WT
WisdomTree, Inc.
$19.53
Banks, Insurers & Asset Managers
90%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Overvalued
Trading 61.9% above fair value
You pay
$19.53
Bear
$8.44
Fair
$12.06
Bull
$15.68
Bear
$8.44
-56.8%
ROTCE 19.8% → 2.32x TBV
Fair
$12.06
-38.2%
ROTCE 25.0% → 3.30x TBV
Bull
$15.68
-19.7%
ROTCE 30.0% → 3.83x TBV
Key Value Driver
ROTCE (26.4%) vs. cost of equity (10.8%)
Implied Market Multiple
7.22x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $19.86 from 17 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $12.06 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.
Wall Street's average price target is $19.86 (from 17 analysts). Our estimate is 52% below the consensus -- consider that gap carefully.
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