Ames National Corporation

AI-generated fair value estimate for this company.

Method: Bank valuation via justified Price/Book (Gordon Growth / residual income framework): Justified P/B = (ROE - g) / (Ke - g) = (11.31% - 3%) / (10% - 3%) = 1.187x; applied to book value per share of $24.06 (total equity $213.09M / 8.86M shares) gives intrinsic value = 1.187 x $24.06 = ~$28.55/share.

Reasoning: As a small multi-bank holding company (Ames National, rural/ag-focused Iowa banks), value is best driven by book equity and the return generated on it rather than a revenue/FCF DCF; 11.31% is the trailing actual ROE, 10% is a reasonable required return for a small-cap regional bank, and 3% is a conservative long-run earnings-growth assumption for a mature, low-growth rural deposit franchise.