FIGR
Figure Technology Solutions, Inc. Class A Common Stock
$33.95
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Overvalued
Trading 8.8% above fair value
You pay
$33.95
Bear
$18.87
Fair
$31.20
Bull
$36.22
Bear
$18.87
-44.4%
ROTCE 8.2% → 2.08x TBV
Fair
$31.20
-8.1%
ROTCE 10.9% → 3.45x TBV
Bull
$36.22
+6.7%
ROTCE 12.5% → 4.00x TBV
Key Value Driver
ROTCE (10.9%) vs. cost of equity (6.0%)
Implied Market Multiple
5.02x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $62.75 from 7 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $31.20 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.
Wall Street's average price target is $62.75 (from 7 analysts). Our estimate is 63% 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