CASH
Pathward Financial, Inc.
$72.24
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 45.2% below fair value
You pay
$72.24
Bear
$105.45
Fair
$131.78
Bull
$171.31
Bear
$105.45
+46.0%
ROTCE 20.0% → 4.00x TBV
Fair
$131.78
+82.4%
ROTCE 25.0% → 4.00x TBV
Bull
$171.31
+137.1%
ROTCE 30.0% → 4.00x TBV
Adjust Assumptions
33.9%
7.9%
Key Value Driver
ROTCE (33.9%) vs. cost of equity (7.9%)
Implied Market Multiple
2.74x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (9 analysts)
$105.00
Divergence from AlphaVal
26%
Summary
With ROTCE of 33.9% vs. 7.9% cost of equity, fair P/TBV is 4.00x on $26.36 tangible book, implying $131.78 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.
Wall Street's average price target is $105.00 (from 9 analysts). Our estimate is 26% above the consensus -- consider that gap carefully.
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