LOGN
Logansport Financial Corp.
$32.30
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 53.5% below fair value
You pay
$32.30
Bear
$33.63
Fair
$69.47
Bull
$90.97
Bear
$33.63
+4.1%
ROTCE 5.8% → 0.91x TBV
Fair
$69.47
+115.1%
ROTCE 7.8% → 1.88x TBV
Bull
$90.97
+181.6%
ROTCE 8.9% → 2.46x TBV
Key Value Driver
ROTCE (7.8%) vs. cost of equity (6.0%)
Implied Market Multiple
0.87x
Summary
With ROTCE of 7.8% vs. 6.0% cost of equity, fair P/TBV is 1.88x on $36.93 tangible book, implying $69.47 per share. DDM cross-check: $50.96.
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.
Dividend-based valuation: $50.96 (27% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
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