FNB
F.N.B. Corporation
$18.18
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Fair Value
Trading 16.1% below fair value
You pay
$18.18
Bear
$13.93
Fair
$21.67
Bull
$26.31
Bear
$13.93
-23.4%
ROTCE 10.0% → 1.16x TBV
Fair
$21.67
+19.2%
ROTCE 13.3% → 1.80x TBV
Bull
$26.31
+44.7%
ROTCE 15.3% → 2.19x TBV
Adjust Assumptions
13.3%
9.2%
Key Value Driver
ROTCE (13.3%) vs. cost of equity (9.2%)
Implied Market Multiple
1.51x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (20 analysts)
$20.67
Divergence from AlphaVal
5%
Summary
With ROTCE of 13.3% vs. 9.2% cost of equity, fair P/TBV is 1.80x on $12.02 tangible book, implying $21.67 per share. DDM cross-check: $6.03.
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.
Dividend-based valuation: $6.03 (72% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
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