COOP
Mr. Cooper Group Inc.
$210.79
Banks, Insurers & Asset Managers
90%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Overvalued
Trading 44.4% above fair value
You pay
$210.79
Bear
$102.17
Fair
$145.97
Bull
$189.76
Bear
$102.17
-51.5%
ROTCE 10.4% → 1.03x TBV
Fair
$145.97
-30.8%
ROTCE 13.9% → 1.59x TBV
Bull
$189.76
-10.0%
ROTCE 16.0% → 1.92x TBV
Key Value Driver
ROTCE (13.9%) vs. cost of equity (10.2%)
Implied Market Multiple
2.8x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $118.43 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $145.97 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 $118.43 (from 12 analysts). Our estimate is 29% above 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