Market Pulse50Neutral

First BanCorp.Opportunity Rank #9(FBP) Intrinsic Value & DCF Analysis (2026)

Current Price

$20.76

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$20.76
Price
$26.23
Intrinsic Value
Undervalued by 26%MOS: $20.98

Fundamental Score

90/100
Bullish

Weighted across 6 signals

Narrative Score

52/100
Weak

No change vs previous

The intrinsic value of First BanCorp. (FBP) is estimated at $26.23 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $20.76, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 3.27% long-term growth rate and a 14.90% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of First BanCorp. (FBP) is estimated at $26.23 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $20.76, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 3.27% long-term growth rate and a 14.90% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$26.23
26.35% upside
20% margin of safety: $20.98
Years: 10Growth Rate: 3.27%
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Capital Efficiency

Average Quarterly ROIC
23.3%
Cost of Capital (estimated)11%
Value StatusCreating Value

The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.

Complete historical ROIC is available with
.

Fundamental Details

90/100
BullishWeighted across 6 signals
DCF Discount
26.3% discount to price
94
FCF Yield
14.1% trailing FCF yield
100
ROIC vs WACC
ROIC 23.3% vs WACC 11.0% (2.1x)
100
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
8.0% 5Y FCF CAGR
65
Strengths lead the score: DCF Discount, FCF Yield.

Narrative Details

52/100
Weak
Vs 6-Month Baseline:Below Avg (35th pct)Weighted across 3 recent drivers
Trend: StableConfidence: 63%Updated: 38m ago
Sources: 18 (15 News · 3 Analyst)
Drivers(last 30 days)
2 regulatory scrutiny+0.2
13 news sentiment+0.1
3 analyst reiterations0.0

Investment Coach

Updated 10h ago
BUYConfidence: 81%
Thesis
First BanCorp. is attractively valued with a fair value estimate 27% above its current price, supported by strong fundamentals including a high ROIC exceeding its cost of capital by 12.3 points and a healthy free cash flow yield of 14.1%. The company's robust financial metrics and buyback activity underpin a bullish outlook despite a currently weak narrative score.
Key Risk
The key risk is that the valuation discount may narrow below 10%, or the ROIC could fall below the cost of capital, undermining the investment thesis.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Confirm ROIC stays above cost of capital over coming quarters.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 3.26%5 Year CAGR: 2.26%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$462$456$414$386$461$413$314$317$309$245$210$274$287$353$241$170$269$284$209$85$277

How Intrinziq Estimates Fair Value

Intrinziq estimates First BanCorp.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

First BanCorp.Financial Services

First BanCorp. operates as a bank holding company for FirstBank Puerto Rico that provides various financial services for retail, commercial, and institutional clients. The company operates through six segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers commercial loans, including commercial real estate and construction loans and floor plan financings; and other products, such as cash management and business management services. The Mortgage Banking segment engages in the origination, sale, and servicing of various residential mortgage loans; acquisition and sale of mortgages in the secondary markets; and purchase of mortgage loans from other local banks and mortgage bankers. The Consumer (Retail) Banking segment provides auto, boat, credit card, and personal loans; lines of credit; deposit products comprising interest bearing and non-interest bearing checking and savings accounts, individual retirement accounts, and retail certificates of deposit (CDs); and finance leasing and insurance agency services. The Treasury and Investments segment offers funding and liquidity management services. The United States Operations segment provides checking, savings, and money market accounts, as well as retail CDs; traditional commercial and industrial, and commercial real estate loans; and internet banking, cash management, remote deposit capture, and automated clearing house, and transactions services. The Virgin Islands Operations segment is involved in consumer, commercial lending, and deposit-taking activities. The company operates 64 branches in Puerto Rico, 8 branches in the U.S. Virgin Islands and British Virgin Islands, and 11 branches in the state of Florida. First BanCorp. was founded in 1948 and is headquartered in San Juan, Puerto Rico.