Market Pulse50Neutral

First BankOpportunity Rank #131(FRBA) Intrinsic Value & DCF Analysis (2026)

Current Price

$15.86

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$15.86
Price
$21.92
Intrinsic Value
Undervalued by 38%MOS: $17.54

Fundamental Score

66/100
Bullish

Weighted across 6 signals

Narrative Score

50/100
Weak

No change vs previous

The intrinsic value of First Bank (FRBA) is estimated at $21.92 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $15.86, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 10.01% long-term growth rate and a 15.50% discount rate (calculated: 19.46%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of First Bank (FRBA) is estimated at $21.92 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $15.86, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 10.01% long-term growth rate and a 15.50% discount rate (calculated: 19.46%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$21.92
38.21% upside
20% margin of safety: $17.54
Years: 10Growth Rate: 10.01%
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Capital Efficiency

Average Quarterly ROIC
2.36%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

66/100
BullishWeighted across 6 signals
DCF Discount
38.2% discount to price
100
FCF Yield
17.2% trailing FCF yield
100
ROIC vs WACC
ROIC 2.4% vs WACC 11.0% (0.2x)
11
Net Debt / FCF
3.5x net debt to FCF
0
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
22.5% 5Y FCF CAGR
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

50/100
Weak
Vs 6-Month Baseline:Low (13th pct)Weighted across 1 driver
Trend: StableConfidence: 46%Updated: 1h ago
Sources: 11 (11 News)
Drivers(last 30 days)
11 news sentiment-0.0

Investment Coach

Updated 19h ago
BUYConfidence: 54%
Thesis
First Bank (FRBA) is attractively valued with an estimated fair value 57.8% above its current price, supported by strong fundamentals including a healthy free cash flow yield of 17.2%. Despite trailing returns relative to its cost of capital, the company's constructive fundamentals and consistent buybacks suggest potential for upside.
Key Risk
The key risk is the negative spread between ROIC and WACC, indicating returns are currently below the cost of capital, which could pressure valuation if not improved.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 10.01%5 Year CAGR: 19.39%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012
$68$68$31$147$39$28$25$17$39$17$10$6$5$6$5

How Intrinziq Estimates Fair Value

Intrinziq estimates First Bank'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 BankFinancial Services

First Bank provides various banking products and services to individuals, businesses, and governmental entities. The company accepts various deposits, including non-interest bearing demand deposits, interest bearing demand accounts, money market accounts, savings accounts, and certificates of deposit, as well as commercial checking accounts. Its loan products include commercial and industrial loans; commercial real estate loans, such as owner-occupied, investor, construction and development, and multi-family loans; residential real estate loans comprising residential mortgages, first and second lien home equity loans, and revolving lines of credit; and consumer and other loans that include auto, personal, and traditional installment loans. The company also provides electronic banking services, including Internet and mobile banking, electronic bill payment, and banking by phone, as well as ATM and debit cards, and wire and ACH transfer services; remote deposit capture; and cash management services. As of December 31, 2021, it operated 18 full-service branches in Cinnaminson, Cranbury, Delanco, Denville, Ewing, Flemington, Hamilton, Hamilton, Lawrence, Mercerville, Pennington, Randolph, Somerset, and Williamstown counties in New Jersey, as well as Doylestown, Trevose, Warminster, and West Chester counties in Pennsylvania. First Bank was incorporated in 2007 and is headquartered in Hamilton, New Jersey.