What is BCOW's Intrinsic value?

1895 Bancorp of Wisconsin Inc (BCOW) Intrinsic Value Analysis

Executive Summary

As of June 1, 2025, 1895 Bancorp of Wisconsin Inc's estimated intrinsic value ranges from $0.00 to $0.00 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside

Is 1895 Bancorp of Wisconsin Inc (BCOW) undervalued or overvalued?

With the current market price at $9.40, the stock appears to be significantly overvalued.

Understanding Intrinsic Value

Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate 1895 Bancorp of Wisconsin Inc's intrinsic value, including:

Weighted Average Cost of Capital (WACC)

The cost of capital is a critical factor in valuation models, representing the required return for investors.

WACC Component Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 0.57 0.77
Cost of equity 6.5% 9.2%
Cost of debt 5.0% 5.0%
Tax rate 26.2% 27.0%
Debt/Equity ratio 1 1
After-tax WACC 5.1% 6.4%

Valuation Methods

Key Financial Metrics

Metric Value
Market Capitalization $52M
Enterprise Value $52M
Trailing P/E 0.00
Forward P/E 0.00
Trailing EV/EBITDA 0.00
Current Dividend Yield 62.96%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 0.86

Investment Decision Framework

To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:

  1. Forecast Certainty: DCF methods rely on long-term projections, while earnings power value focuses on current normalized earnings
  2. Business Model Alignment: Dividend models are more appropriate for mature companies with established dividend policies
  3. Historical Accuracy: How well each method has predicted fair value historically

Valuation Weight Matrix

Valuation Method Weight Weighted Value
Weighted Average 100% $0.00

Investment Conclusion

Based on our comprehensive valuation analysis, 1895 Bancorp of Wisconsin Inc's weighted average intrinsic value is $0.00, which is approximately 100.0% below the current market price of $9.40.

Key investment considerations:

  • Overall financial health and market position

Given these factors, we believe 1895 Bancorp of Wisconsin Inc is currently significantly overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.