Is First Citizens BancShares ($FCNCA) Quietly Engineering a Banking Empire No One Saw Coming?
We can’t just say look at ROE or ROTCE if we cannot even buy at book value.
Many might have heard you should buy banks at close to 1 times book value. Typically banks can trade higher than book value. When crisis or recession comes along, they have to sell their assets at discounted prices and this is where their book value gets cut and the company bottoms out below book value.
So the 1 times book value is the pivot point between whether things have gotten frothy.
But Victaurs likely would have more nuance to this.
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