FG
F&G Annuities & Life, Inc.
$27.79
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 57.1% below fair value
You pay
$27.79
Bear
$45.33
Fair
$64.76
Bull
$84.19
Bear
$45.33
+63.1%
ROTCE 4.1% → 0.30x TBV
Fair
$64.76
+133.0%
ROTCE 5.5% → 0.30x TBV
Bull
$84.19
+202.9%
ROTCE 6.3% → 0.31x TBV
Key Value Driver
ROTCE (5.5%) vs. cost of equity (11.7%)
Implied Market Multiple
0.77x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $31.00 from 9 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $64.76 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 (5.5%) is below the minimum investors require (11.7%). This means the bank is worth less than the net assets on its books.
Wall Street's average price target is $31.00 (from 9 analysts). Our estimate is 136% 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