HTB
HomeTrust Bancshares, Inc.
$46.83
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 10.1% below fair value
You pay
$46.83
Bear
$32.07
Fair
$52.07
Bull
$64.06
Bear
$32.07
-31.5%
ROTCE 8.6% → 0.96x TBV
Fair
$52.07
+11.2%
ROTCE 11.5% → 1.56x TBV
Bull
$64.06
+36.8%
ROTCE 13.2% → 1.92x TBV
Key Value Driver
ROTCE (11.5%) vs. cost of equity (8.8%)
Implied Market Multiple
1.4x
Summary
With ROTCE of 11.5% vs. 8.8% cost of equity, fair P/TBV is 1.56x on $33.43 tangible book, implying $52.07 per share. DDM cross-check: $426.44.
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: $426.44 (719% 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