WSBC
WesBanco, Inc.
$40.53
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Overvalued
Trading 2.7% above fair value
You pay
$40.53
Bear
$27.64
Fair
$39.48
Bull
$51.32
Bear
$27.64
-31.8%
ROTCE 7.2% → 0.79x TBV
Fair
$39.48
-2.6%
ROTCE 9.7% → 1.38x TBV
Bull
$51.32
+26.6%
ROTCE 11.1% → 1.74x TBV
Key Value Driver
ROTCE (9.7%) vs. cost of equity (8.1%)
Implied Market Multiple
1.69x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $42.00 from 16 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $39.48 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: $27.24 (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