AlphaMadera's AlphaVal page computes Heritage Commerce Corp'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 HTBK as undervalued, fairly valued, or overvalued.

What is Heritage Commerce Corp's fair value?

Fair value for HTBK 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 HTBK?

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 HTBK's most recent reported fundamentals.

HTBK - Heritage Commerce Corp

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $14.50 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 85% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Overvalued Moderate

Trading 18.5% above fair value

Current Price $13.45

Bear Case $6.20 53.9% downside ($6.20 - $13.45) / $13.45 = -53.9% ROTCE 6.7% → 0.66x TBV

Fair Value $11.35 15.6% downside ($11.35 - $13.45) / $13.45 = -15.6% ROTCE 8.9% → 1.21x TBV

Bull Case $14.43 7.3% upside ($14.43 - $13.45) / $13.45 = 7.3% ROTCE 10.3% → 1.54x TBV

Adjust Assumptions

Return on Tangible Equity

8.9%

Cost of Equity

8.1%

Key Value Driver

ROTCE (8.9%) vs. cost of equity (8.1%)

Implied Market Multiple 1.54x

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 $14.50 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $11.35 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 $14.50 (from 12 analysts). Our estimate is 27% below 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