HWC
Hancock Whitney Corporation
$73.51
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 7.2% below fair value
You pay
$73.51
Bear
$55.44
Fair
$79.20
Bull
$102.96
Bear
$55.44
-24.6%
ROTCE 10.5% → 1.13x TBV
Fair
$79.20
+7.7%
ROTCE 14.0% → 1.75x TBV
Bull
$102.96
+40.1%
ROTCE 16.1% → 2.11x TBV
Adjust Assumptions
14.0%
9.7%
Key Value Driver
ROTCE (14.0%) vs. cost of equity (9.7%)
Implied Market Multiple
1.7x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (25 analysts)
$83.33
Divergence from AlphaVal
5%
Summary
With ROTCE of 14.0% vs. 9.7% cost of equity, fair P/TBV is 1.75x on $43.22 tangible book, implying $79.20 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