BOH
Bank of Hawaii Corporation
$67.23
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Fair Value
Trading 16.7% below fair value
You pay
$67.23
Bear
$49.47
Fair
$80.66
Bull
$99.38
Bear
$49.47
-26.4%
ROTCE 8.5% → 1.07x TBV
Fair
$80.66
+20.0%
ROTCE 11.3% → 1.75x TBV
Bull
$99.38
+47.8%
ROTCE 13.0% → 2.15x TBV
Adjust Assumptions
11.3%
8.2%
Key Value Driver
ROTCE (11.3%) vs. cost of equity (8.2%)
Implied Market Multiple
1.46x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (15 analysts)
$82.67
Divergence from AlphaVal
2%
Summary
With ROTCE of 11.3% vs. 8.2% cost of equity, fair P/TBV is 1.75x on $46.13 tangible book, implying $80.66 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