Old Second Bancorp, Inc. (OSBC) 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

-29.2%

$17.84

vs $25.19 price

Levered DCF

$36.84

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

-0.43

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	11.89×	9.36×	7.53×	10.62×	19.08×	10.74×	10.2×	11.4×
P/B	1.15×	1.19×	1.19×	1.55×	0.76×	0.97×	1.45×	1.69×
P/S	2.59×	2.37×	2.15×	2.8×	2.68×	2.14×	2.69×	2.82×
EV / EBITDA	10.18×	6.88×	8.37×	8.74×	-5.46×	3.19×	10.17×	13.79×
Gross margin	78.1%	79.5%	82.4%	93.4%	91.0%	83.6%	86.3%	86.9%
Operating margin	27.9%	33.6%	38.8%	35.9%	19.6%	26.8%	34.7%	32.1%
Net margin	20.2%	25.4%	28.6%	26.4%	14.1%	19.9%	26.4%	24.8%
Current ratio	0.1×	0.36×	0.34×	0.37×	0.47×	0.37×	0.29×	0.29×
Debt / equity	0.38×	0.21×	0.89×	0.57×	0.4×	0.52×	0.74×	1.37×
Interest coverage	1.78×	2.01×	3.11×	8.87×	3.3×	3×	2.75×	2.63×
Dividend yield	1.2%	1.2%	1.3%	1.2%	1.2%	0.4%	0.3%	0.3%
Payout ratio	15.2%	11.0%	9.8%	13.2%	23.0%	4.3%	3.0%	3.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.0%	12.7%	15.9%	14.6%	4.0%	9.1%	14.2%	14.8%
Return on invested capital	-45.5%	9.7%	8.0%	8.7%	2.7%	5.5%	7.8%	6.1%
Return on assets	1.2%	1.5%	1.6%	1.1%	0.3%	0.9%	1.5%	1.3%
Free cash flow yield	11.5%	15.1%	15.1%	13.0%	7.6%	7.4%	12.0%	13.7%
Earnings yield	7.8%	10.7%	13.3%	9.4%	5.3%	9.3%	9.8%	8.8%
Enterprise value	$1.2B	$839.6M	$1.1B	$859.8M	-$172.9M	$129.8M	$557.9M	$644.6M
Net debt / EBITDA	1.76×	0.35×	3.15×	1.48×	-17.47×	-4.16×	2.83×	5.52×
Cash conversion cycle (days)	0	532	449	393	444	360	292	210