Bank Stocks: Cheap Opportunities for Contrarian Investors.
Following a two-day rally, it is time to take a closer look at bank valuations to consider which stocks may soar from here. One traditional way to measure a bank stock’s valuation is to divide the share price by tangible book value per share. Here’s an example of the problem with quarter-end book values. First Republic Bank is the cheapest stock on the list below, based on its closing price on Tuesday and its tangible book value, calculated by FactSet, as of Dec. 31.