LWCL
Lewis & Clark Bancorp
$9.60
Banks, Insurers & Asset Managers
90%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Undervalued
Trading 37.2% below fair value
You pay
$9.60
Bear
$10.70
Fair
$15.29
Bull
$19.88
Bear
$10.70
+11.5%
ROTCE 4.0% → 0.30x TBV
Fair
$15.29
+59.3%
ROTCE 0.2% → 0.30x TBV
Bull
$19.88
+107.1%
ROTCE 0.2% → 0.30x TBV
Adjust Assumptions
0.2%
6.0%
Key Value Driver
ROTCE (0.2%) vs. cost of equity (6.0%)
Implied Market Multiple
0.32x
Summary
With ROTCE of 0.2% vs. 6.0% cost of equity, fair P/TBV is 0.30x on $30.34 tangible book, implying $15.29 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 (0.2%) is below the minimum investors require (6.0%). This means the bank is worth less than the net assets on its books.
This stock is 78% below its 52-week high, with weak or declining earnings. That combination often signals real trouble, even though the valuation below is based on other fundamentals.
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