Cathay General Bancorp

AI-generated fair value estimate for this company.

Method: Excess-return/justified-P/TBV bank model: tangible book value $38.00/share; normalized ROE 11.5%; 10% cost of equity (CRE loan concentration risk); 4% long-term tangible book growth; implied justified P/TBV 1.25x.

Reasoning: Cathay General is a community bank with meaningful commercial real estate concentration, so a residual-income/justified-P/TBV framework captures the credit-cycle risk better than a generic FCF DCF; the moderate cost of equity and modest growth reflect a mature, rate-sensitive regional bank rather than a high-growth franchise.