AlphaMadera's AlphaVal page classifies FS Bancorp, 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 FSBW as undervalued, fairly valued, or overvalued.

What is FS Bancorp, Inc.'s fair value?

Fair value for FSBW 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 FSBW?

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

FSBW - FS Bancorp, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $45.00 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 85% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Undervalued Moderate

Trading 35.4% below fair value

Current Price $44.62

Bear Case $42.40 5.0% downside ($42.40 - $44.62) / $44.62 = -5.0% ROTCE 8.5% → 1.14x TBV

Fair Value $69.05 54.7% upside ($69.05 - $44.62) / $44.62 = 54.7% ROTCE 11.4% → 1.85x TBV

Bull Case $85.03 90.6% upside ($85.03 - $44.62) / $44.62 = 90.6% ROTCE 13.1% → 2.28x TBV

Adjust Assumptions

Return on Tangible Equity

11.4%

Cost of Equity

8.0%

Key Value Driver

ROTCE (11.4%) vs. cost of equity (8.0%)

Terminal Value % of EV

Implied Market Multiple 1.19x

Market is pricing in (growth)

Plain-Language Summary

With ROTCE of 11.4% vs. 8.0% cost of equity, fair P/TBV is 1.85x on $37.34 tangible book, implying $69.05 per share. DDM cross-check: $69.91.

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.

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