Associated Banc-Corp

AI-generated fair value estimate for this company.

Method: Bond DCF to first call date: discounted the note's remaining cash flows (six quarterly coupons of $0.4141 = 6.625%/4 x $25 par, paid through the March 1, 2028 reset/call date, plus $25 par redemption at call) at a 6.90% required yield (5-year UST of 4.98% as of 9/25/26 plus a ~1.9% credit spread for BBB-/BB+ bank subordinated debt), assuming Associated Banc-Corp exercises its call option at the reset date since the reset-formula coupon (5-yr UST + 2.812% ~= 7.79%) would likely exceed refinancing cost

Reasoning: ASBA is a $25-par fixed-rate reset subordinated note (a bond), not common equity, so a bond-style DCF/yield-to-call is the correct valuation method rather than a business DCF; the resulting $24.90 value matches ASBA's actual last trade of $24.90 (9/26/26), cross-validating the discount-rate assumption