EQH
Equitable Holdings, Inc.
$53.17
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 45.9% below fair value
You pay
$53.17
Bear
$68.80
Fair
$98.28
Bull
$127.76
Bear
$68.80
+29.4%
ROTCE 4.0% → 0.30x TBV
Fair
$98.28
+84.8%
ROTCE 0.0% → 0.30x TBV
Bull
$127.76
+140.3%
ROTCE 0.0% → 0.30x TBV
Adjust Assumptions
0.0%
10.3%
Key Value Driver
ROTCE (0.0%) vs. cost of equity (10.3%)
Implied Market Multiple
1.41x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (21 analysts)
$64.71
Divergence from AlphaVal
52%
Summary
With ROTCE of 0.0% vs. 10.3% cost of equity, fair P/TBV is 0.30x on $37.80 tangible book, implying $98.28 per share. DDM cross-check: $65.92.
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 (0.0%) is below the minimum investors require (10.3%). This means the bank is worth less than the net assets on its books.
Dividend-based valuation: $65.92 (33% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $64.71 (from 21 analysts). Our estimate is 52% 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