EQH
Equitable Holdings, Inc.
$42.58
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 1.4% below fair value
You pay
$42.58
Bear
$30.23
Fair
$43.17
Bull
$56.12
Bear
$30.23
-29.0%
ROTCE 4.0% → 0.30x TBV
Fair
$43.17
+1.4%
ROTCE 0.0% → 0.30x TBV
Bull
$56.12
+31.8%
ROTCE 0.0% → 0.30x TBV
Key Value Driver
ROTCE (0.0%) vs. cost of equity (10.5%)
Implied Market Multiple
1.22x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $57.86 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $43.17 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 (0.0%) is below the minimum investors require (10.5%). This means the bank is worth less than the net assets on its books.
Dividend-based valuation: $58.21 (52% above our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $57.86 (from 21 analysts). Our estimate is 34% 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