INBK - First Internet Bancorp
Price:
--
--
|
CONSENSUS:
Hold
DETAILS
|
PRICE TARGET:
$29.33
DETAILS
HIGH:
$33.00
LOW:
$26.00
MEDIAN:
$29.00
CONSENSUS:
$29.33
UPSIDE:
10.80%
AlphaVal
Deterministic, archetype-aware fair value
Banks, Insurers & Asset Managers
85% confidence
Primary model: P/Tangible Book × ROE Quality
Adjust Assumptions
-9.9%
8.9%
Key Value Driver
ROTCE (-9.9%) vs. cost of equity (8.9%)
Implied Market Multiple
0.65x
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 $29.33 from 10 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $32.18 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 (-9.9%) is below the minimum investors require (8.9%). 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