CNS
Cohen & Steers, Inc.
$71.84
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 6.9% below fair value
You pay
$71.84
Bear
$54.03
Fair
$77.18
Bull
$100.34
Bear
$54.03
-24.8%
ROTCE 20.0% → 2.21x TBV
Fair
$77.18
+7.4%
ROTCE 25.0% → 3.35x TBV
Bull
$100.34
+39.7%
ROTCE 30.0% → 3.59x TBV
Key Value Driver
ROTCE (28.3%) vs. cost of equity (11.2%)
Implied Market Multiple
6.81x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $76.00 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $77.18 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