HTB
HomeTrust Bancshares, Inc.
$47.13
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 11.2% below fair value
You pay
$47.13
Bear
$32.70
Fair
$53.09
Bull
$65.32
Bear
$32.70
-30.6%
ROTCE 8.6% → 0.97x TBV
Fair
$53.09
+12.6%
ROTCE 11.5% → 1.58x TBV
Bull
$65.32
+38.6%
ROTCE 13.2% → 1.94x TBV
Adjust Assumptions
11.5%
8.7%
Key Value Driver
ROTCE (11.5%) vs. cost of equity (8.7%)
Implied Market Multiple
1.4x
Summary
With ROTCE of 11.5% vs. 8.7% cost of equity, fair P/TBV is 1.58x on $33.65 tangible book, implying $53.09 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