AlphaMadera's AlphaVal page classifies Community Bank System, Inc. as a Banks, Insurers & Asset Managers business and values it using P/Tangible Book × ROE Quality, then compares the result to the current market price to flag CBU as undervalued, fairly valued, or overvalued.

What is Community Bank System, Inc.'s fair value?

Fair value for CBU comes from a P/Tangible Book × ROE Quality model -- the approach AlphaVal selected for this company's Banks, Insurers & Asset Managers classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value CBU?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. CBU was classified as Banks, Insurers & Asset Managers and is valued using P/Tangible Book × ROE Quality, built from CBU's most recent reported fundamentals.

CBU - Community Bank System, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $73.00 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 85% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Fair Value Mild

Trading 8.1% below fair value

Current Price $63.08

Bear Case $47.12 25.3% downside ($47.12 - $63.08) / $63.08 = -25.3% ROTCE 14.8% → 2.33x TBV

Fair Value $68.62 8.8% upside ($68.62 - $63.08) / $63.08 = 8.8% ROTCE 19.8% → 3.39x TBV

Bull Case $80.93 28.3% upside ($80.93 - $63.08) / $63.08 = 28.3% ROTCE 22.8% → 4.00x TBV

Adjust Assumptions

Return on Tangible Equity

19.8%

Cost of Equity

8.7%

Key Value Driver

ROTCE (19.8%) vs. cost of equity (8.7%)

Terminal Value % of EV

Implied Market Multiple 3.12x

Market is pricing in (growth)

Plain-Language Summary

With ROTCE of 19.8% vs. 8.7% cost of equity, fair P/TBV is 3.39x on $20.23 tangible book, implying $68.62 per share. DDM cross-check: $28.62.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (12 analysts) $73.00

Analyst Range $71.00 – $75.00

Divergence from AlphaVal 6%

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.

ℹ Dividend-based valuation: $28.62 (58% 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