EG
Everest Group, Ltd.
$382.57
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 64.6% below fair value
You pay
$382.57
Bear
$664.49
Fair
$1,079.60
Bull
$1,161.71
Bear
$664.49
+73.7%
ROTCE 8.6% → 2.29x TBV
Fair
$1,079.60
+182.2%
ROTCE 11.4% → 3.72x TBV
Bull
$1,161.71
+203.7%
ROTCE 13.1% → 4.00x TBV
Key Value Driver
ROTCE (11.4%) vs. cost of equity (6.0%)
Implied Market Multiple
1.09x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $397.25 from 22 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $1079.60 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.
Dividend-based valuation: $758.60 (42% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $397.25 (from 22 analysts). Our estimate is 229% 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