International Bancshares Corporation logo IBOC - International Bancshares Corporation

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY 0
BUY 1
HOLD 0
SELL 0
STRONG
SELL 0
| PRICE TARGET: $85.00 DETAILS
HIGH: $85.00
LOW: $85.00
MEDIAN: $85.00
CONSENSUS: $85.00
UPSIDE: 11.21%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 85% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Undervalued Moderate
Trading 33.5% below fair value
Current Price $76.43
Bear Case $74.60 2.4% downside ($74.60 - $76.43) / $76.43 = -2.4% ROTCE 10.4% → 1.56x TBV
Fair Value $114.97 50.4% upside ($114.97 - $76.43) / $76.43 = 50.4% ROTCE 13.9% → 2.41x TBV
Bull Case $139.19 82.1% upside ($139.19 - $76.43) / $76.43 = 82.1% ROTCE 16.0% → 2.92x TBV

Adjust Assumptions

13.9%
8.1%

Key Value Driver

ROTCE (13.9%) vs. cost of equity (8.1%)

Implied Market Multiple 1.6x

Plain-Language Summary

With ROTCE of 13.9% vs. 8.1% cost of equity, fair P/TBV is 2.41x on $47.75 tangible book, implying $114.97 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.

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