PRI
Primerica, Inc.
$276.79
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 12.9% below fair value
You pay
$276.79
Bear
$247.38
Fair
$317.88
Bull
$317.88
Bear
$247.38
-10.6%
ROTCE 20.0% → 3.11x TBV
Fair
$317.88
+14.8%
ROTCE 25.0% → 4.00x TBV
Bull
$317.88
+14.8%
ROTCE 30.0% → 4.00x TBV
Adjust Assumptions
30.7%
9.1%
Key Value Driver
ROTCE (30.7%) vs. cost of equity (9.1%)
Implied Market Multiple
3.48x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (18 analysts)
$301.33
Divergence from AlphaVal
5%
Summary
With ROTCE of 30.7% vs. 9.1% cost of equity, fair P/TBV is 4.00x on $79.47 tangible book, implying $317.88 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.
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