HTB
HomeTrust Bancshares, Inc.
$47.25
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 11.0% below fair value
You pay
$47.25
Bear
$32.71
Fair
$53.10
Bull
$65.34
Bear
$32.71
-30.8%
ROTCE 8.6% → 0.98x TBV
Fair
$53.10
+12.4%
ROTCE 11.5% → 1.59x TBV
Bull
$65.34
+38.3%
ROTCE 13.2% → 1.95x TBV
Adjust Assumptions
11.5%
8.7%
Key Value Driver
ROTCE (11.5%) vs. cost of equity (8.7%)
Implied Market Multiple
1.41x
Summary
With ROTCE of 11.5% vs. 8.7% cost of equity, fair P/TBV is 1.59x on $33.43 tangible book, implying $53.10 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