CRBG
Corebridge Financial, Inc.
$30.84
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 67.8% below fair value
You pay
$30.84
Bear
$67.12
Fair
$95.88
Bull
$124.64
Bear
$67.12
+117.6%
ROTCE 4.0% → 0.30x TBV
Fair
$95.88
+210.9%
ROTCE -2.8% → 0.30x TBV
Bull
$124.64
+304.1%
ROTCE -3.2% → 0.30x TBV
Key Value Driver
ROTCE (-2.8%) vs. cost of equity (10.0%)
Implied Market Multiple
1.05x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $35.83 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $95.88 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.
Return on equity (-2.8%) is below the minimum investors require (10.0%). This means the bank is worth less than the net assets on its books.
Wall Street's average price target is $35.83 (from 18 analysts). Our estimate is 223% 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