BLX
Bladex, Inc.
$59.64
Banks, Insurers & Asset Managers
90%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 50.4% below fair value
You pay
$59.64
Bear
$77.69
Fair
$120.29
Bull
$145.84
Bear
$77.69
+30.3%
ROTCE 10.2% → 1.34x TBV
Fair
$120.29
+101.7%
ROTCE 13.6% → 2.07x TBV
Bull
$145.84
+144.5%
ROTCE 15.6% → 2.51x TBV
Key Value Driver
ROTCE (13.6%) vs. cost of equity (8.6%)
Implied Market Multiple
1.03x
Summary
With ROTCE of 13.6% vs. 8.6% cost of equity, fair P/TBV is 2.07x on $58.04 tangible book, implying $120.29 per share.
Warnings
Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.
Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.
Key Risks
- Book value quality matters as much as level — check loan loss reserves
- Interest rate sensitivity creates non-linear earnings surprises
- Insurance reserving is actuarial, not financial — errors emerge slowly