The estimated intrinsic value of Codorus Valley Bancorp, Inc. (CVLY) using a Book Value × Return on Equity (P/B × ROE) model is $43.99 (based on the recommended P/B × ROE method), compared to the current stock price of $24.04. This suggests the stock may be undervalued by 83.0% relative to its intrinsic value.

For banks and financial institutions, traditional DCF models are unreliable because cash flows are heavily influenced by lending and deposit activities. Instead, SharesGrow uses a Book Value × ROE model: Intrinsic Value = Book Value Per Share × (Return on Equity ÷ Cost of Equity) × Growth Adjustment. This approach values the firm based on how efficiently it generates returns on shareholders' equity relative to its cost of capital — the standard methodology used by institutional investors for bank valuation.

The valuation uses a CAPM-derived discount rate of 4.26% (CAPM-derived from beta of 0.55). For comparison, the standard 20-year DCF model produces: Operating Cash Flow (OCF): $178.97 | Free Cash Flow (FCF): $78.73 | Net Income (NI): $649.02.