AlphaMadera's AlphaVal page classifies Bank OZK 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 OZK as undervalued, fairly valued, or overvalued.

What is Bank OZK's fair value?

Fair value for OZK 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 OZK?

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

OZK - Bank OZK

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $56.00 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 49.6% below fair value

Current Price $44.41

Bear Case $61.63 38.8% upside ($61.63 - $44.41) / $44.41 = 38.8% ROTCE 9.8% → 1.10x TBV

Fair Value $88.05 98.3% upside ($88.05 - $44.41) / $44.41 = 98.3% ROTCE 13.1% → 1.72x TBV

Bull Case $114.47 157.7% upside ($114.47 - $44.41) / $44.41 = 157.7% ROTCE 15.0% → 2.09x TBV

Adjust Assumptions

Return on Tangible Equity

13.1%

Cost of Equity

9.3%

Key Value Driver

ROTCE (13.1%) vs. cost of equity (9.3%)

Terminal Value % of EV

Implied Market Multiple 0.89x

Market is pricing in (growth)

Plain-Language Summary

With ROTCE of 13.1% vs. 9.3% cost of equity, fair P/TBV is 1.72x on $50.10 tangible book, implying $88.05 per share. DDM cross-check: $281.67.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (22 analysts) $56.00

Analyst Range $51.00 – $61.00

Divergence from AlphaVal 57%

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: $281.67 (220% above our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.

ℹ Wall Street's average price target is $56.00 (from 22 analysts). Our estimate is 57% 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