TRST
TrustCo Bank Corp NY
$57.47
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Overvalued
Trading 11.3% above fair value
You pay
$57.47
Bear
$28.19
Fair
$51.62
Bull
$65.68
Bear
$28.19
-50.9%
ROTCE 6.7% → 0.70x TBV
Fair
$51.62
-10.2%
ROTCE 8.9% → 1.28x TBV
Bull
$65.68
+14.3%
ROTCE 10.2% → 1.63x TBV
Adjust Assumptions
8.9%
7.8%
Key Value Driver
ROTCE (8.9%) vs. cost of equity (7.8%)
Implied Market Multiple
1.43x
Summary
With ROTCE of 8.9% vs. 7.8% cost of equity, fair P/TBV is 1.28x on $40.32 tangible book, implying $51.62 per share. DDM cross-check: $26.57.
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: $26.57 (49% 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