Broadway Financial Corporation

AI-generated fair value estimate for this company.

Method: Excess-return (Gordon Growth on ROE) bank valuation: $12.11 book value per common share (Q2 2026 10-Q); 6.0% sustainable common-equity ROE reflecting the $150M ECIP Treasury preferred capital drag; 9.5% cost of equity; 2.5% terminal growth; implied 0.50x price-to-book multiple applied to book value per share.

Reasoning: BYFC is a small bank holding company whose earnings are balance-sheet driven, so an excess-return/P-B model tied to sustainable ROE versus cost of equity is more appropriate than an unlevered FCF DCF; the ECIP preferred structurally caps common ROE below the bank's cost of equity, justifying a discount to the $12.11 book value.