TBBK
The Bancorp, Inc.
$49.42
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Undervalued
Trading 35.6% below fair value
You pay
$49.42
Bear
$53.75
Fair
$76.78
Bull
$99.81
Bear
$53.75
+8.8%
ROTCE 20.0% → 2.22x TBV
Fair
$76.78
+55.4%
ROTCE 25.0% → 2.92x TBV
Bull
$99.81
+102.0%
ROTCE 30.0% → 3.61x TBV
Adjust Assumptions
33.1%
11.2%
Key Value Driver
ROTCE (33.1%) vs. cost of equity (11.2%)
Implied Market Multiple
2.99x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (7 analysts)
$64.00
Divergence from AlphaVal
20%
Summary
With ROTCE of 33.1% vs. 11.2% cost of equity, fair P/TBV is 2.92x on $16.55 tangible book, implying $76.78 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