First Business Financial Services, Inc.

NasdaqGS:FBIZ Stock Report

Market Cap: US$304.6m

First Business Financial Services Valuation

Is FBIZ undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FBIZ when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FBIZ ($37.5) is trading below our estimate of fair value ($90.44)

Significantly Below Fair Value: FBIZ is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for FBIZ?

Other financial metrics that can be useful for relative valuation.

FBIZ key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does FBIZ's PE Ratio compare to its peers?

The above table shows the PE ratio for FBIZ vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.8x
FRST Primis Financial
30.2x55.5%US$294.2m
FMAO Farmers & Merchants Bancorp
13.4x3.0%US$304.0m
UNTY Unity Bancorp
7x4.0%US$282.4m
CARE Carter Bankshares
12.6x6.0%US$287.3m
FBIZ First Business Financial Services
8.8x10.2%US$304.6m

Price-To-Earnings vs Peers: FBIZ is good value based on its Price-To-Earnings Ratio (8.8x) compared to the peer average (15.8x).


Price to Earnings Ratio vs Industry

How does FBIZ's PE Ratio compare vs other companies in the US Banks Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a6.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: FBIZ is good value based on its Price-To-Earnings Ratio (8.8x) compared to the US Banks industry average (9.6x).


Price to Earnings Ratio vs Fair Ratio

What is FBIZ's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FBIZ PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.8x
Fair PE Ratio11.2x

Price-To-Earnings vs Fair Ratio: FBIZ is good value based on its Price-To-Earnings Ratio (8.8x) compared to the estimated Fair Price-To-Earnings Ratio (11.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst FBIZ forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$37.50
US$45.00
+20.0%
4.0%US$48.00US$43.00n/a5
Mar ’25US$34.08
US$45.25
+32.8%
4.2%US$48.00US$43.00n/a4
Feb ’25US$35.71
US$44.50
+24.6%
6.6%US$48.00US$40.00n/a4
Jan ’25US$40.10
US$41.00
+2.2%
4.2%US$44.00US$40.00n/a4
Dec ’24US$35.99
US$38.25
+6.3%
7.9%US$40.00US$33.00n/a4
Nov ’24US$31.08
US$38.25
+23.1%
7.9%US$40.00US$33.00n/a4
Oct ’24US$30.01
US$38.40
+28.0%
5.4%US$40.00US$35.00n/a5
Sep ’24US$32.68
US$38.80
+18.7%
3.8%US$40.00US$37.00n/a5
Aug ’24US$33.88
US$38.50
+13.6%
3.9%US$40.00US$37.00n/a4
Jul ’24US$29.49
US$35.50
+20.4%
7.6%US$38.00US$31.00n/a4
Jun ’24US$26.89
US$35.50
+32.0%
7.6%US$38.00US$31.00n/a4
May ’24US$27.50
US$36.75
+33.6%
10.8%US$42.00US$31.00n/a4
Apr ’24US$30.51
US$41.25
+35.2%
3.6%US$43.00US$39.00n/a4
Mar ’24US$35.35
US$41.25
+16.7%
3.6%US$43.00US$39.00US$34.084
Feb ’24US$35.85
US$41.25
+15.1%
3.6%US$43.00US$39.00US$35.714
Jan ’24US$36.55
US$41.25
+12.9%
3.6%US$43.00US$39.00US$40.104
Dec ’23US$38.47
US$41.25
+7.2%
3.6%US$43.00US$39.00US$35.994
Nov ’23US$38.73
US$41.25
+6.5%
3.6%US$43.00US$39.00US$31.084
Oct ’23US$32.31
US$40.00
+23.8%
7.7%US$43.00US$35.00US$30.014
Sep ’23US$33.40
US$40.00
+19.8%
7.7%US$43.00US$35.00US$32.684
Aug ’23US$32.68
US$39.50
+20.9%
7.3%US$43.00US$35.00US$33.884
Jul ’23US$31.61
US$39.25
+24.2%
8.3%US$43.00US$34.00US$29.494
Jun ’23US$35.21
US$40.00
+13.6%
3.5%US$42.00US$38.00US$26.894
May ’23US$34.67
US$38.50
+11.0%
6.0%US$42.00US$36.00US$27.504
Apr ’23US$32.82
US$38.00
+15.8%
4.2%US$40.00US$36.00US$30.514
Mar ’23US$32.07
US$37.40
+16.6%
5.0%US$40.00US$35.00US$35.355

Analyst Forecast: Target price is less than 20% higher than the current share price.


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