BMNR
Bitmine Immersion Technologies, Inc.
$18.88
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 45.8% below fair value
You pay
$18.88
Bear
$24.39
Fair
$34.84
Bull
$45.29
Bear
$24.39
+29.2%
ROTCE 4.0% → 0.30x TBV
Fair
$34.84
+84.5%
ROTCE 4.0% → 0.30x TBV
Bull
$45.29
+139.9%
ROTCE 4.6% → 0.30x TBV
Key Value Driver
ROTCE (4.0%) vs. cost of equity (13.6%)
Implied Market Multiple
1.17x
Summary
With ROTCE of 4.0% vs. 13.6% cost of equity, fair P/TBV is 0.30x on $16.17 tangible book, implying $34.84 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 (13.6%). 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