PNFP
Pinnacle Financial Partners, Inc.
$101.05
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 7.7% below fair value
You pay
$101.05
Bear
$76.63
Fair
$109.47
Bull
$142.31
Bear
$76.63
-24.2%
ROTCE 9.3% → 0.89x TBV
Fair
$109.47
+8.3%
ROTCE 12.4% → 1.41x TBV
Bull
$142.31
+40.8%
ROTCE 14.3% → 1.72x TBV
Key Value Driver
ROTCE (12.4%) vs. cost of equity (10.0%)
Implied Market Multiple
1.5x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $116.57 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $109.47 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