IFS
Intercorp Financial Services Inc.
$51.82
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 53.8% below fair value
You pay
$51.82
Bear
$93.95
Fair
$112.19
Bull
$112.19
Bear
$93.95
+81.3%
ROTCE 12.7% → 3.35x TBV
Fair
$112.19
+116.5%
ROTCE 17.0% → 4.00x TBV
Bull
$112.19
+116.5%
ROTCE 19.5% → 4.00x TBV
Adjust Assumptions
17.0%
6.6%
Key Value Driver
ROTCE (17.0%) vs. cost of equity (6.6%)
Implied Market Multiple
1.85x
Summary
With ROTCE of 17.0% vs. 6.6% cost of equity, fair P/TBV is 4.00x on $28.05 tangible book, implying $112.19 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.
Financial statements were converted from PEN into USD using USDPEN at 0.2906 USD per PEN.
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