AlphaMadera's AlphaVal page computes S&T Bancorp, Inc.'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 STBA as undervalued, fairly valued, or overvalued.

What is S&T Bancorp, Inc.'s fair value?

Fair value for STBA 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 STBA?

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 STBA's most recent reported fundamentals.

STBA - S&T Bancorp, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $51.00 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 85% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Fair Value Mild

Trading 5.5% below fair value

Current Price $48.88

Bear Case $36.20 25.9% downside ($36.20 - $48.88) / $48.88 = -25.9% ROTCE 9.3% → 1.08x TBV

Fair Value $51.72 5.8% upside ($51.72 - $48.88) / $48.88 = 5.8% ROTCE 12.3% → 1.71x TBV

Bull Case $67.24 37.6% upside ($67.24 - $48.88) / $48.88 = 37.6% ROTCE 14.2% → 2.09x TBV

Adjust Assumptions

Return on Tangible Equity

12.3%

Cost of Equity

8.9%

Key Value Driver

ROTCE (12.3%) vs. cost of equity (8.9%)

Implied Market Multiple 1.62x

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 $51.00 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $51.72 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: $32.36 (38% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.

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