EQBK - Equity Bancshares, Inc.
Price:
--
--
|
CONSENSUS:
Hold
DETAILS
|
PRICE TARGET:
$54.25
DETAILS
HIGH:
$58.00
LOW:
$51.00
MEDIAN:
$54.00
CONSENSUS:
$54.25
UPSIDE:
13.26%
AlphaVal
Deterministic, archetype-aware fair value
Banks, Insurers & Asset Managers
85% confidence
Primary model: P/Tangible Book × ROE Quality
Adjust Assumptions
3.6%
8.6%
Key Value Driver
ROTCE (3.6%) vs. cost of equity (8.6%)
Implied Market Multiple
1.57x
Plain-Language Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $54.25 from 5 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $52.01 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.
Return on equity (3.6%) is below the minimum investors require (8.6%). This means the bank is worth less than the net assets on its books.
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