BLX Bladex, Inc.
$53.95
Banks, Insurers & Asset Managers 90%
P/Tangible Book × ROE Quality
Strong · Conviction

Undervalued

Trading 54.6% below fair value

You pay $53.95
Bear $76.69
Fair $118.74
Bull $143.97
Bear $76.69 +42.1% ROTCE 10.2% → 1.32x TBV
Fair $118.74 +120.1% ROTCE 13.6% → 2.05x TBV
Bull $143.97 +166.8% ROTCE 15.6% → 2.48x TBV

Adjust Assumptions

13.6%
8.7%

Key Value Driver

ROTCE (13.6%) vs. cost of equity (8.7%)

Implied Market Multiple 0.93x

Summary

With ROTCE of 13.6% vs. 8.7% cost of equity, fair P/TBV is 2.05x on $58.04 tangible book, implying $118.74 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