=== SUMMARY ===
- The post presents a data table showing major US bank valuations, noting that nearly all are trading above book value, even those with low Return on Assets (ROA).
- The author's thesis is a questioning observation: that current Price-to-Book (P/B) valuations appear historically high relative to profitability (ROA), prompting speculation on whether the market is anticipating improved interest spreads.
- Quality assessment: Well-researched DD based on specific, comparable fundamental metrics. The data is sourced and presented clearly, though the conclusion is exploratory rather than conclusive.
=== SENTIMENT ===
MIXED
=== TRADE IDEAS ===
No actionable trade ideas in this post.
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▶ Полный текст поста
Every now and then I go and check how bank stocks are valued. As a general rule, what I usually see is that banks that earn more than 1% on their assets sell at between 1 and 2 times their book value, and banks that earn less than 1% on their assets sell at less than their book value.
I checked again today, and almost everything is selling over their book value. Even Citigroup and Capital One that earns 0.54% and 0.37% on their assets is selling for more than its book value.
Is there a reason for this? Are we expecting their interest spreads to increase for some reason?
|Ticker|Total Assets|ROA|P/B|ROE|Latest Filing |
|:-|:-|:-|:-|:-|:-|
|JPM|$4.42T|1.29%|2.48|15.74%|2025-12-31|
|BAC|$3.41T|0.89%|1.37|10.06%|2025-12-31|
|C|$2.66T|0.54%|1.01|6.74%|2025-12-31|
|WFC|$2.15T|0.99%|1.67|11.78%|2025-12-31|
|GS|$1.81T|0.92%|1.92|13.40%|2025-09-30|
|MS|$1.42T|1.19%|2.53|15.10%|2025-12-31|
|USB|$695.4B|1.03%|1.19|11.35%|2025-09-30|
|COF|$669.0B|0.37%|1.37|2.16%|2025-12-31|
|PNC|$568.8B|0.22%|1.35|2.13%|2025-09-30|
I got the analysis from the Atlantis Data Solutions website.