PJT
PJT Partners Inc.
$156.56
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Overvalued
Trading 17.3% above fair value
You pay
$156.56
Bear
$93.41
Fair
$133.45
Bull
$173.48
Bear
$93.41
-40.3%
ROTCE 20.0% → 3.21x TBV
Fair
$133.45
-14.8%
ROTCE 25.0% → 4.00x TBV
Bull
$173.48
+10.8%
ROTCE 30.0% → 4.00x TBV
Key Value Driver
ROTCE (165.0%) vs. cost of equity (9.0%)
Implied Market Multiple
37.03x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $158.67 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $133.45 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.
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