AlphaMadera's AlphaVal page classifies Southern First Bancshares, Inc. 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 SFST as undervalued, fairly valued, or overvalued.

What is Southern First Bancshares, Inc.'s fair value?

Fair value for SFST 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 SFST?

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

SFST - Southern First Bancshares, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $64.00 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 39.2% above fair value

Current Price $60.29

Bear Case $30.32 49.7% downside ($30.32 - $60.29) / $60.29 = -49.7% ROTCE 6.2% → 0.51x TBV

Fair Value $43.32 28.1% downside ($43.32 - $60.29) / $60.29 = -28.1% ROTCE 8.2% → 1.00x TBV

Bull Case $56.32 6.6% downside ($56.32 - $60.29) / $60.29 = -6.6% ROTCE 9.5% → 1.29x TBV

Adjust Assumptions

Return on Tangible Equity

8.2%

Cost of Equity

8.2%

Key Value Driver

ROTCE (8.2%) vs. cost of equity (8.2%)

Terminal Value % of EV

Implied Market Multiple 1.55x

Market is pricing in (growth)

Plain-Language Summary

With ROTCE of 8.2% vs. 8.2% cost of equity, fair P/TBV is 1.00x on $38.99 tangible book, implying $43.32 per share.

Analyst Consensus (External Reference)

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

Average Target (7 analysts) $64.00

Analyst Range $64.00 – $64.00

Divergence from AlphaVal 32%

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 (8.2%) is below the minimum investors require (8.2%). This means the bank is worth less than the net assets on its books.

ℹ Wall Street's average price target is $64.00 (from 7 analysts). Our estimate is 32% 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