OZK - Bank OZK
Price:
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CONSENSUS:
Hold
DETAILS
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PRICE TARGET:
$58.00
DETAILS
HIGH:
$62.00
LOW:
$51.00
MEDIAN:
$59.50
CONSENSUS:
$58.00
UPSIDE:
20.48%
AlphaVal
Deterministic, archetype-aware fair value
Banks, Insurers & Asset Managers
85% confidence
Primary model: P/Tangible Book × ROE Quality
Adjust Assumptions
13.1%
9.3%
Key Value Driver
ROTCE (13.1%) vs. cost of equity (9.3%)
Implied Market Multiple
0.96x
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 $58.00 from 22 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $80.54 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.
Dividend-based valuation: $673.10 (664% above our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $58.00 (from 22 analysts). Our estimate is 52% 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