FOCS
Focus Financial Partners Inc.
$52.99
Banks, Insurers & Asset Managers
90%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Overvalued
Trading 209.1% above fair value
You pay
$52.99
Bear
$10.68
Fair
$17.14
Bull
$21.02
Bear
$10.68
-79.8%
ROTCE 8.9% → 0.67x TBV
Fair
$17.14
-67.6%
ROTCE 11.9% → 1.07x TBV
Bull
$21.02
-60.3%
ROTCE 13.7% → 1.32x TBV
Adjust Assumptions
11.9%
11.3%
Key Value Driver
ROTCE (11.9%) vs. cost of equity (11.3%)
Implied Market Multiple
3.32x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (15 analysts)
$56.00
Divergence from AlphaVal
69%
Summary
With ROTCE of 11.9% vs. 11.3% cost of equity, fair P/TBV is 1.07x on $15.96 tangible book, implying $17.14 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 $56.00 (from 15 analysts). Our estimate is 69% 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