AlphaMadera's AlphaVal page computes The Bank of N.T. Butterfield & Son Limited'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 NTB as undervalued, fairly valued, or overvalued.

What is The Bank of N.T. Butterfield & Son Limited's fair value?

Fair value for NTB 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 NTB?

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 NTB's most recent reported fundamentals.

NTB - The Bank of N.T. Butterfield & Son Limited

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $57.00 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 85% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Undervalued Strong

Trading 41.6% below fair value

Current Price $56.01

Bear Case $95.93 71.3% upside ($95.93 - $56.01) / $56.01 = 71.3% ROTCE 16.5% → 4.00x TBV

Fair Value $95.93 71.3% upside ($95.93 - $56.01) / $56.01 = 71.3% ROTCE 22.0% → 4.00x TBV

Bull Case $95.93 71.3% upside ($95.93 - $56.01) / $56.01 = 71.3% ROTCE 25.3% → 4.00x TBV

Adjust Assumptions

Return on Tangible Equity

22.0%

Cost of Equity

7.0%

Key Value Driver

ROTCE (22.0%) vs. cost of equity (7.0%)

Implied Market Multiple 2.12x

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 $57.00 from 7 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $95.93 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 Dividend-based valuation: $46.11 (56% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.

ℹ Wall Street's average price target is $57.00 (from 7 analysts). Our estimate is 85% 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