Bar Harbor Bankshares

AI-generated fair value estimate for this company.

Method: Gordon Growth dividend discount model on a community bank holding company: current annualized dividend D0=$1.36 (share price $39.40, yield 3.45%); trailing/run-rate ROE ~11.1% (Q2 2026 EPS $0.91 x4 = $3.64 annualized / book value per share $32.80) with payout ratio ~37% implies retention-based sustainable dividend growth g = ROE x retention = 11.1% x 63% = 5.5%; cost of equity r=9.0% via CAPM (rf ~4.2%, beta ~0.9, ERP ~5.5%); P = D1/(r-g) = ($1.36 x 1.055)/(0.09-0.055) = $41.00.

Reasoning: BHB is a bank holding company where free cash flow is not economically meaningful (deposits/loans are the operating business), so a dividend discount model tied to sustainable ROE-driven dividend growth is more appropriate than an unlevered FCF DCF; the DDM output lines up closely with the $32.80 book value (1.2x P/B, consistent with an 11% ROE bank).