CLSK
CleanSpark, Inc.
$13.48
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Undervalued
Trading 38.9% below fair value
You pay
$13.48
Bear
$15.44
Fair
$22.05
Bull
$28.67
Bear
$15.44
+14.5%
ROTCE 13.4% → 0.94x TBV
Fair
$22.05
+63.6%
ROTCE 17.9% → 1.39x TBV
Bull
$28.67
+112.7%
ROTCE 20.6% → 1.66x TBV
Key Value Driver
ROTCE (17.9%) vs. cost of equity (14.0%)
Implied Market Multiple
1.7x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $20.67 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $22.05 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