FRST
Primis Financial Corp
$14.73
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 67.6% below fair value
You pay
$14.73
Bear
$30.95
Fair
$45.40
Bull
$53.13
Bear
$30.95
+110.1%
ROTCE 14.0% → 2.33x TBV
Fair
$45.40
+208.2%
ROTCE 18.7% → 3.42x TBV
Bull
$53.13
+260.7%
ROTCE 21.5% → 4.00x TBV
Adjust Assumptions
18.7%
8.3%
Key Value Driver
ROTCE (18.7%) vs. cost of equity (8.3%)
Implied Market Multiple
1.11x
Summary
With ROTCE of 18.7% vs. 8.3% cost of equity, fair P/TBV is 3.42x on $13.28 tangible book, implying $45.40 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