Atlanticus Holdings Corporation

AI-generated fair value estimate for this company.

Method: Residual income (excess-return-on-equity) model: $737.48M current book value; 15.17M diluted shares; 12% cost of equity; ROE starting at 23% in year 1 fading linearly to 14% by year 10; 65% earnings retention/reinvestment rate; 3% terminal growth on residual income beyond year 10.

Reasoning: Atlanticus is a highly-levered subprime consumer-finance lender where financing and operating cash flows are intertwined, making an unlevered FCF DCF unreliable; a residual-income model anchored to book value and a fading ROE-over-cost-of-equity spread better captures value creation as competitive pressure normalizes returns over a decade.