Estimated tangible book value
dilution at closing of 3.8% is expected to be earned back in approximately 3.3 years using the "cross-over" method, including estimated pre-tax merger-related charges of approximately USD 30 million.
RenaissanceRe said it expects that the transaction will be immediately accretive to book value per share, tangible book value
per share, operating earnings per share and operating return on equity.
The bank trades at 11.5 times earnings and 1.2 times tangible book value
. If Goldman Sachs maintains its global preeminence in equities underwriting/mergers advisory and moves up the league table in its FICC trading franchise (now a mere sixth), while cutting compensation, Goldman can well achieve the operating leverage and increase tangible book value
by seven per cent in 2018.
Tangible book value
per common share as of 2019 first quarter-end was USD 7.67, an 8% year-over-year increase.
Tangible book value
per share of $13.39 as of March 31, 2018 increased 6.2% compared to tangible book value
per share of $12.61 as of March 31, 2017.
At 47, Citigroup shares trade at a significant 15 per cent discount to its book value, unlike its money-centre bank peers JPMorgan, Bank of America and Wells Fargo, who all trade at tangible book value
multiples of 1.5, 1.3 and two, respectively.
As per the agreement, shareholders will receive consideration worth the HNB tangible book value
per share at the consummation of the merger, with more than forty percent contribution in GNB common stock, and less than sixty percent 60 percent in cash.
In fact, the intellectual assets of a company are often worth three or four times the company's tangible book value
. While it's more obvious how this can happen with the service sector and information or technology companies, it's increasingly applicable in other sectors, including manufacturing, where experts estimate that about 75 percent of the market value comes from knowledge.
Based on NWIN's closing stock price of USD 43.00 as of July 30, 2018, the merger consideration has an aggregate value of approximately USD 34.6 million, which represents approximately 109% of tangible book value
The transaction is valued at USD 31.7m, or 155% of Home City's tangible book value
as of March 31, 2018.