CNS
Cohen & Steers, Inc.
$68.86
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 11.1% below fair value
You pay
$68.86
Bear
$54.24
Fair
$77.48
Bull
$100.72
Bear
$54.24
-21.2%
ROTCE 20.0% → 2.29x TBV
Fair
$77.48
+12.5%
ROTCE 25.0% → 3.00x TBV
Bull
$100.72
+46.3%
ROTCE 30.0% → 3.72x TBV
Adjust Assumptions
28.3%
11.0%
Key Value Driver
ROTCE (28.3%) vs. cost of equity (11.0%)
Implied Market Multiple
6.53x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (13 analysts)
$88.00
Divergence from AlphaVal
12%
Summary
With ROTCE of 28.3% vs. 11.0% cost of equity, fair P/TBV is 3.00x on $10.54 tangible book, implying $77.48 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