HAFC
Hanmi Financial Corporation
$30.17
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 14.2% below fair value
You pay
$30.17
Bear
$20.18
Fair
$35.15
Bull
$44.12
Bear
$20.18
-33.1%
ROTCE 7.3% → 0.77x TBV
Fair
$35.15
+16.5%
ROTCE 9.7% → 1.33x TBV
Bull
$44.12
+46.2%
ROTCE 11.1% → 1.67x TBV
Key Value Driver
ROTCE (9.7%) vs. cost of equity (8.3%)
Implied Market Multiple
1.14x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $35.00 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $35.15 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.
Dividend-based valuation: $200.66 (470% above 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