MET
MetLife, Inc.
$97.14
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Overvalued
Trading 9.0% above fair value
You pay
$97.14
Bear
$62.37
Fair
$89.10
Bull
$115.83
Bear
$62.37
-35.8%
ROTCE 8.9% → 1.10x TBV
Fair
$89.10
-8.3%
ROTCE 11.9% → 1.77x TBV
Bull
$115.83
+19.2%
ROTCE 13.7% → 2.16x TBV
Adjust Assumptions
11.9%
8.5%
Key Value Driver
ROTCE (11.9%) vs. cost of equity (8.5%)
Implied Market Multiple
2.2x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (33 analysts)
$101.00
Divergence from AlphaVal
12%
Summary
With ROTCE of 11.9% vs. 8.5% cost of equity, fair P/TBV is 1.77x on $44.13 tangible book, implying $89.10 per share. DDM cross-check: $47.57.
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.
Dividend-based valuation: $47.57 (47% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
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