Alerus Financial Corporation

AI-generated fair value estimate for this company.

Method: Excess-return (residual income) model: book value of ~$23.36/share (price $31.77 / 1.36x P/B), valued at a P/B multiple of (ROE-g)/(COE-g) using a normalized through-cycle ROE of 8.5% (above the current temporarily depressed 4.96%-5.0% ROE, which reflects recent acquisition-related costs) versus a 10% cost of equity and 3% growth = (0.085-0.03)/(0.10-0.03) = 0.786x, giving ~$18.36/share; ~24.90M shares.

Reasoning: Alerus is a bank/wealth-and-retirement-services holding company best valued relative to book value and return on equity rather than a generic FCF DCF; because current ROE looks temporarily depressed by acquisition integration costs, a normalized through-cycle ROE is used in the excess-return framework rather than the trailing figure.