Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Independent BankIBCP +0.99%66 Intrinsic Value: DCF (Earnings Based) is $77.10 as of Sep. 08, 2026. GuruFocus rates IBCP with a GF Score™ of 66/100 and a GF Value™ of $33.28 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 666 Banks companies, Independent Bank ranks better than 66.82% on this metric.
Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's predictability rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.
The historical rank and industry rank for Independent Bank's Intrinsic Value: DCF (Earnings Based) or its related term are showing as below:
IBCP'
s Price-to-DCF (Earnings Based) Range Over the Past 10 Years
Min: 0.15 Med: 0.37 Max: 0.67
Current: 0.48
During the past 13 years, the highest Price-to-Intrinsic-Value-DCF (Earnings Based) Ratio of Independent Bank was 0.67. The lowest was 0.15. And the median was 0.37.
IBCP's Price-to-DCF (Earnings Based) is ranked better than 66.82% of 666
companies
in the Banks industry
Industry Median: 0.66
vs IBCP: 0.48
Independent Bank (NAS:IBCP) Intrinsic Value: DCF (Earnings Based) Explanation
Unlike valuation methods such as Net Current Asset Value, Tangible Book Value per Share, Graham Number, Median Ratio etc, discounted Cash Flow model evaluates the companies based on their future earnings power instead of their assets.
Be Aware
What you need to know about Discounted Earnings model:
1. The Discounted Earnings model evaluates a company based on its future earnings power
2. Growth is taken into account; therefore a faster growth company is worth more if everything else is the same.
3. Since we are projecting future growth, it is assumed that the company will grow at the same rate as it did during the past 10 years. Therefore this model works better for the companies that are relatively consistent performers.
4. The Discounted Earnings model works poorly for inconsistent performers like cyclicals.
5. Your expected return from the investment is a reasonable discount rate assumption.
6. A larger margin of safety should be required for companies with less predictable businesses.
You can screen for stocks that trade below their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) with the GuruFocus All-in-One Screener. Companies with a high Predictability Rank that trade at a discount to their Intrinsic Value: DCF (FCF Based) and Intrinsic Value: DCF (Earnings Based) can be found in the screen of Undervalued Predictable Companies.
Independent Bank Intrinsic Value: DCF (Earnings Based) Related Terms
Independent Bank Intrinsic Value: DCF (Earnings Based) Historical Data
* Premium members only.
The historical data trend for Independent Bank's Intrinsic Value: DCF (Earnings Based) can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Independent Bank Intrinsic Value: DCF (Earnings Based) Chart
For the Banks - Regional subindustry, Independent Bank's Price-to-DCF (Earnings Based), along with its competitors' market caps and Price-to-DCF (Earnings Based) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Independent Bank Price-to-DCF (Earnings Based) vs Banks Industry
For the Banks industry and Financial Services sector, Independent Bank's Price-to-DCF (Earnings Based) distribution charts can be found below:
* The bar in red indicates where Independent Bank's Price-to-DCF (Earnings Based) falls into.
Independent Bank Intrinsic Value: DCF (Earnings Based) Calculation
This is the intrinsic value calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow. This is the default method of calculation with GuruFocus DCF calculator.
Usually a two-stage model is used in calculating the intrinsic value with discounted cash flow model. The first stage is called growth stage; the second is called the terminal stage. In the growth stage the company grows at a faster rate. Because it cannot grow at that rate forever, a lower rate is used for the terminal stage.
GuruFocus DCF calculator is a two-stage model. The default values are defined as:
1. Discount Rate: d = 11% A reasonable discount rate assumption should be at least the long term average return of the stock market, which can be estimated from risk free rate plus risk premium of stock market. GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate and rounded up to the nearest integer. It is updated daily. The current risk-free rate is 4.78%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default. Then we added a risk premium of 6% to get the estimated discount rate. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 6% - 20%.
2. Growth Rate in the growth stage: g1 = 14.60%
The Growth Rate in the growth stage is initially set as the default 10-Year EPS without NRI Growth Rate. In cases where the 10-year growth rate is unavailable, it defaults to using the 5-Year EPS without NRI Growth Rate. If both the 10-year and 5-year growth rates are unavailable, the system defaults to the 3-Year EPS without NRI Growth Rate.
However, it's important to note that there is a growth rate range. If the calculated growth rate exceeds 20%, it will be capped at 20%. Conversely, if the calculated growth rate falls below 5%, it will be adjusted to 5% to maintain a reasonable range.
=>
Independent Bank's average EPS without NRI Growth Rate in the past
10 years was 14.60%,
which is between 5% and 20%. => GuruFocus defaults => Growth Rate: 14.60%
3. Years of Growth Stage: y1 = 10
4. Terminal Growth Rate: g2 = 4%
5. Years of Terminal Growth: y2 = 10
6. EPS without NRI: eps without nri = $3.544. GuruFocus DCF calculator is actually a Discounted Earnings calculator, EPS without NRI is used as the default. The reason we are doing this is we found that historically stock prices are more correlated with earnings than free cash flow.
All of the default settings can be changed and the results are calculated automatically.
Independent Bank's Intrinsic Value: DCF (Earnings Based) for today is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Intrinsic Value: DCF (Earnings Based) of $77.10 mean?
Independent Bank (IBCP) has a Intrinsic Value: DCF (Earnings Based) of $77.10 as of Sep. 08, 2026. Intrinsic Value: DCF (Earnings Based) is the stock value based on a two-stage discounted earnings model. View historical data on Independent Bank and its competitors. According to the industry distribution chart, Independent Bank ranks #221 out of 666 companies in the Banks industry, placing it in the top 33.2%.
Is Independent Bank's Intrinsic Value: DCF (Earnings Based) too high?
Independent Bank's current Intrinsic Value: DCF (Earnings Based) is $77.10. The Banks industry median Intrinsic Value: DCF (Earnings Based) is 0.66. Independent Bank's value of $77.10 is 11581.8% above this industry median. Based on the distribution chart, Independent Bank ranks #221 out of 666 companies in the Banks industry, which is above the industry midpoint. Overall, Independent Bank has a GF Score™ of 66/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Independent Bank's Intrinsic Value: DCF (Earnings Based) compare to SMBC and HBIA?
According to the Banks industry distribution chart, Independent Bank ranks #221 out of 666 companies for Intrinsic Value: DCF (Earnings Based). This puts Independent Bank in the upper half of its industry. The industry median Intrinsic Value: DCF (Earnings Based) is 0.66. Independent Bank's value of $77.10 is 11581.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: DCF (Earnings Based) for a Banks company?
The median Intrinsic Value: DCF (Earnings Based) among Banks companies is 0.66, based on 666 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: DCF (Earnings Based) significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: DCF (Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Independent Bank's current Intrinsic Value: DCF (Earnings Based) of $77.10 is 11581.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Intrinsic Value: DCF (Earnings Based) mean?
A high Intrinsic Value: DCF (Earnings Based) can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: DCF (Earnings Based) is the stock value based on a two-stage discounted earnings model. View historical data on Independent Bank and its competitors. For the Banks industry, the median Intrinsic Value: DCF (Earnings Based) is 0.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Independent Bank's current Intrinsic Value: DCF (Earnings Based) is $77.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Independent Bank stock overvalued right now?
Based on GuruFocus' analysis, Independent Bank (IBCP) is currently considered Modestly Overvalued. The stock's GF Value™ is $33.28, compared to a current price of $37.36 — trading 12.3% above its estimated fair value. The current Intrinsic Value: DCF (Earnings Based) is $77.10 and 11581.8% above the Banks industry median of 0.66. Independent Bank's overall GF Score™ is 66/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Intrinsic Value: DCF (Earnings Based) calculated?
Intrinsic Value: DCF (Earnings Based) is calculated from a company's financial statements. For Independent Bank (IBCP), the current Intrinsic Value: DCF (Earnings Based) is $77.10 as of Sep. 08, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Independent Bank (IBCP) Overvalued in 2026?
Based on GuruFocus' analysis, Independent Bank stock appears to be overvalued.
The current stock price of $37.36 is trading 12.3% above its estimated GF Value™ of $33.28.
GuruFocus considers Independent Bank to be Modestly Overvalued.
Key valuation signals for IBCP:
Intrinsic Value: DCF (Earnings Based): $77.10
GF Value™: $33.28 vs. price of $37.36 (12.3% above fair value)
Industry Position: 11581.8% above the Banks median (#221 of 666)
No single metric tells the full story. See the IBCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Independent Bank Corp. operates as a commercial bank. It offers a broad range of banking services to individuals and businesses, including checking and savings accounts, commercial lending, direct and indirect consumer financing, mortgage lending, and safe deposit box services. It also provides internet and mobile banking capabilities to its customers. The firm's principal markets are the rural and suburban communities across Lower Michigan. The firm generates the majority of its revenue from Interest and fees on loans.
66GF Score
Get the complete analysis for IBCP
Intrinsic Value: DCF (Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
IBCP has been successfully added to your 
