@Jausty1919, Thanks for that contribution. Interesting valuation...

@Jausty1919,

Thanks for that contribution. Interesting valuation insights.

I thought that your referencing of the P/B ratios of peers is instructive for 2 reasons:

1. It shows that CYB to be undervalued relative to its peers, as you rightly point out; and
2. The peer group itself also seems to me to be be under-valued, thereby providing an added valuation buffer for CYB

I'm guessing that at some stage over the remainder of my investing career, Brexit will have run its course (whatever that course might take) and things will normalise again.

In that case a 12% RoTE financial institution will, I strongly suspect, be trading at a P/B closer to 0.9x or even parity, than 0.7x. That would imply a share price above $5.50

But, as an interim valuation point between now and then, your 0.7x figure is eminently reasonable, I think.