The estimated intrinsic value of UP Fintech Holding Ltd. Sponsored ADR Class A (TIGR) using a Book Value × Return on Equity (P/B × ROE) model is $5.84 (based on the recommended P/B × ROE method), compared to the current stock price of $7.03. This suggests the stock may be overvalued by 16.9% 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 6.74% (CAPM-derived from beta of 0.59). For comparison, the standard 20-year DCF model produces: Operating Cash Flow (OCF): $128.26 | Free Cash Flow (FCF): $128.07 | Net Income (NI): $43.98.

• Stock-Based Compensation (SBC) inflates Operating Cash Flow. This company's OCF is more than double its Net Income, while Free Cash Flow is close to OCF (low CapEx). The large OCF-to-NI gap is primarily from Stock-Based Compensation being added back to OCF. SBC is a real cost — it dilutes shareholders by issuing new shares. Our DCF model uses Net Income as the base instead of OCF, which accounts for the true dilution cost. If you see the OCF method showing a much higher IV, this is why — it overstates value by ignoring SBC dilution.
• Using Trailing Twelve Months (TTM) data. Our model is using the most recent four quarters of data, which may not yet reflect the full earnings trajectory that analysts are forecasting. If the company is in a growth phase, TTM cash flows may understate future potential.