FG
F&G Annuities & Life, Inc.
$30.65
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 52.8% below fair value
You pay
$30.65
Bear
$45.47
Fair
$64.96
Bull
$84.45
Bear
$45.47
+48.4%
ROTCE 4.1% → 0.30x TBV
Fair
$64.96
+111.9%
ROTCE 5.5% → 0.30x TBV
Bull
$84.45
+175.5%
ROTCE 6.3% → 0.32x TBV
Key Value Driver
ROTCE (5.5%) vs. cost of equity (11.4%)
Implied Market Multiple
0.85x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $32.00 from 9 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $64.96 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 (11.4%). This means the bank is worth less than the net assets on its books.
Wall Street's average price target is $32.00 (from 9 analysts). Our estimate is 129% 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