Coastal Financial Corporation

AI-generated fair value estimate for this company.

Method: 10-year FCFE DCF (bank valuation): TTM net income normalized to ~$47.75M by adding back a one-time $68.8M pre-tax (~$51.6M after-tax) Q2 2026 credit provision tied to a single BaaS fintech partner; 10% annual earnings growth years 1-5, 6% years 6-10; 12% cost of equity (reflecting small-cap/BaaS concentration risk); 4% terminal growth; 15.29M shares outstanding.

Reasoning: Coastal Financial's reported TTM net loss was driven almost entirely by a single, identified one-time credit charge from its Banking-as-a-Service partner lending book; normalizing for that charge and valuing the resulting earnings power via a bank FCFE DCF (net income as distributable cash flow) better reflects intrinsic value than the headline GAAP loss, while the above-market discount rate prices in real BaaS credit-risk-management uncertainty highlighted by the stock's 43% drawdown.