PJT
PJT Partners Inc.
$166.67
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Overvalued
Trading 39.3% above fair value
You pay
$166.67
Bear
$83.77
Fair
$119.66
Bull
$155.56
Bear
$83.77
-49.7%
ROTCE 20.0% → 3.24x TBV
Fair
$119.66
-28.2%
ROTCE 25.0% → 4.00x TBV
Bull
$155.56
-6.7%
ROTCE 30.0% → 4.00x TBV
Key Value Driver
ROTCE (165.0%) vs. cost of equity (8.9%)
Implied Market Multiple
39.42x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $168.00 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $119.66 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.
Wall Street's average price target is $168.00 (from 12 analysts). Our estimate is 36% 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