GL
Globe Life Inc.
$179.17
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Undervalued
Trading 34.9% below fair value
You pay
$179.17
Bear
$252.30
Fair
$275.29
Bull
$275.29
Bear
$252.30
+40.8%
ROTCE 14.6% → 3.67x TBV
Fair
$275.29
+53.6%
ROTCE 19.4% → 4.00x TBV
Bull
$275.29
+53.6%
ROTCE 22.4% → 4.00x TBV
Key Value Driver
ROTCE (19.4%) vs. cost of equity (6.9%)
Implied Market Multiple
2.33x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $177.80 from 28 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $275.29 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 $177.80 (from 28 analysts). Our estimate is 73% 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