NBT Bancorp Inc. (NBTB)
DCF Valuation•Discounted Cash Flow intrinsic value with Bear, Base & Bull scenarios
Wide range: intrinsic value is highly sensitive to assumptions — use the scenario analysis to anchor your view.
The current valuation implies investors expect stronger future growth or wider margins than assumed in the base-case scenario.
Confidence reflects data quality, how well the model fits the business, and how much of the value depends on far-future assumptions.
Wide range: intrinsic value is highly sensitive to assumptions — use the scenario analysis to anchor your view.
Analyze the Bear, Base, and Bull case DCF scenarios. Compare how changes in revenue growth, operating margins, and cost of equity (ke) impact the final intrinsic value estimate and downside risk.
Why the values can still move a lot: when much of fair value sits in later years, even a 1-2 point change in Cost of Equity (Ke) or terminal assumptions can create a large spread.
The forecast driving our intrinsic value estimate.
Cost of Equity (Ke)
9.6%
Terminal ROE
9.2%
Earnings Growth (Y1-Y5)
5.5%
Return on Equity (ROE) (Y1-Y5)
--
Shares
52.2M
Detailed cash-flow bridge rows are not available in this snapshot.
| Period | Growth | Op Margin |
|---|---|---|
| Year 1 | -- | -- |
| Year 2 | 5.6% | -- |
| Year 3 | 5.6% | -- |
| Year 4 | 5.6% | -- |
| Year 5 | 5.3% | -- |
| Year 6 | 5.3% | -- |
| Year 7 | 5.3% | -- |
| Year 8 | 5.3% | -- |
| Year 9 | 5.3% | -- |
| Year 10 | 5.3% | -- |
Same DCF model applied to every company. If NBTB's gap to fair value stands apart from peers, the case is stock-specific — not a sector-wide trend.
| Company | Peer Type | Mkt Cap | Price | Intrinsic Value | Upside / Premium | Status |
|---|---|---|---|---|---|---|
| NBTBNBT Bancorp Inc.You are here | Subject | — | $46.68 | $35.26 | -24% | Overvalued |
| Core | $1.6B | $32.45 | $18.22 | -44% | Overvalued | |
| Core | $2.6B | $44.67 | $40.77 | -9% | Fair Value | |
| Core | $3.5B | $36.29 | $29.37 | -19% | Overvalued | |
| Core | $4.4B | $22.90 | $20.12 | -12% | Fair Value | |
| Core | $8.0B | $54.73 | $73.95 | +35% | Undervalued | |
| Core | $706M | $34.31 | — | — | — | |
| Core | $4.4B | $80.46 | $67.46 | -16% | Overvalued |
Differences in intrinsic value reflect differences in each company's financial data and business model — not inconsistency in the methodology. Peer rows without DCF coverage show “—”.
Answers to common questions about NBTB's valuation and our methodology.
The base-case intrinsic value for NBTB is estimated at $35.26. This is calculated using a Discounted Cash Flow (DCF) model that projects future cash flows and discounts them to today's present value.
Based on our DCF valuation, NBT Bancorp Inc. appears overvalued. The stock is currently trading at $46.68, compared to our fair value estimate of $35.26.
Under our base-case scenario, NBTB has an implied 24% downside risk. In our bull-case scenario, the intrinsic value could be significantly higher if growth and margins exceed baseline expectations.
We apply a discount rate (Cost of Equity (Ke)) of 9.6% to calculate the present value of NBTB's future cash flows. This rate reflects the perceived risk and cost of capital for the business.
The model assumes a consensus-driven baseline growth rate for the next 5 years, which gradually tapers down to a terminal growth rate of 2.5%. The exact rates flex depending on whether you are viewing the bear, base, or bull scenario.
This valuation projects future owner earnings and discounts them back to present value using a Cost of Equity (Ke). For enterprise models, we then adjust for net debt and divide by diluted shares to calculate the final equity value per share.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. Intrinsic value estimates are model outputs under stated assumptions and should not be relied upon as the sole basis for any investment decision.
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