TowneBank (TOWN) 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

-52.8%

$17.53

vs $37.12 price

Levered DCF

$29.32

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.32

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	15.03×	15.77×	14.45×	11.86×	10.64×	11.68×	14.41×	12.74×
P/B	1.06×	1.19×	1.09×	1.19×	1.21×	0.96×	1.22×	1.12×
P/S	2.54×	2.49×	2.36×	3.01×	3.18×	2.29×	2.98×	2.78×
EV / EBITDA	10.69×	6.69×	7.19×	5.28×	-1.7×	2.63×	11.35×	10.52×
Gross margin	69.6%	67.6%	71.8%	91.2%	96.6%	80.2%	82.3%	85.4%
Operating margin	20.9%	18.6%	19.8%	31.9%	38.9%	27.1%	26.2%	28.1%
Net margin	16.8%	15.8%	16.3%	25.4%	29.9%	19.6%	20.6%	21.8%
Current ratio	0.1×	0.1×	0.23×	0.22×	0.37×	0.28×	0.2×	0.21×
Debt / equity	0.15×	0.14×	0.24×	0.17×	0.25×	0.44×	0.47×	0.72×
Interest coverage	0.74×	0.57×	0.75×	4.19×	6.81×	2.52×	1.61×	2.13×
Dividend yield	3.1%	2.9%	3.2%	2.8%	2.4%	3.1%	2.5%	2.6%
Payout ratio	46.8%	46.4%	46.4%	33.2%	25.7%	35.9%	35.6%	33.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.0%	7.6%	7.5%	10.1%	11.3%	8.2%	8.5%	8.8%
Return on invested capital	2.7%	5.8%	5.3%	7.5%	8.1%	5.5%	5.4%	4.9%
Return on assets	0.9%	0.9%	0.9%	1.2%	1.3%	1.0%	1.2%	1.2%
Free cash flow yield	8.3%	3.2%	5.3%	16.2%	21.3%	4.8%	-1.3%	17.4%
Earnings yield	6.6%	6.3%	6.9%	8.4%	9.4%	8.6%	6.9%	7.9%
Enterprise value	$2.7B	$1.5B	$1.6B	$1.4B	-$525.2M	$606.1M	$2.3B	$2.1B
Net debt / EBITDA	0.47×	-4.62×	-2.88×	-3.14×	-9.12×	-4.74×	1.6×	2.03×
Cash conversion cycle (days)	0	0	0	0	0	0	0	0