Bank of Hawaii Corporation
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$90.25
Market Price
$68.72
Undervalued By
23.9%
Method: 5-year residual-income model: $38.81 starting book value per share; 14.0% return on equity held flat (in line with TTM); 9% cost of equity; 3% terminal growth; 39.45M shares outstanding.
Reasoning: Bank of Hawaii is a stable, mature regional bank whose value is best captured by book value plus the present value of returns earned above its cost of equity, rather than a free-cash-flow DCF; its consistently strong ~14% ROE relative to a 9% cost of equity for a well-capitalized regional bank supports a meaningful premium to book value.