* Note: Prices are in Million (M) USD.
Description:
First Hawaiian, Inc. is a banking holding company for First Hawaiian Bank providing a range of banking services to consumers and business customers in the United States.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $0 M
Debt : $0 M
EBITDA : $0 M
This criteria used industry in which company operates:
Sector: Financial services
Industry: Banks - regional - us
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 12.66
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 17 overlapping fiscal years (max 20).Average Free Cash Flow: $291 M
Average Revenue: $1,027 M
Revenue Converted To Free Cash Flow (%): 28.4%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,132 M
Revenue 4 Years Ago (2020-12-31): $758 M
Last 5 Years Average Revenue Growth: 10%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $128 M
Share Count 5 Years Ago (2020-12-31): $130 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.04
Trailing 12-Month Earnings Per Share (EPS): $2.06
Average Earnings Per Share (EPS): $2.05
Dividend Per Share (DPS): $1
Payout Ratio: 51%
Dividend Yield: 4%
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 4, 4 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 17 valid ROE years (max 20).Average ROE: 8.5%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $26
52-Week Low: $20
Threshold Price (15% Above 52-Week Low): $23
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $3,067 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 25 points to above First Hawaiian Inc (FHB) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• RCFC Based PE
32.71 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 9 Years Avg P/E (15.55)
× EPS ($2.05) = $31.88.
Last 9 Years Avg PE 15.55, Fair Value PE 15, Industry Based PE 13, Growth Based PE 9, RCFC Based PE 32.71, ROE Based PE 16.82, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 17.02. Value-Trades has assined P/E value 17.02. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.05.
The fair value of First Hawaiian Inc (FHB) stock should be (17.02 x $2.05) = $34.9.
