HAFC
Hanmi Financial Corporation
$32.15
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 6.9% below fair value
You pay
$32.15
Bear
$19.82
Fair
$34.52
Bull
$43.34
Bear
$19.82
-38.3%
ROTCE 7.3% → 0.75x TBV
Fair
$34.52
+7.4%
ROTCE 9.7% → 1.30x TBV
Bull
$43.34
+34.8%
ROTCE 11.1% → 1.64x TBV
Adjust Assumptions
9.7%
8.4%
Key Value Driver
ROTCE (9.7%) vs. cost of equity (8.4%)
Implied Market Multiple
1.21x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (11 analysts)
$33.67
Divergence from AlphaVal
3%
Summary
With ROTCE of 9.7% vs. 8.4% cost of equity, fair P/TBV is 1.30x on $26.49 tangible book, implying $34.52 per share. DDM cross-check: $30.15.
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