WSFS
WSFS Financial Corporation
$71.69
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Fair Value
Trading 19.5% below fair value
You pay
$71.69
Bear
$59.60
Fair
$89.10
Bull
$106.78
Bear
$59.60
-16.9%
ROTCE 12.3% → 1.81x TBV
Fair
$89.10
+24.3%
ROTCE 16.3% → 2.71x TBV
Bull
$106.78
+49.0%
ROTCE 18.8% → 3.25x TBV
Key Value Driver
ROTCE (16.3%) vs. cost of equity (8.6%)
Implied Market Multiple
2.12x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $79.00 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $89.10 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: $35.56 (61% 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