Market Pulse44Neutral

First BanCorp.Opportunity Rank #48(FBP) Intrinsic Value & DCF Analysis (2026)

Current Price

$25.74

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$25.74
Price
$29.29
Intrinsic Value
Undervalued by 14%MOS: $23.43

Fundamental Score

81/100
Bullish

Weighted across 6 signals

Narrative Score

51/100
Weak

No change vs previous

Trend Score

79/100
Strong

As of 2026-06-22

The intrinsic value of First BanCorp. (FBP) is estimated at $29.29 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $25.74, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 3.29% long-term growth rate and a 13.70% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of First BanCorp. (FBP) is estimated at $29.29 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $25.74, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 3.29% long-term growth rate and a 13.70% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$29.29
13.79% upside
20% margin of safety: $23.43
Years: 10Growth Rate: 3.29%
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Capital Efficiency

Average Quarterly ROIC
17.26%
Cost of Capital (estimated)11%
Value StatusCreating Value

The company is earning a higher return on invested capital than it costs to raise that capital — a sign of strong, efficient value creation.

Complete historical ROIC is available with
.

Fundamental Details

81/100
BullishWeighted across 6 signals
DCF Discount
13.8% discount to price
73
FCF Yield
11.9% trailing FCF yield
100
ROIC vs WACC
ROIC 17.3% vs WACC 11.0% (1.6x)
78
Net Debt / FCF
Net cash position
100
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
8.5% 5Y FCF CAGR
68
Strengths lead the score: DCF Discount, FCF Yield.

Narrative Details

51/100
Weak
Vs 6-Month Baseline:Below Avg (25th pct)Weighted across 4 recent drivers
Trend: StableConfidence: 66%Updated: 4h ago
Sources: 17 (11 News · 6 Analyst)
Drivers(last 30 days)
3 regulatory scrutiny+0.1
8 news sentiment+0.1
Analyst upgrades+0.0
5 analyst reiterations0.0

Trend Details

79/100
StrongAs of 2026-06-22308 daily bars used
Distance from 52-Week High0.0%
3M Relative Strength vs SPY+10.4%
Price vs 50 EMA+7.5%
Price vs 21 EMA74 · +4.3%
Price vs 50 EMA81 · +7.5%
21 EMA vs 50 EMA73 · +3.0%
3M RS vs SPY85 · +10.4%
6M RS vs SPY69 · +7.3%
Distance from 52W High100 · 0.0%

Investment Coach

Updating... 12d ago
BUYConfidence: 76%
Thesis
First BanCorp. presents a compelling investment opportunity with a strong fundamental score of 82 and a valuation implying a 17% upside. Its ROIC significantly exceeds the cost of capital by 6.3 percentage points, supported by a healthy free cash flow yield of 12.3%.
Key Risk
The key risk is a potential decline in ROIC below the cost of capital, which could undermine valuation and returns.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Confirm ROIC stays above cost of capital over coming quarters.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 3.29%5 Year CAGR: 2.72%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102009200820072006
$472$456$414$386$461$413$314$317$309$245$210$274$287$353$241$170$269$284$209$85$277

How Intrinziq Estimates Fair Value

Intrinziq estimates First BanCorp.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

First BanCorp.Financial Services

First BanCorp., operating as the holding company for FirstBank Puerto Rico, delivers a broad spectrum of financial services to retail, commercial, and institutional clients. The company's operations are structured into six key segments: Commercial and Corporate Banking, Mortgage Banking, Consumer (Retail) Banking, Treasury and Investments, United States Operations, and Virgin Islands Operations. The Commercial and Corporate Banking segment offers business financing, including commercial real estate, construction, and floor plan loans, alongside treasury and cash management services. Mortgage Banking handles the origination, sale, and servicing of residential mortgage loans, in addition to acquiring and selling mortgages in secondary markets. The Consumer (Retail) Banking segment provides personal financial products such as auto, boat, credit card, and personal loans, lines of credit, and various deposit accounts like checking, savings, IRAs, and retail CDs, complemented by finance leasing and insurance agency services. The Treasury and Investments segment is responsible for funding and liquidity management. Its United States Operations offer a range of deposit products, including checking, savings, money market accounts, and retail CDs, along with traditional commercial and industrial and commercial real estate loans, and digital services such as internet banking and cash management. Lastly, the Virgin Islands Operations concentrate on consumer and commercial lending as well as deposit-taking activities. First BanCorp. boasts an extensive branch network, comprising 64 locations in Puerto Rico, 8 in the U.S. and British Virgin Islands, and 11 branches in Florida. Established in 1948, the company is headquartered in San Juan, Puerto Rico.