HBAN
Huntington Bancshares Incorporated
$16.73
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Fair Value
Trading 20.6% below fair value
You pay
$16.73
Bear
$14.76
Fair
$21.08
Bull
$27.40
Bear
$14.76
-11.8%
ROTCE 9.4% → 0.99x TBV
Fair
$21.08
+26.0%
ROTCE 12.6% → 1.56x TBV
Bull
$27.40
+63.8%
ROTCE 14.5% → 1.91x TBV
Adjust Assumptions
12.6%
9.5%
Key Value Driver
ROTCE (12.6%) vs. cost of equity (9.5%)
Implied Market Multiple
1.92x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (48 analysts)
$20.33
Divergence from AlphaVal
4%
Summary
With ROTCE of 12.6% vs. 9.5% cost of equity, fair P/TBV is 1.56x on $8.71 tangible book, implying $21.08 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