GL
Globe Life Inc.
$165.62
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 46.2% below fair value
You pay
$165.62
Bear
$299.80
Fair
$307.79
Bull
$307.79
Bear
$299.80
+81.0%
ROTCE 14.6% → 3.90x TBV
Fair
$307.79
+85.8%
ROTCE 19.4% → 4.00x TBV
Bull
$307.79
+85.8%
ROTCE 22.4% → 4.00x TBV
Adjust Assumptions
19.4%
6.7%
Key Value Driver
ROTCE (19.4%) vs. cost of equity (6.7%)
Implied Market Multiple
2.15x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (28 analysts)
$187.00
Divergence from AlphaVal
65%
Summary
With ROTCE of 19.4% vs. 6.7% cost of equity, fair P/TBV is 4.00x on $76.95 tangible book, implying $307.79 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 $187.00 (from 28 analysts). Our estimate is 65% 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