CRBG
Corebridge Financial, Inc.
$34.84
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 64.0% below fair value
You pay
$34.84
Bear
$67.70
Fair
$96.72
Bull
$125.74
Bear
$67.70
+94.3%
ROTCE 4.0% → 0.30x TBV
Fair
$96.72
+177.6%
ROTCE -2.8% → 0.30x TBV
Bull
$125.74
+260.9%
ROTCE -3.2% → 0.30x TBV
Adjust Assumptions
-2.8%
9.9%
Key Value Driver
ROTCE (-2.8%) vs. cost of equity (9.9%)
Implied Market Multiple
1.18x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (18 analysts)
$38.50
Divergence from AlphaVal
151%
Summary
With ROTCE of -2.8% vs. 9.9% cost of equity, fair P/TBV is 0.30x on $29.61 tangible book, implying $96.72 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 (9.9%). This means the bank is worth less than the net assets on its books.
Wall Street's average price target is $38.50 (from 18 analysts). Our estimate is 151% 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