First Interstate BancSystem, Inc.

FIBK

Financial ServicesBanks - RegionalNASDAQ

$36.42

Market Cap: $3.55B

First Interstate BancSystem, Inc. (FIBK) Valuation Summary

Updated May 10, 2026 15:56

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$113.47 – $301.49	$159.65	+338.4%
Growth Exit 10Y	$117.53 – $289.73	$160.57	+340.9%
EBITDA Exit 5Y	$75.85 – $128.24	$99.90	+174.3%
EBITDA Exit 10Y	$98.20 – $167.52	$127.96	+251.3%
▸ Trading Multiples
P/E	$32.86 – $51.63	$33.37	-8.4%
EV/EBITDA	$30.49 – $51.54	$48.33	+32.7%
EV/Revenue	$24.04 – $30.01	$35.29	-3.1%
▸ PEG
PEG Fair Value	$21.44 – $21.44	$21.44	-41.1%
▸ Earnings Power Value
Earnings Power Value	$37.62 – $55.80	$45.08	+23.8%
▸ Dividend Discount
Dividend Discount	$30.96 – $84.23	$46.99	+29.0%

Valuation History

DCF Analysis

Fair Value

$159.65

Market Price

$36.42

Upside / Downside

+338.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project First Interstate BancSystem, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -5.7% to 12.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 32, DPO 5562, DIO 60). At a 8.4% WACC with mid-year discounting, the terminal value (69% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $159.65 per share, suggesting FIBK is undervalued by 338.4% at the current price of $36.42.

FCFF Present Value Calculation

WACC

8.38%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	310	325	338	381	429	440
(−) Net Interest	206	216	224	253	285	292
(+) D&A	20	21	23	21	21	21
EBITDA	536	563	585	655	735	753

(−) Tax	70	74	77	86	97	100
(−) CapEx	17	18	19	21	24	24
(−) ΔWC	-2,542	-119	-99	-338	-380	-390
Free Cash Flow (FCFF)	2,991	590	588	885	994	1,019

Terminal Value						17,339
WACC / Discount Rate	8.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	2,873	523	481	668	692	11,598

Enterprise Value	16,835
Projection Period	5,237	31.1%
Terminal Value	11,598	68.9%

(−) Current Net Debt	418

Equity Value	16,417
(/) Outstanding Shares	103

Fair Price	$159.65

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.4%	$198	$215	$236	$264	$301
7.4%	$166	$177	$190	$206	$227
8.4%	$143	$151	$160	$170	$183
9.4%	$126	$132	$138	$145	$154
10.4%	$113	$118	$122	$127	$133

Current price: $36.42. Green = undervalued, Red = overvalued.

Fair Value

$160.57

Market Price

$36.42

Upside / Downside

+340.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project First Interstate BancSystem, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -5.7% to 4.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 32, DPO 5562, DIO 60). At a 8.4% WACC with mid-year discounting, the terminal value (51% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $160.57 per share, suggesting FIBK is undervalued by 340.9% at the current price of $36.42.

FCFF Present Value Calculation

WACC

8.38%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	310	325	338	381	429	477	522	563	598	626	641
(−) Net Interest	206	216	224	253	285	317	346	374	397	415	426
(+) D&A	20	21	23	21	21	20	22	24	26	29	29
EBITDA	536	563	585	655	735	813	890	960	1,021	1,070	1,096

(−) Tax	70	74	77	86	97	108	118	128	136	142	146
(−) CapEx	17	18	19	21	24	26	29	31	33	35	36
(−) ΔWC	-2,542	-119	-99	-338	-380	-374	-355	-322	-276	-217	-223
Free Cash Flow (FCFF)	2,991	590	588	885	994	1,053	1,098	1,124	1,128	1,110	1,138

Terminal Value											19,365
WACC / Discount Rate	8.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	2,873	523	481	668	692	676	651	615	570	517	8,664

Enterprise Value	16,929
Projection Period	8,265	48.8%
Terminal Value	8,664	51.2%

(−) Current Net Debt	418

Equity Value	16,511
(/) Outstanding Shares	103

Fair Price	$160.57

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.4%	$205	$219	$236	$259	$290
7.4%	$172	$180	$191	$203	$219
8.4%	$148	$154	$161	$168	$178
9.4%	$131	$135	$139	$144	$150
10.4%	$118	$120	$123	$127	$131

Current price: $36.42. Green = undervalued, Red = overvalued.

Fair Value

$99.91

Market Price

$36.42

Upside / Downside

+174.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project First Interstate BancSystem, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -5.7% to 12.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 32, DPO 5562, DIO 60). At a 8.4% WACC with mid-year discounting, the terminal value (51% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $99.90 per share, suggesting FIBK is undervalued by 174.3% at the current price of $36.42.

FCFF Present Value Calculation

WACC

8.38%

3% – 20%

EV/EBITDA Exit Multiple

10.83x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	310	325	338	381	429	440
(−) Net Interest	206	216	224	253	285	292
(+) D&A	20	21	23	21	21	21
EBITDA	536	563	585	655	735	753

(−) Tax	70	74	77	86	97	—
(−) CapEx	17	18	19	21	24	—
(−) ΔWC	-2,542	-119	-99	-338	-380	—
Free Cash Flow (FCF)	2,991	590	588	885	994	—

Peers' EBITDA Multiple						10.8x
Terminal Value						8,156
WACC / Discount Rate	8.38%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	2,873	523	481	668	692	5,455

Enterprise Value	10,692
Projection Period	5,237	49.0%
Terminal Value	5,455	51.0%

(−) Current Net Debt	418
Equity Value	10,274
(÷) Outstanding Shares	103M
Fair Price	$100	+174.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.8x	8.8x	10.8x	12.8x	14.8x
6.4%	$85	$96	$107	$117	$128
7.4%	$83	$93	$103	$113	$124
8.4%	$80	$90	$100	$110	$119
9.4%	$78	$87	$97	$106	$115
10.4%	$76	$85	$94	$103	$112

Current price: $36.42. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$127.97

Market Price

$36.42

Upside / Downside

+251.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project First Interstate BancSystem, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -5.7% to 4.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 32, DPO 5562, DIO 60). At a 8.4% WACC with mid-year discounting, the terminal value (39% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $127.96 per share, suggesting FIBK is undervalued by 251.3% at the current price of $36.42.

FCFF Present Value Calculation

WACC

8.38%

3% – 20%

EV/EBITDA Exit Multiple

10.83x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	310	325	338	381	429	477	522	563	598	626	641
(−) Net Interest	206	216	224	253	285	317	346	374	397	415	426
(+) D&A	20	21	23	21	21	20	22	24	26	29	29
EBITDA	536	563	585	655	735	813	890	960	1,021	1,070	1,096

(−) Tax	70	74	77	86	97	108	118	128	136	142	—
(−) CapEx	17	18	19	21	24	26	29	31	33	35	—
(−) ΔWC	-2,542	-119	-99	-338	-380	-374	-355	-322	-276	-217	—
Free Cash Flow (FCF)	2,991	590	588	885	994	1,053	1,098	1,124	1,128	1,110	—

Peers' EBITDA Multiple											10.8x
Terminal Value											11,873
WACC / Discount Rate	8.38%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	2,873	523	481	668	692	676	651	615	570	517	5,312

Enterprise Value	13,577
Projection Period	8,265	60.9%
Terminal Value	5,312	39.1%

(−) Current Net Debt	418
Equity Value	13,159
(÷) Outstanding Shares	103M
Fair Price	$128	+251.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.8x	8.8x	10.8x	12.8x	14.8x
6.4%	$122	$133	$145	$156	$168
7.4%	$115	$125	$136	$146	$157
8.4%	$109	$118	$128	$137	$147
9.4%	$103	$112	$121	$129	$138
10.4%	$98	$106	$114	$122	$130

Current price: $36.42. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$33.37

Market Price

$36.42

Upside / Downside

-8.4%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), First Interstate BancSystem, Inc. (FIBK) has a fair value of $33.37 based on 9 comparable companies in the Banks - Regional industry.

P/E Valuation — Banks - Regional

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
First Interstate BancSystem, Inc.FIBK	3,745	12.4x	17.1x
Webster Financial CorporationWBS	11,778	12.3x	13.9x
Associated Banc-CorpASB	4,738	10.3x	24.2x
Banco Macro S.A.BMA	4,698	20.4x	0.0x
Fulton Financial CorporationFULT	4,138	10.3x	12.7x
Cathay General BancorpCATY	3,848	12.7x	12.7x
Independent Bank Corp.INDB	3,798	17.6x	15.7x
Renasant CorporationRNST	3,783	19.4x	15.2x
First BanCorp.FBP	3,745	11.2x	13.1x
WesBanco, Inc.WSBC	3,289	15.1x	16.1x
Industry Median		12.7x	13.9x
(*) Profit after tax		302	219
Equity Value		3,823	3,040
(/) Outstanding shares		103	103
Fair Price		$37	$30

Selected Fair Value (avg of trailing + forward)

$33.37

-8.4%

Fair Value

$48.33

Market Price

$36.42

Upside / Downside

+32.7%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), First Interstate BancSystem, Inc. (FIBK) has a fair value of $48.33 based on 9 comparable companies in the Banks - Regional industry.

EV/EBITDA Valuation — Banks - Regional

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
First Interstate BancSystem, Inc.FIBK	3,745	10.6x	11.4x
Webster Financial CorporationWBS	11,778	10.8x	17.8x
Associated Banc-CorpASB	4,738	14.4x	35.5x
Banco Macro S.A.BMA	4,698	6.9x	0.0x
Fulton Financial CorporationFULT	4,138	9.8x	17.1x
Cathay General BancorpCATY	3,848	9.1x	16.6x
Independent Bank Corp.INDB	3,798	14.6x	25.1x
Renasant CorporationRNST	3,783	15.5x	35.7x
First BanCorp.FBP	3,745	8.3x	11.9x
WesBanco, Inc.WSBC	3,289	15.3x	38.9x
Industry Median		10.8x	17.8x
(*) EBITDA		392	367
= Enterprise Value		4,241	6,533
(-) Net Debt		418	418
Equity Value		3,824	6,115
(/) Outstanding shares		103	103
Fair Price		$37	$59

Selected Fair Value (avg of trailing + forward)

$48.33

+32.7%

Fair Value

$35.29

Market Price

$36.42

Upside / Downside

-3.1%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), First Interstate BancSystem, Inc. (FIBK) has a fair value of $35.29 based on 9 comparable companies in the Banks - Regional industry.

EV/Revenue Valuation — Banks - Regional

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
First Interstate BancSystem, Inc.FIBK	3,745	3.9x	4.2x
Webster Financial CorporationWBS	11,778	3.1x	5.1x
Associated Banc-CorpASB	4,738	3.4x	8.4x
Banco Macro S.A.BMA	4,698	0.8x	0.0x
Fulton Financial CorporationFULT	4,138	2.7x	4.8x
Cathay General BancorpCATY	3,848	2.8x	5.2x
Independent Bank Corp.INDB	3,798	3.8x	6.6x
Renasant CorporationRNST	3,783	2.6x	6.0x
First BanCorp.FBP	3,745	2.7x	3.9x
WesBanco, Inc.WSBC	3,289	3.3x	8.4x
Industry Median		2.8x	5.2x
(*) Revenue		1,058	991
= Enterprise Value		2,988	5,105
(-) Net Debt		418	418
Equity Value		2,571	4,688
(/) Outstanding shares		103	103
Fair Price		$25	$46

Selected Fair Value (avg of trailing + forward)

$35.29

-3.1%

PEG Fair Value

Fair Value

$21.44

Market Price

$36.42

Upside / Downside

-41.1%

Verdict

Overvalued

Using the PEG framework with analyst consensus forward EPS growth of 8.0% plus 5.5% dividend yield, the company has a fair value of $21.44 based on NTM EPS (FY2026) of $2.68. The current PEG ratio is 2.16.

PEG Ratio

2.16Expensive

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 13.6 ÷ (0.8% + 5.5%) = 2.16

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Slow GrowerPEG less reliable

PEG tends to undervalue slow growers — consider dividend yield and asset value instead.

Fair Value Calculation

EPS Growth RateForward	0.8%
Dividend Yield	+5.5%
Adjusted Growth (clamped 8–25%)Clamped	8.0%
Fair P/E	8.0x
NTM EPS (FY2026)	$2.68
Fair Value	$21.44

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$2.94	—	—
FY2026E	$2.68	-8.9%	4
FY2027E	$2.99	+11.5%	4

2Y Forward EPS CAGR: 0.8%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$192.1M	$3.11	—
FY2022	$202.2M	$1.96	-37.0%
FY2023	$257.5M	$2.48	+26.5%
FY2024	$226.0M	$2.19	-11.7%
FY2025	$302.1M	$2.94	+34.2%

4Y Historical EPS CAGR: -1.4%

Earnings Power Value

Fair Value

$45.08

Market Price

$36.42

Upside / Downside

+23.8%

Verdict

Undervalued

Using the Earnings Power Value framework with a WACC of 8.4% and normalized earnings of $423.2M, the company has a fair value of $45.08 per share. The EPV range is $37.62 – $55.80 based on WACC sensitivity (6.9% – 9.9%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	423	423	423
(/) WACC	9.9%	8.4%	6.9%
Enterprise Value	4,286	5,053	6,156
(-) Net debt	418	418	418
Equity Value	3,868	4,636	5,738
(/) Outstanding shares	103	103	103
Fair Price	$37.62	$45.08	$55.80

Dividend Discount Model

Fair Value

$46.99

Market Price

$36.42

Upside / Downside

+29.0%

Verdict

Undervalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 7.7% and projected dividend growth of 7.7%, the fair value is $46.99 per share. The DDM range is $30.96 – $84.23 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$1.89

Dividend Yield

5.47%

Payout Ratio

64.3%

Dividend Coverage

1.55x

FCF Payout Ratio69.9%

DPS CAGR (4Y)3.5%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.89	64.3%	-0.5%
2024	$1.90	86.7%	+1.0%
2023	$1.88	75.8%	+6.7%
2022	$1.76	90.1%	+7.1%
2021	$1.65	52.9%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$2.04	7.7%	0.9287	$1.89
2027	$2.19	7.7%	0.8625	$1.89
2028	$2.36	7.7%	0.8010	$1.89
2029	$2.55	7.7%	0.7439	$1.89
2030	$2.74	7.7%	0.6908	$1.90
Terminal Value	$2.81 DPS	2.5%		$37.53

PV of Projected Dividends$9.47

PV of Terminal Value$37.53

Fair Value per Share$46.99

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	5.7%	6.7%	7.7%	8.7%	9.7%
5.7%	$71	$74	$77	$81	$84
6.7%	$54	$56	$58	$61	$64
7.7%	$43	$45	$47	$49	$51
8.7%	$36	$38	$39	$41	$43
9.7%	$31	$32	$34	$35	$37

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

First Interstate BancSystem, Inc. (FIBK) Valuation Summary

Updated May 10, 2026 15:56

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$113.47 – $301.49	$159.65	+338.4%
Growth Exit 10Y	$117.53 – $289.73	$160.57	+340.9%
EBITDA Exit 5Y	$75.85 – $128.24	$99.90	+174.3%
EBITDA Exit 10Y	$98.20 – $167.52	$127.96	+251.3%
▸ Trading Multiples
P/E	$32.86 – $51.63	$33.37	-8.4%
EV/EBITDA	$30.49 – $51.54	$48.33	+32.7%
EV/Revenue	$24.04 – $30.01	$35.29	-3.1%
▸ PEG
PEG Fair Value	$21.44 – $21.44	$21.44	-41.1%
▸ Earnings Power Value
Earnings Power Value	$37.62 – $55.80	$45.08	+23.8%
▸ Dividend Discount
Dividend Discount	$30.96 – $84.23	$46.99	+29.0%

Valuation History

DCF Analysis

Fair Value

$159.65

Market Price

$36.42

Upside / Downside

+338.4%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

8.38%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	310	325	338	381	429	440
(−) Net Interest	206	216	224	253	285	292
(+) D&A	20	21	23	21	21	21
EBITDA	536	563	585	655	735	753

(−) Tax	70	74	77	86	97	100
(−) CapEx	17	18	19	21	24	24
(−) ΔWC	-2,542	-119	-99	-338	-380	-390
Free Cash Flow (FCFF)	2,991	590	588	885	994	1,019

Terminal Value						17,339
WACC / Discount Rate	8.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	2,873	523	481	668	692	11,598

Enterprise Value	16,835
Projection Period	5,237	31.1%
Terminal Value	11,598	68.9%

(−) Current Net Debt	418

Equity Value	16,417
(/) Outstanding Shares	103

Fair Price	$159.65

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.4%	$198	$215	$236	$264	$301
7.4%	$166	$177	$190	$206	$227
8.4%	$143	$151	$160	$170	$183
9.4%	$126	$132	$138	$145	$154
10.4%	$113	$118	$122	$127	$133

Current price: $36.42. Green = undervalued, Red = overvalued.

Fair Value

$160.57

Market Price

$36.42

Upside / Downside

+340.9%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

8.38%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	310	325	338	381	429	477	522	563	598	626	641
(−) Net Interest	206	216	224	253	285	317	346	374	397	415	426
(+) D&A	20	21	23	21	21	20	22	24	26	29	29
EBITDA	536	563	585	655	735	813	890	960	1,021	1,070	1,096

(−) Tax	70	74	77	86	97	108	118	128	136	142	146
(−) CapEx	17	18	19	21	24	26	29	31	33	35	36
(−) ΔWC	-2,542	-119	-99	-338	-380	-374	-355	-322	-276	-217	-223
Free Cash Flow (FCFF)	2,991	590	588	885	994	1,053	1,098	1,124	1,128	1,110	1,138

Terminal Value											19,365
WACC / Discount Rate	8.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	2,873	523	481	668	692	676	651	615	570	517	8,664

Enterprise Value	16,929
Projection Period	8,265	48.8%
Terminal Value	8,664	51.2%

(−) Current Net Debt	418

Equity Value	16,511
(/) Outstanding Shares	103

Fair Price	$160.57

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
6.4%	$205	$219	$236	$259	$290
7.4%	$172	$180	$191	$203	$219
8.4%	$148	$154	$161	$168	$178
9.4%	$131	$135	$139	$144	$150
10.4%	$118	$120	$123	$127	$131

Current price: $36.42. Green = undervalued, Red = overvalued.

Fair Value

$99.91

Market Price

$36.42

Upside / Downside

+174.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project First Interstate BancSystem, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -5.7% to 12.7% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 32, DPO 5562, DIO 60). At a 8.4% WACC with mid-year discounting, the terminal value (51% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $99.90 per share, suggesting FIBK is undervalued by 174.3% at the current price of $36.42.

FCFF Present Value Calculation

WACC

8.38%

3% – 20%

EV/EBITDA Exit Multiple

10.83x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	310	325	338	381	429	440
(−) Net Interest	206	216	224	253	285	292
(+) D&A	20	21	23	21	21	21
EBITDA	536	563	585	655	735	753

(−) Tax	70	74	77	86	97	—
(−) CapEx	17	18	19	21	24	—
(−) ΔWC	-2,542	-119	-99	-338	-380	—
Free Cash Flow (FCF)	2,991	590	588	885	994	—

Peers' EBITDA Multiple						10.8x
Terminal Value						8,156
WACC / Discount Rate	8.38%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	2,873	523	481	668	692	5,455

Enterprise Value	10,692
Projection Period	5,237	49.0%
Terminal Value	5,455	51.0%

(−) Current Net Debt	418
Equity Value	10,274
(÷) Outstanding Shares	103M
Fair Price	$100	+174.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.8x	8.8x	10.8x	12.8x	14.8x
6.4%	$85	$96	$107	$117	$128
7.4%	$83	$93	$103	$113	$124
8.4%	$80	$90	$100	$110	$119
9.4%	$78	$87	$97	$106	$115
10.4%	$76	$85	$94	$103	$112

Current price: $36.42. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$127.97

Market Price

$36.42

Upside / Downside

+251.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project First Interstate BancSystem, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from -5.7% to 4.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 32, DPO 5562, DIO 60). At a 8.4% WACC with mid-year discounting, the terminal value (39% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $127.96 per share, suggesting FIBK is undervalued by 251.3% at the current price of $36.42.

FCFF Present Value Calculation

WACC

8.38%

3% – 20%

EV/EBITDA Exit Multiple

10.83x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	310	325	338	381	429	477	522	563	598	626	641
(−) Net Interest	206	216	224	253	285	317	346	374	397	415	426
(+) D&A	20	21	23	21	21	20	22	24	26	29	29
EBITDA	536	563	585	655	735	813	890	960	1,021	1,070	1,096

(−) Tax	70	74	77	86	97	108	118	128	136	142	—
(−) CapEx	17	18	19	21	24	26	29	31	33	35	—
(−) ΔWC	-2,542	-119	-99	-338	-380	-374	-355	-322	-276	-217	—
Free Cash Flow (FCF)	2,991	590	588	885	994	1,053	1,098	1,124	1,128	1,110	—

Peers' EBITDA Multiple											10.8x
Terminal Value											11,873
WACC / Discount Rate	8.38%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	2,873	523	481	668	692	676	651	615	570	517	5,312

Enterprise Value	13,577
Projection Period	8,265	60.9%
Terminal Value	5,312	39.1%

(−) Current Net Debt	418
Equity Value	13,159
(÷) Outstanding Shares	103M
Fair Price	$128	+251.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	6.8x	8.8x	10.8x	12.8x	14.8x
6.4%	$122	$133	$145	$156	$168
7.4%	$115	$125	$136	$146	$157
8.4%	$109	$118	$128	$137	$147
9.4%	$103	$112	$121	$129	$138
10.4%	$98	$106	$114	$122	$130

Current price: $36.42. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$33.37

Market Price

$36.42

Upside / Downside

-8.4%

Verdict

Overvalued

P/E Valuation — Banks - Regional

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
First Interstate BancSystem, Inc.FIBK	3,745	12.4x	17.1x
Webster Financial CorporationWBS	11,778	12.3x	13.9x
Associated Banc-CorpASB	4,738	10.3x	24.2x
Banco Macro S.A.BMA	4,698	20.4x	0.0x
Fulton Financial CorporationFULT	4,138	10.3x	12.7x
Cathay General BancorpCATY	3,848	12.7x	12.7x
Independent Bank Corp.INDB	3,798	17.6x	15.7x
Renasant CorporationRNST	3,783	19.4x	15.2x
First BanCorp.FBP	3,745	11.2x	13.1x
WesBanco, Inc.WSBC	3,289	15.1x	16.1x
Industry Median		12.7x	13.9x
(*) Profit after tax		302	219
Equity Value		3,823	3,040
(/) Outstanding shares		103	103
Fair Price		$37	$30

Selected Fair Value (avg of trailing + forward)

$33.37

-8.4%

Fair Value

$48.33

Market Price

$36.42

Upside / Downside

+32.7%

Verdict

Undervalued

EV/EBITDA Valuation — Banks - Regional

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
First Interstate BancSystem, Inc.FIBK	3,745	10.6x	11.4x
Webster Financial CorporationWBS	11,778	10.8x	17.8x
Associated Banc-CorpASB	4,738	14.4x	35.5x
Banco Macro S.A.BMA	4,698	6.9x	0.0x
Fulton Financial CorporationFULT	4,138	9.8x	17.1x
Cathay General BancorpCATY	3,848	9.1x	16.6x
Independent Bank Corp.INDB	3,798	14.6x	25.1x
Renasant CorporationRNST	3,783	15.5x	35.7x
First BanCorp.FBP	3,745	8.3x	11.9x
WesBanco, Inc.WSBC	3,289	15.3x	38.9x
Industry Median		10.8x	17.8x
(*) EBITDA		392	367
= Enterprise Value		4,241	6,533
(-) Net Debt		418	418
Equity Value		3,824	6,115
(/) Outstanding shares		103	103
Fair Price		$37	$59

Selected Fair Value (avg of trailing + forward)

$48.33

+32.7%

Fair Value

$35.29

Market Price

$36.42

Upside / Downside

-3.1%

Verdict

Overvalued

EV/Revenue Valuation — Banks - Regional

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
First Interstate BancSystem, Inc.FIBK	3,745	3.9x	4.2x
Webster Financial CorporationWBS	11,778	3.1x	5.1x
Associated Banc-CorpASB	4,738	3.4x	8.4x
Banco Macro S.A.BMA	4,698	0.8x	0.0x
Fulton Financial CorporationFULT	4,138	2.7x	4.8x
Cathay General BancorpCATY	3,848	2.8x	5.2x
Independent Bank Corp.INDB	3,798	3.8x	6.6x
Renasant CorporationRNST	3,783	2.6x	6.0x
First BanCorp.FBP	3,745	2.7x	3.9x
WesBanco, Inc.WSBC	3,289	3.3x	8.4x
Industry Median		2.8x	5.2x
(*) Revenue		1,058	991
= Enterprise Value		2,988	5,105
(-) Net Debt		418	418
Equity Value		2,571	4,688
(/) Outstanding shares		103	103
Fair Price		$25	$46

Selected Fair Value (avg of trailing + forward)

$35.29

-3.1%

PEG Fair Value

Fair Value

$21.44

Market Price

$36.42

Upside / Downside

-41.1%

Verdict

Overvalued

PEG Ratio

2.16Expensive

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 13.6 ÷ (0.8% + 5.5%) = 2.16

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Slow GrowerPEG less reliable

PEG tends to undervalue slow growers — consider dividend yield and asset value instead.

Fair Value Calculation

EPS Growth RateForward	0.8%
Dividend Yield	+5.5%
Adjusted Growth (clamped 8–25%)Clamped	8.0%
Fair P/E	8.0x
NTM EPS (FY2026)	$2.68
Fair Value	$21.44

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$2.94	—	—
FY2026E	$2.68	-8.9%	4
FY2027E	$2.99	+11.5%	4

2Y Forward EPS CAGR: 0.8%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$192.1M	$3.11	—
FY2022	$202.2M	$1.96	-37.0%
FY2023	$257.5M	$2.48	+26.5%
FY2024	$226.0M	$2.19	-11.7%
FY2025	$302.1M	$2.94	+34.2%

4Y Historical EPS CAGR: -1.4%

Earnings Power Value

Fair Value

$45.08

Market Price

$36.42

Upside / Downside

+23.8%

Verdict

Undervalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	423	423	423
(/) WACC	9.9%	8.4%	6.9%
Enterprise Value	4,286	5,053	6,156
(-) Net debt	418	418	418
Equity Value	3,868	4,636	5,738
(/) Outstanding shares	103	103	103
Fair Price	$37.62	$45.08	$55.80

Dividend Discount Model

Fair Value

$46.99

Market Price

$36.42

Upside / Downside

+29.0%

Verdict

Undervalued

Dividend Profile

Current DPS

$1.89

Dividend Yield

5.47%

Payout Ratio

64.3%

Dividend Coverage

1.55x

FCF Payout Ratio69.9%

DPS CAGR (4Y)3.5%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$1.89	64.3%	-0.5%
2024	$1.90	86.7%	+1.0%
2023	$1.88	75.8%	+6.7%
2022	$1.76	90.1%	+7.1%
2021	$1.65	52.9%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$2.04	7.7%	0.9287	$1.89
2027	$2.19	7.7%	0.8625	$1.89
2028	$2.36	7.7%	0.8010	$1.89
2029	$2.55	7.7%	0.7439	$1.89
2030	$2.74	7.7%	0.6908	$1.90
Terminal Value	$2.81 DPS	2.5%		$37.53

PV of Projected Dividends$9.47

PV of Terminal Value$37.53

Fair Value per Share$46.99

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	5.7%	6.7%	7.7%	8.7%	9.7%
5.7%	$71	$74	$77	$81	$84
6.7%	$54	$56	$58	$61	$64
7.7%	$43	$45	$47	$49	$51
8.7%	$36	$38	$39	$41	$43
9.7%	$31	$32	$34	$35	$37