GL
Globe Life Inc.
$156.28
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 43.1% below fair value
You pay
$156.28
Bear
$237.90
Fair
$274.43
Bull
$274.43
Bear
$237.90
+52.2%
ROTCE 14.6% → 3.47x TBV
Fair
$274.43
+75.6%
ROTCE 19.4% → 4.00x TBV
Bull
$274.43
+75.6%
ROTCE 22.4% → 4.00x TBV
Key Value Driver
ROTCE (19.4%) vs. cost of equity (7.0%)
Implied Market Multiple
2.03x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $174.33 from 28 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $274.43 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 $174.33 (from 28 analysts). Our estimate is 77% 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