WSFS
WSFS Financial Corporation
$75.41
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Fair Value
Trading 19.6% below fair value
You pay
$75.41
Bear
$62.73
Fair
$93.77
Bull
$112.39
Bear
$62.73
-16.8%
ROTCE 12.3% → 1.86x TBV
Fair
$93.77
+24.3%
ROTCE 16.3% → 2.78x TBV
Bull
$112.39
+49.0%
ROTCE 18.8% → 3.33x TBV
Adjust Assumptions
16.3%
8.4%
Key Value Driver
ROTCE (16.3%) vs. cost of equity (8.4%)
Implied Market Multiple
2.23x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (13 analysts)
$81.50
Divergence from AlphaVal
15%
Summary
With ROTCE of 16.3% vs. 8.4% cost of equity, fair P/TBV is 2.78x on $33.78 tangible book, implying $93.77 per share. DDM cross-check: $40.57.
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: $40.57 (57% 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