PNFP
Pinnacle Financial Partners, Inc.
$93.30
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Undervalued
Trading 27.4% below fair value
You pay
$93.30
Bear
$89.96
Fair
$128.52
Bull
$167.08
Bear
$89.96
-3.6%
ROTCE 9.3% → 0.89x TBV
Fair
$128.52
+37.7%
ROTCE 12.4% → 1.41x TBV
Bull
$167.08
+79.1%
ROTCE 14.3% → 1.72x TBV
Adjust Assumptions
12.4%
10.0%
Key Value Driver
ROTCE (12.4%) vs. cost of equity (10.0%)
Implied Market Multiple
2.73x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (24 analysts)
$119.77
Divergence from AlphaVal
7%
Summary
With ROTCE of 12.4% vs. 10.0% cost of equity, fair P/TBV is 1.41x on $34.21 tangible book, implying $128.52 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