State-owned (SOE) banks currently trade at premium P/B valuations to private banks in Vietnam based on a conventional P/B vs ROE scan. In our fundamental research, we value banks using both residual income and target P/B methodologies. Among the 11 banks under our coverage, the three SOE banks are the only banks for which our residual income valuations are lower than our target P/B valuations. In this report, we apply statistical models to recent historical data to investigate the relationship