Business First Bancshares, Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$30.00
Market Price
$30.87
Overvalued By
2.9%
Method: Excess-return / P-TBV model: TBVPS $25.85, ROTCE 10.4%, cost of equity 9.5%, terminal growth 4.0% -> fair P/TBV = (ROTCE-g)/(COE-g) = 1.16x -> value = 1.16 x $25.85
Reasoning: Community bank best valued on tangible book plus the excess return it earns above its cost of equity, not a DCF; BFST's ROTCE modestly exceeds a mid-single-digit long-run growth/cost-of-equity spread, supporting a small premium to tangible book value