HWC
Hancock Whitney Corporation
$76.20
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 13.4% below fair value
You pay
$76.20
Bear
$61.62
Fair
$88.03
Bull
$114.44
Bear
$61.62
-19.1%
ROTCE 10.5% → 1.16x TBV
Fair
$88.03
+15.5%
ROTCE 14.0% → 1.79x TBV
Bull
$114.44
+50.2%
ROTCE 16.1% → 2.17x TBV
Key Value Driver
ROTCE (14.0%) vs. cost of equity (9.6%)
Implied Market Multiple
1.78x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $82.83 from 25 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $88.03 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