WSBC
WesBanco, Inc.
$36.96
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 4.3% below fair value
You pay
$36.96
Bear
$27.05
Fair
$38.64
Bull
$50.23
Bear
$27.05
-26.8%
ROTCE 7.2% → 0.77x TBV
Fair
$38.64
+4.5%
ROTCE 9.7% → 1.35x TBV
Bull
$50.23
+35.9%
ROTCE 11.1% → 1.70x TBV
Adjust Assumptions
9.7%
8.2%
Key Value Driver
ROTCE (9.7%) vs. cost of equity (8.2%)
Implied Market Multiple
1.54x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (16 analysts)
$45.00
Divergence from AlphaVal
14%
Summary
With ROTCE of 9.7% vs. 8.2% cost of equity, fair P/TBV is 1.35x on $24.07 tangible book, implying $38.64 per share. DDM cross-check: $26.87.
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: $26.87 (30% 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