German American Bancorp's Valuation Tested Amid 97% Run

German American Bancorp's share price has risen 97% over the past three years, raising questions about its valuation. The bank's returns on capital are crucial, but its earnings per share and excess returns also play a role. The Excess Returns model estimates the bank's excess return per share at $1.38, with an average return on equity of 11.90%. The valuation remains uncertain, with investors needing to consider the bank's ability to reinvest customer capital at attractive spreads.