MTPOF
Metropolitan Bank & Trust Company
$0.97
Banks, Insurers & Asset Managers
90%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 71.9% below fair value
You pay
$0.97
Bear
$2.16
Fair
$3.45
Bull
$4.22
Bear
$2.16
+123.0%
ROTCE 9.0% → 1.50x TBV
Fair
$3.45
+256.3%
ROTCE 12.1% → 2.40x TBV
Bull
$4.22
+336.2%
ROTCE 13.9% → 2.94x TBV
Adjust Assumptions
12.1%
7.4%
Key Value Driver
ROTCE (12.1%) vs. cost of equity (7.4%)
Implied Market Multiple
0.67x
Summary
With ROTCE of 12.1% vs. 7.4% cost of equity, fair P/TBV is 2.40x on $1.44 tangible book, implying $3.45 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 PHP into USD using USDPHP at 0.0157 USD per PHP.
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