Byline Bancorp, Inc.
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$34.74
Market Price
$37.74
Overvalued By
8.6%
Method: Residual income / excess-return model on book value: $28.26 book value per share; 11.68% ROE (trailing net income of $149.5M / $1.28B stockholders equity); 9.5% cost of equity for a well-capitalized Chicago-area community bank; intrinsic value = BVPS x (ROE / cost of equity).
Reasoning: Byline Bancorp, like most bank holding companies, is best valued via a residual-income/excess-return framework on book equity rather than an operating-company DCF, since bank earnings are a function of net interest margin and credit performance applied to a regulatory capital base; the modest excess-return premium reflects consistently above-cost-of-capital ROE and solid credit quality.