CBOE
Cboe Global Markets, Inc.
$357.35
Banks, Insurers & Asset Managers
80%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Overvalued
Trading 75.1% above fair value
You pay
$357.35
Bear
$142.88
Fair
$204.12
Bull
$265.36
Bear
$142.88
-60.0%
ROTCE 20.0% → 4.00x TBV
Fair
$204.12
-42.9%
ROTCE 25.0% → 4.00x TBV
Bull
$265.36
-25.7%
ROTCE 30.0% → 4.00x TBV
Key Value Driver
ROTCE (159.3%) vs. cost of equity (6.3%)
Implied Market Multiple
54.15x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $314.40 from 31 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $204.12 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.
Wall Street's average price target is $314.40 (from 31 analysts). Our estimate is 50% below the consensus -- consider that gap carefully.
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