TRMK - Trustmark Corporation
Price:
--
--
|
CONSENSUS:
Hold
DETAILS
|
PRICE TARGET:
$45.50
DETAILS
HIGH:
$45.50
LOW:
$45.50
MEDIAN:
$45.50
CONSENSUS:
$45.50
DOWNSIDE:
2.38%
AlphaVal
Deterministic, archetype-aware fair value
Banks, Insurers & Asset Managers
85% confidence
Primary model: P/Tangible Book × ROE Quality
Adjust Assumptions
12.5%
7.8%
Key Value Driver
ROTCE (12.5%) vs. cost of equity (7.8%)
Implied Market Multiple
1.53x
Plain-Language Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $45.50 from 9 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $63.49 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: $15.13 (78% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $45.50 (from 9 analysts). Our estimate is 49% above 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