Cass Information Systems, Inc.

AI-generated fair value estimate for this company.

Method: Excess-return/justified-P/B model: book value $19.11/share; normalized ROE 15% (haircut from a lumpy, one-off-boosted 29-83% YoY EPS growth print); 10% cost of equity (small-cap illiquidity premium); 5% long-term growth; implied justified P/B 2.00x.

Reasoning: Cass is a capital-light B2B fee business (freight-audit/utility expense processing) wrapped around a small bank subsidiary, so ROE-on-book is more informative than a pure FCF DCF; the growth and ROE inputs are normalized down from recent one-time-boosted prints to a sustainable run rate.