BOH
Bank of Hawaii Corporation
$84.39
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Overvalued
Trading 2.9% above fair value
You pay
$84.39
Bear
$50.31
Fair
$82.03
Bull
$101.07
Bear
$50.31
-40.4%
ROTCE 8.5% → 1.10x TBV
Fair
$82.03
-2.8%
ROTCE 11.3% → 1.79x TBV
Bull
$101.07
+19.8%
ROTCE 13.0% → 2.20x TBV
Key Value Driver
ROTCE (11.3%) vs. cost of equity (8.1%)
Implied Market Multiple
1.84x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $82.00 from 15 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $82.03 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