FBP
First BanCorp.
$27.34
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Fair Value
Trading 24.1% below fair value
You pay
$27.34
Bear
$24.43
Fair
$36.03
Bull
$42.98
Bear
$24.43
-10.6%
ROTCE 13.4% → 1.94x TBV
Fair
$36.03
+31.8%
ROTCE 17.9% → 2.86x TBV
Bull
$42.98
+57.2%
ROTCE 20.6% → 3.41x TBV
Adjust Assumptions
17.9%
8.9%
Key Value Driver
ROTCE (17.9%) vs. cost of equity (8.9%)
Implied Market Multiple
2.17x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (17 analysts)
$29.75
Divergence from AlphaVal
21%
Summary
With ROTCE of 17.9% vs. 8.9% cost of equity, fair P/TBV is 2.86x on $12.61 tangible book, implying $36.03 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