HUT
Hut 8 Corp.
$108.98
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Overvalued
Trading 68.1% above fair value
You pay
$108.98
Bear
$45.38
Fair
$64.83
Bull
$84.27
Bear
$45.38
-58.4%
ROTCE 4.0% → 0.30x TBV
Fair
$64.83
-40.5%
ROTCE -18.8% → 0.30x TBV
Bull
$84.27
-22.7%
ROTCE -21.7% → 0.30x TBV
Key Value Driver
ROTCE (-18.8%) vs. cost of equity (14.0%)
Implied Market Multiple
10.22x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $134.50 from 16 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $64.83 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.
Return on equity (-18.8%) is below the minimum investors require (14.0%). This means the bank is worth less than the net assets on its books.
Wall Street's average price target is $134.50 (from 16 analysts). Our estimate is 69% below the consensus -- consider that gap carefully.
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