ENVA
Enova International, Inc.
$232.01
Banks, Insurers & Asset Managers
80%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Overvalued
Trading 28.9% above fair value
You pay
$232.01
Bear
$125.95
Fair
$179.93
Bull
$233.91
Bear
$125.95
-45.7%
ROTCE 20.0% → 2.29x TBV
Fair
$179.93
-22.4%
ROTCE 25.0% → 3.62x TBV
Bull
$233.91
+0.8%
ROTCE 30.0% → 3.72x TBV
Key Value Driver
ROTCE (29.3%) vs. cost of equity (11.0%)
Implied Market Multiple
5.48x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $240.00 from 10 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $179.93 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 $240.00 (from 10 analysts). Our estimate is 31% below 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