HTBK Valuation

Heritage Commerce Corp

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9.860

+0.17(1.754%)1D

Overview
Forecast
Valuation
Earnings

HTBK Relative Valuation

HTBK's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, HTBK is overvalued; if below, it's undervalued.

Historical Valuation

Heritage Commerce Corp (HTBK) is now in the Fair zone, suggesting that its current forward PE ratio of 11.65 is considered Fairly compared with the five-year average of 11.68. The fair price of Heritage Commerce Corp (HTBK) is between 8.17 to 11.48 according to relative valuation methord.

Relative Value

Fair Zone

8.17-11.48

Current Price：9.86

Fair

11.65

Trailing

Forward

0.00

EV/EBITDA

Heritage Commerce Corp. (HTBK) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.

NaN

EV/EBIT

Heritage Commerce Corp. (HTBK) has a current EV/EBIT of NaN. The 5-year average EV/EBIT is NaN. The thresholds are as follows: Strongly Undervalued below NaN, Undervalued between NaN and NaN, Fairly Valued between NaN and NaN, Overvalued between NaN and NaN, and Strongly Overvalued above NaN. The current Forward EV/EBIT of NaN falls within the range.

3.01

Heritage Commerce Corp. (HTBK) has a current PS of 3.01. The 5-year average PS is 3.42. The thresholds are as follows: Strongly Undervalued below 2.16, Undervalued between 2.16 and 2.79, Fairly Valued between 4.04 and 2.79, Overvalued between 4.04 and 4.67, and Strongly Overvalued above 4.67. The current Forward PS of 3.01 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

Heritage Commerce Corp. (HTBK) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.

0.00

P/FCF

Heritage Commerce Corp. (HTBK) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.

Heritage Commerce Corp (HTBK) has a current Price-to-Book (P/B) ratio of 0.86. Compared to its 3-year average P/B ratio of 0.90 , the current P/B ratio is approximately -5.17% higher. Relative to its 5-year average P/B ratio of 0.98, the current P/B ratio is about -12.46% higher. Heritage Commerce Corp (HTBK) has a Forward Free Cash Flow (FCF) yield of approximately 7.24%. Compared to its 3-year average FCF yield of 10.01%, the current FCF yield is approximately -27.62% lower. Relative to its 5-year average FCF yield of 9.60% , the current FCF yield is about -24.55% lower.

0.86

P/B

Median3y

0.90

Median5y

0.98

7.24

FCF Yield

Median3y

10.01

Median5y

9.60

Competitors Valuation Multiple

The average P/S ratio for HTBK's competitors is 2.72, providing a benchmark for relative valuation. Heritage Commerce Corp Corp (HTBK) exhibits a P/S ratio of 3.01, which is 10.57% above the industry average. Given its robust revenue growth of 14.62%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

HTBK.O

Heritage Commerce Corp

Midwestone Financial Group Inc (IOWA)

South Plains Financial Inc

Northpointe Bancshares Inc

2.13

558.08M

IBCP.O

Independent Bank Corp (Michigan)

3.16

3.50%

649.86M

Performance Decomposition

Market capitalization of HTBK decreased by 0.69% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 12.37 to 15.38.

The secondary factor is the Revenue Growth, contributed 14.62%to the performance.

Overall, the performance of HTBK in the past 1 year is driven by P/E Change. Which is more unsustainable.

14.62%

41.21M → 47.23M

Revenue Growth

-39.63%

22.41 → 13.53

Margin Expansion

24.32%

12.37 → 15.38

P/E Change

-0.69%