AX
Axos Financial, Inc.
$86.07
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 6.8% below fair value
You pay
$86.07
Bear
$64.67
Fair
$92.39
Bull
$120.11
Bear
$64.67
-24.9%
ROTCE 12.9% → 1.19x TBV
Fair
$92.39
+7.3%
ROTCE 17.2% → 1.77x TBV
Bull
$120.11
+39.6%
ROTCE 19.8% → 2.11x TBV
Key Value Driver
ROTCE (17.2%) vs. cost of equity (11.5%)
Implied Market Multiple
1.94x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $111.00 from 19 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $92.39 per share.
Warnings
Traditional cash flow models don't work well for banks — lending activity distorts how much cash the business actually generates.
Common valuation shortcuts don't apply here — for banks, interest payments are a core business cost, not overhead.
Key Risks
- Book value quality matters as much as level — check loan loss reserves
- Interest rate sensitivity creates non-linear earnings surprises
- Insurance reserving is actuarial, not financial — errors emerge slowly