DBRG
DigitalBridge Group, Inc.
$15.80
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Fair Value
Trading 17.6% below fair value
You pay
$15.80
Bear
$13.43
Fair
$19.18
Bull
$24.94
Bear
$13.43
-15.0%
ROTCE 6.7% → 0.32x TBV
Fair
$19.18
+21.4%
ROTCE 8.9% → 0.59x TBV
Bull
$24.94
+57.8%
ROTCE 10.2% → 0.75x TBV
Key Value Driver
ROTCE (8.9%) vs. cost of equity (12.3%)
Implied Market Multiple
1.81x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $21.00 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $19.18 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.
Return on equity (8.9%) is below the minimum investors require (12.3%). This means the bank is worth less than the net assets on its books.
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