BankUnited, Inc.

AI-generated fair value estimate for this company.

Method: 10-year FCFE-on-earnings DDM: $3.53 FY2025 diluted EPS base (used as proxy for distributable FCFE, standard for banks where capex/D&A are not meaningful); 8% EPS growth years 1-2 tapering to 6% by year 5; 5% years 6-7 tapering to 4% years 8-10; 10% cost of equity; 4% terminal growth.

Reasoning: For a bank holding company, a traditional unlevered FCF DCF is not meaningful because capital expenditure and depreciation do not reflect the economics of the business; instead, earnings (which approximate distributable capital after regulatory capital retention) are discounted at the cost of equity in a two-stage Gordon growth framework, with growth rates informed by BankUnited's recent NIM expansion and loan growth trends.