First Financial Bankshares, Inc. (FFIN) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-81.0%

$5.96

vs $31.44 price

Levered DCF

$50.36

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

-0.24

Distress zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.78×	23.11×	21.8×	20.98×	31.78×	25.47×	28.77×	25.99×
P/B	2.23×	3.2×	2.88×	3.88×	4.11×	3.06×	3.88×	3.7×
P/S	5.18×	6.97×	6.95×	8.9×	14.31×	10.44×	11.42×	10.17×
EV / EBITDA	9.96×	16.06×	16.38×	17.77×	25.88×	18.96×	23.19×	21.6×
Gross margin	71.8%	70.8%	75.1%	91.1%	99.0%	93.1%	92.1%	93.6%
Operating margin	37.5%	36.8%	39.1%	51.0%	53.8%	49.3%	47.5%	46.5%
Net margin	30.7%	30.2%	32.0%	42.5%	45.0%	41.1%	39.5%	39.3%
Current ratio	0.68×	0.09×	0.46×	0.5×	0.63×	0.56×	0.53×	0.52×
Debt / equity	0.01×	0.12×	0.27×	0.51×	0.38×	0.26×	0.31×	0.44×
Interest coverage	1.54×	1.34×	1.69×	8.93×	45.01×	17.02×	6.58×	9.41×
Dividend yield	2.5%	2.0%	2.3%	1.9%	1.1%	1.4%	1.3%	1.4%
Payout ratio	41.8%	46.0%	50.2%	38.9%	35.0%	34.8%	37.0%	35.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	13.2%	13.9%	13.3%	18.5%	12.9%	12.0%	13.4%	14.3%
Return on invested capital	13.1%	11.9%	10.1%	11.9%	9.0%	9.1%	9.9%	9.7%
Return on assets	1.6%	1.6%	1.5%	1.8%	1.7%	1.9%	2.0%	1.9%
Free cash flow yield	7.2%	5.7%	6.2%	6.3%	4.6%	3.8%	4.1%	4.3%
Earnings yield	5.9%	4.3%	4.6%	4.8%	3.1%	3.9%	3.5%	3.9%
Enterprise value	$3.2B	$4.6B	$4.2B	$5.2B	$7.4B	$4.8B	$4.9B	$4.1B
Net debt / EBITDA	-3.27×	-1.99×	-0.52×	1.06×	0.5×	-1.17×	0.49×	1.15×
Cash conversion cycle (days)	-17,375	0	0	0	0	-158	0	0