TRMK
Trustmark Corporation
$46.88
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Undervalued
Trading 26.2% below fair value
You pay
$46.88
Bear
$40.18
Fair
$63.49
Bull
$77.48
Bear
$40.18
-14.3%
ROTCE 9.4% → 1.41x TBV
Fair
$63.49
+35.4%
ROTCE 12.5% → 2.23x TBV
Bull
$77.48
+65.3%
ROTCE 14.4% → 2.72x TBV
Key Value Driver
ROTCE (12.5%) vs. cost of equity (7.8%)
Implied Market Multiple
1.54x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $45.50 from 9 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $63.49 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: $15.13 (78% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $45.50 (from 9 analysts). Our estimate is 49% above the consensus -- consider that gap carefully.
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