HBAN
Huntington Bancshares Incorporated
$15.73
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Undervalued
Trading 25.4% below fair value
You pay
$15.73
Bear
$14.76
Fair
$21.08
Bull
$27.40
Bear
$14.76
-6.2%
ROTCE 9.4% → 0.96x TBV
Fair
$21.08
+34.0%
ROTCE 12.6% → 1.52x TBV
Bull
$27.40
+74.2%
ROTCE 14.5% → 1.85x TBV
Adjust Assumptions
12.6%
9.6%
Key Value Driver
ROTCE (12.6%) vs. cost of equity (9.6%)
Implied Market Multiple
1.81x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (49 analysts)
$19.33
Divergence from AlphaVal
9%
Summary
With ROTCE of 12.6% vs. 9.6% cost of equity, fair P/TBV is 1.52x 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