What is FRBK's Intrinsic value?

Republic First Bancorp Inc (FRBK) Intrinsic Value Analysis

Executive Summary

As of June 21, 2025, Republic First Bancorp Inc's estimated intrinsic value ranges from $4.64 to $132.95 per share, depending on the valuation methodology applied.

Valuation Method Fair Value (USD) Implied Upside/Downside
Dividend Discount Model (Multi-Stage) $132.95 +42927.5%
Dividend Discount Model (Stable) $4.64 +1400.2%

Is Republic First Bancorp Inc (FRBK) undervalued or overvalued?

With the current market price at $0.31, the stock appears to be significantly undervalued.

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 Republic First Bancorp Inc's intrinsic value, including:

  1. Dividend Discount Model (DDM): Values the company based on expected future dividend payments

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 130.03 172.91
Cost of equity 602.0% 973.2%
Cost of debt 5.0% 5.0%
Tax rate 23.9% 26.6%
Debt/Equity ratio 563.9 563.9
After-tax WACC 4.9% 5.4%

Valuation Methods

2. Dividend Discount Model (DDM)

The DDM values a company based on its expected future dividend payments. We used two approaches:

Multi-Stage DDM:

  • Current payout ratio: 111.8%
  • Stable payout ratio: 90.0%
  • Growth transition: 5 years
  • Cost of equity: 787.6%
  • Long-term growth rate: 1.0%
  • Fair value: $132.95 (42927.5% from current price)

Stable DDM:

  • Stable payout ratio: 70% (Low) to 90% (High)
  • Cost of equity: 973.2% (Low) to 602.0% (High)
  • Long-term growth rate: 0.5% (Low) to 1.5% (High)
  • Fair value range: $3 to $6
  • Selected fair value: $4.64 (1400.2% from current price)

Key Financial Metrics

Metric Value
Market Capitalization $0M
Enterprise Value $981M
Trailing P/E 0.01
Forward P/E 0.00
Trailing EV/EBITDA 0.00
Current Dividend Yield 1512000.50%
Dividend Growth Rate (5Y) 0.00%
Debt-to-Equity Ratio 563.90

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
Dividend Discount Model (Multi-Stage) 57% $26.59
Dividend Discount Model (Stable) 43% $0.70
Weighted Average 100% $77.96

Investment Conclusion

Based on our comprehensive valuation analysis, Republic First Bancorp Inc's weighted average intrinsic value is $77.96, which is approximately 25130.1% above the current market price of $0.31.

Key investment considerations:

  • Overall financial health and market position

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