FINV
FinVolution Group
$4.92
Banks, Insurers & Asset Managers
80%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 87.3% below fair value
You pay
$4.92
Bear
$30.19
Fair
$38.61
Bull
$38.61
Bear
$30.19
+513.7%
ROTCE 11.4% → 3.13x TBV
Fair
$38.61
+684.7%
ROTCE 15.3% → 4.00x TBV
Bull
$38.61
+684.7%
ROTCE 17.5% → 4.00x TBV
Key Value Driver
ROTCE (15.3%) vs. cost of equity (6.4%)
Implied Market Multiple
0.51x
Summary
With ROTCE of 15.3% vs. 6.4% cost of equity, fair P/TBV is 4.00x on $9.65 tangible book, implying $38.61 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.
Financial statements were converted from CNY into USD using USDCNY at 0.1479 USD per CNY.
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