PWP
Perella Weinberg Partners
$18.68
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Overvalued
Trading 69.8% above fair value
You pay
$18.68
Bear
$7.70
Fair
$11.00
Bull
$14.30
Bear
$7.70
-58.8%
ROTCE 4.0% → 0.30x TBV
Fair
$11.00
-41.1%
ROTCE 0.0% → 0.30x TBV
Bull
$14.30
-23.4%
ROTCE 0.0% → 0.30x TBV
Key Value Driver
ROTCE (0.0%) vs. cost of equity (13.9%)
Implied Market Multiple
3.4x
Summary
With ROTCE of 0.0% vs. 13.9% cost of equity, fair P/TBV is 0.30x on $5.50 tangible book, implying $11.00 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.
Return on equity (0.0%) is below the minimum investors require (13.9%). This means the bank is worth less than the net assets on its books.
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