Columbia Banking System, Inc.

AI-generated fair value estimate for this company.

Method: Bank excess-return (Gordon growth) model rather than an FCF DCF: Value = Tangible Book Value per Share x (ROTCE - g) / (Cost of Equity - g); TBV/share $19.22 (Jun 30, 2026); normalized ROTCE of 13% (below the current 15.3%, tempered for post-Pacific Premier-merger integration tailwinds fading and eventual credit-cost normalization); 10% cost of equity; 4% long-term growth; implied 1.5x P/TBV multiple.

Reasoning: A standard unlevered FCF DCF does not fit a bank's balance-sheet-driven earnings model; tangible book value and return on tangible common equity better capture value creation, especially just after a large (Pacific Premier Bancorp) acquisition whose integration benefits are not fully run-rate yet.