Bank of HI (BHI) is a Chinese bank. Its total assets next year are expected to be RMB100 billion. The BHI has 500 million shares outstanding and will not issue new stocks or repurchase stocks.
Over the next five years, BHI’s assets are expected to grow at 10% per year. The BHI is expected to maintain an ROA of 3%, a cost of equity of 10%, and a assets-to-equity ratio of 10. After five years, BHI is expected to have an ROA of 2.5%, a cost of equity of 12%, and an assets-to-equity ratio of 12.
What is the intrinsic value per share of BPM’s stocks?