SYBT
Stock Yards Bancorp, Inc.
$76.26
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 11.3% below fair value
You pay
$76.26
Bear
$57.52
Fair
$86.02
Bull
$103.11
Bear
$57.52
-24.6%
ROTCE 12.2% → 2.01x TBV
Fair
$86.02
+12.8%
ROTCE 16.3% → 3.01x TBV
Bull
$103.11
+35.2%
ROTCE 18.8% → 3.60x TBV
Key Value Driver
ROTCE (16.3%) vs. cost of equity (8.1%)
Implied Market Multiple
2.62x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $80.00 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $86.02 per share.
Warnings
Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.
Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.
Dividend-based valuation: $24.40 (72% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Key Risks
- Book value quality matters as much as level — check loan loss reserves
- Interest rate sensitivity creates non-linear earnings surprises
- Insurance reserving is actuarial, not financial — errors emerge slowly