City Holding Company

AI-generated fair value estimate for this company.

Method: Excess-return-on-equity / Gordon growth model anchored to book value: Justified P/B = (ROE 16.5% - g 4.0%) / (Cost of equity 9.5% - g 4.0%) = 2.27x, applied to book value per share of $57.57 (as of 6/30/2026). Cost of equity via CAPM: risk-free rate 4.3% + beta 0.95 x equity risk premium 5.5%.

Reasoning: City Holding is a stable, well-capitalized community bank whose value is driven by return on book equity rather than discrete project cash flows, so an excess-return/DDM model anchored to ROE, cost of equity, and sustainable growth is the most appropriate and standard bank valuation method.