PJT
PJT Partners Inc.
$137.28
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Overvalued
Trading 56.0% above fair value
You pay
$137.28
Bear
$61.61
Fair
$88.02
Bull
$114.43
Bear
$61.61
-55.1%
ROTCE 20.0% → 3.13x TBV
Fair
$88.02
-35.9%
ROTCE 25.0% → 4.00x TBV
Bull
$114.43
-16.6%
ROTCE 30.0% → 4.00x TBV
Adjust Assumptions
165.0%
9.1%
Key Value Driver
ROTCE (165.0%) vs. cost of equity (9.1%)
Implied Market Multiple
32.15x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (13 analysts)
$175.25
Divergence from AlphaVal
50%
Summary
With ROTCE of 165.0% vs. 9.1% cost of equity, fair P/TBV is 4.00x on $4.27 tangible book, implying $88.02 per share. DDM cross-check: $22.96.
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: $22.96 (74% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $175.25 (from 13 analysts). Our estimate is 50% below the consensus -- consider that gap carefully.
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