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DCF valuation

What is National Bankshares Inc worth?

With the base-case assumptions below, a discounted cash flow model on National Bankshares Inc's reported free cash flow gives $59.01 per share. The share price was $42.37 on September 25, 2026, 28% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$15.2M
Average free cash flow, last 5 years
$17.2M
Cash
$54.6M
balance sheet of June 30, 2026
Debt
$0
not reported, counted as 0
Diluted shares, fiscal 2025
6,362,505
Revenue growth per year, last 5 years
7.7%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear2.5%2.5%2.0%10.0%$40.04-5%
Base7.5%5.0%2.5%9.0%$59.01+39%
Bull12.5%8.0%3.0%8.0%$96.83+129%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$73.11$77.42$82.70$89.29$97.77
8.0%$62.58$65.38$68.68$72.65$77.50
9.0%$54.89$56.80$59.01$61.59$64.63
10.0%$49.04$50.40$51.94$53.70$55.73
11.0%$44.44$45.43$46.55$47.80$49.22

Where the presets come from

Base: years 1 to 5 grow at National Bankshares Inc's revenue growth rate over the last 5 fiscal years (7.7% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

National Bankshares Inc company page