BMNR
Bitmine Immersion Technologies, Inc.
$21.57
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Overvalued
Trading 371.1% above fair value
Bear
$4.58
-78.8%
ROTCE 4.0% → 0.30x TBV
Fair
$4.58
-78.8%
ROTCE 4.0% → 0.30x TBV
Bull
$4.58
-78.8%
ROTCE 4.6% → 0.30x TBV
Adjust Assumptions
4.0%
12.9%
Key Value Driver
ROTCE (4.0%) vs. cost of equity (12.9%)
Implied Market Multiple
1.41x
Summary
With ROTCE of 4.0% vs. 12.9% cost of equity, fair P/TBV is 0.30x on $15.26 tangible book, implying $4.58 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.
Return on equity (4.0%) is below the minimum investors require (12.9%). This means the bank is worth less than the net assets on its books.
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