The stability of the financial system significantly relies on the quality and stability of banks as the most represented financial institutions in most financial systems. In the era of globalization, financial integration, and various other modern changes and processes that affect banking operations, it is important to ensure the possibility of quality valuation of commercial banks, in order to preserve their stability and protect the interests of shareholders, as well as depositors, considering the business model of banks, and other stakeholders involved. This paper focuses on the analysis of the valuation of Hrvatska poštanska banka d.d. through the equity cash flow model. The equity cash flow model is the most appropriate method for evaluating a commercial bank because it takes into account all cash flows when calculating the equity value. The difference in approaches to valuing companies and financial institutions is a challenge for analysts, so this paper aims to provide a clearer picture of how to best valuate commercial banks. Various secondary sources were used in this work, including books, scientific articles, financial reports, and statistical data for the purpose of a comprehensive analysis. The results of the analysis of Hrvatska poštanska banka's business model indicate its financial position and how the market values the bank based on business data, which is especially important in the context of challenging business, financial, and macroeconomic environments over the past decade. In this sense, the paper points out the position of Hrvatska poštanska banka in relation to other leading banks in the market and provides a comprehensive overview of the situation in the Croatian banking sector. The research results enable a reassessment of the reality of the market price of the bank's shares on the Zagreb Stock Exchange, considering the expressed financial data and indicators, as well as potential for further growth.