HAFC
Hanmi Financial Corporation
$31.46
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 12.4% below fair value
You pay
$31.46
Bear
$20.63
Fair
$35.93
Bull
$45.11
Bear
$20.63
-34.4%
ROTCE 7.3% → 0.78x TBV
Fair
$35.93
+14.2%
ROTCE 9.7% → 1.36x TBV
Bull
$45.11
+43.4%
ROTCE 11.1% → 1.71x TBV
Adjust Assumptions
9.7%
8.2%
Key Value Driver
ROTCE (9.7%) vs. cost of equity (8.2%)
Implied Market Multiple
1.19x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (11 analysts)
$33.67
Divergence from AlphaVal
7%
Summary
With ROTCE of 9.7% vs. 8.2% cost of equity, fair P/TBV is 1.36x on $26.38 tangible book, implying $35.93 per share. DDM cross-check: $31.69.
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