Is First Citizens BancShares ($FCNCA) Quietly Engineering a Banking Empire No One Saw Coming?
So I asked ChatGPT to try and simulate for me:
I created a bank that has a tangible book value (TBV) of $100, and trades at $130. So the price to tangible book value is 1.3 times (P/TBVPS). If the ROTCE is consistent and the valuation (P/TBVPS) doesn’t change, what will happen in ten years if you increase the book value by 7% and you take the rest and buy back the shares?
The Price will go up from $130 to $261 or you basically double your money in ten years.
That doesn’t always feel like fast growing…
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