MCB
Metropolitan Bank Holding Corp.
$96.88
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Overvalued
Trading 0.1% above fair value
You pay
$96.88
Bear
$67.72
Fair
$96.75
Bull
$125.78
Bear
$67.72
-30.1%
ROTCE 7.2% → 0.53x TBV
Fair
$96.75
-0.1%
ROTCE 9.6% → 0.93x TBV
Bull
$125.78
+29.8%
ROTCE 11.0% → 1.17x TBV
Adjust Assumptions
9.6%
10.0%
Key Value Driver
ROTCE (9.6%) vs. cost of equity (10.0%)
Implied Market Multiple
1.62x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (5 analysts)
$100.00
Divergence from AlphaVal
3%
Summary
With ROTCE of 9.6% vs. 10.0% cost of equity, fair P/TBV is 0.93x on $59.94 tangible book, implying $96.75 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 (9.6%) is below the minimum investors require (10.0%). This means the bank is worth less than the net assets on its books.
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