SSB
SouthState Bank Corp.
$101.17
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Fair Value
Trading 22.2% below fair value
You pay
$101.17
Bear
$84.95
Fair
$130.08
Bull
$157.15
Bear
$84.95
-16.0%
ROTCE 10.7% → 1.48x TBV
Fair
$130.08
+28.6%
ROTCE 14.3% → 2.26x TBV
Bull
$157.15
+55.3%
ROTCE 16.5% → 2.73x TBV
Adjust Assumptions
14.3%
8.6%
Key Value Driver
ROTCE (14.3%) vs. cost of equity (8.6%)
Implied Market Multiple
1.76x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (20 analysts)
$117.00
Divergence from AlphaVal
11%
Summary
With ROTCE of 14.3% vs. 8.6% cost of equity, fair P/TBV is 2.26x on $57.53 tangible book, implying $130.08 per share. DDM cross-check: $63.98.
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: $63.98 (51% 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