Is FCNCA undervalued?

AlphaMadera's AlphaVal page computes First Citizens BancShares, Inc.'s fair value using a multi-method blend (DCF, comparable-multiples, and Graham-style intrinsic value), then compares it to the current market price to flag FCNCA as undervalued, fairly valued, or overvalued.

What is First Citizens BancShares, Inc.'s fair value?

Fair value for FCNCA is a model output combining discounted cash flow projections, peer-group multiples, and a Graham number floor. The live AlphaVal page shows the blended fair value alongside each method's individual estimate.

How does AlphaMadera value FCNCA?

AlphaVal uses three primary techniques: a five-year discounted-cash-flow projection with terminal multiple, peer-group multiple analysis (P/E, EV/EBITDA, P/S), and Graham's defensive-investor intrinsic-value formula. Inputs come from FCNCA's most recent reported fundamentals.

FCNCA - First Citizens BancShares, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $2,234.20 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 90% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Undervalued Moderate

Trading 31.4% below fair value

Current Price $1991.55

Bear Case $1,707.30 14.3% downside ($1,707.30 - $1,991.55) / $1,991.55 = -14.3% ROTCE 7.6% → 0.96x TBV

Fair Value $2,904.29 45.8% upside ($2,904.29 - $1,991.55) / $1,991.55 = 45.8% ROTCE 10.2% → 1.64x TBV

Bull Case $3,622.48 81.9% upside ($3,622.48 - $1,991.55) / $1,991.55 = 81.9% ROTCE 11.7% → 2.05x TBV

Adjust Assumptions

Return on Tangible Equity

10.2%

Cost of Equity

7.8%

Key Value Driver

ROTCE (10.2%) vs. cost of equity (7.8%)

Implied Market Multiple 1.06x

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 $2234.20 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $2904.29 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.

ℹ Wall Street's average price target is $2234.20 (from 11 analysts). Our estimate is 37% above the consensus -- consider that gap carefully.

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