ENVA
Enova International, Inc.
$157.51
Banks, Insurers & Asset Managers
80%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 8.3% below fair value
You pay
$157.51
Bear
$120.28
Fair
$171.83
Bull
$223.38
Bear
$120.28
-23.6%
ROTCE 20.0% → 2.11x TBV
Fair
$171.83
+9.1%
ROTCE 25.0% → 3.33x TBV
Bull
$223.38
+41.8%
ROTCE 30.0% → 3.42x TBV
Key Value Driver
ROTCE (29.3%) vs. cost of equity (11.6%)
Implied Market Multiple
3.72x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $199.50 from 10 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $171.83 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.
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