3 models fit TowneBank Common Stock and they agree: 3 of 3 land within 15% of the average.
Two or more of our models back this value.
Near fair value(i)Bronze50
Valued as a bank: Residual income, P/E comparison, Dividend discount, and Graham number.
ACCE opinionTowneBank Common Stock (TOWN)
Fair value (3 models)
$37.96
ACCE price target
$36.00
Rating
Fairly valued
Horizon
12 months
Fair value published on 17 Oct 2026, 00:00 CEST; previously $37.51 since 12 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Price used: $36.61 at the close on 23 Oct 2026, 22:00 CEST.
Models: Dividend discount, Graham number, P/E comparison, and Residual income.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
3.5% below
+3.7% to fair value
ACCE score
78
out of 100
Analysts
50% buy
4 covering
P/E
18.4x
forward 10.3x
1-year return
+11.6%
Dividend yield
2.99%
TowneBank Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
TowneBank is a Suffolk, Virginia-based regional bank whose core business is commercial and retail lending, deposit gathering, and wealth management and insurance services across Virginia, North Carolina and South Carolina. Its edge is a deep franchise in the Hampton Roads and Richmond corridors, where a diversified fee base outside pure net interest income has helped keep returns steady through rate cycles. The reported 117.8% revenue growth is a very high figure and should be read with caution, since it likely reflects acquisition effects or a changing revenue definition rather than organic loan growth, so the first task is to confirm what drove it. At a 17.6 trailing P/E against a 12.5 forward P/E, the market is pricing in a meaningful earnings step-up, which makes the 12.2% ROE and the expected earnings trajectory the key items to test against peers. Worth a deeper look if the revenue jump is mainly acquisition-driven and organic net interest margin and credit quality are holding up.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Margin figures look distorted
Gross margin of +100.0% and EV/EBITDA of 0.0 are not meaningful for a bank, so the profitability and valuation readouts here should be read with caution.
moderate
Growth rate flattered by base effect
Earnings growth of +285.7% and revenue growth of +117.8% YoY likely reflect an unusually weak prior period rather than a sustained trend; the 5y revenue CAGR of +6.3% is the steadier figure.
AI research notes
AI-assisted·How I use AIWritten Oct 17, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Forward P/E of 12.5x sits just above the sector median of 11.7x, a modest premium for a bank with a 3.1% dividend yield.
Free cash flow of $212M over the last twelve months gives a 6.6% yield, which is a cash return the business is actually generating.
Net margin of 28.6% and a debt to equity ratio of 0.15 show a profitable business that is lightly borrowed.
Why it could disappoint
The 117.8% revenue jump reflects a merger, so the headline growth figure flatters the underlying trend, which averages 6.3% a year.
Return on equity of 12.2% and return on invested capital of 5.0% are modest returns on the capital the bank deploys.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Oct 28, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where TOWN's valuation models land
Price
$36.61
Model fair value
$37.96
Model range
$36.57 to $39.73
Fair value $37.96
Price $36.61
The price sits inside the model range.
Model
Fair value
Upside
Dividend discount
Graham number
P/E comparison
Residual income
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Quality
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Quality and conviction INVESTOR FEATURE
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