SSB
SouthState Bank Corp.
$106.60
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Fair Value
Trading 21.9% below fair value
You pay
$106.60
Bear
$89.10
Fair
$136.44
Bull
$164.83
Bear
$89.10
-16.4%
ROTCE 10.7% → 1.63x TBV
Fair
$136.44
+28.0%
ROTCE 14.3% → 2.50x TBV
Bull
$164.83
+54.6%
ROTCE 16.5% → 3.02x TBV
Key Value Driver
ROTCE (14.3%) vs. cost of equity (8.1%)
Implied Market Multiple
1.87x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $117.50 from 20 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $136.44 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.
Dividend-based valuation: $71.73 (50% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
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