SEIC
SEI Investments Company
$105.65
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Overvalued
Trading 6.7% above fair value
You pay
$105.65
Bear
$69.34
Fair
$99.06
Bull
$128.78
Bear
$69.34
-34.4%
ROTCE 20.0% → 2.84x TBV
Fair
$99.06
-6.2%
ROTCE 25.0% → 3.73x TBV
Bull
$128.78
+21.9%
ROTCE 30.0% → 4.00x TBV
Adjust Assumptions
48.0%
9.6%
Key Value Driver
ROTCE (48.0%) vs. cost of equity (9.6%)
Implied Market Multiple
8.51x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (14 analysts)
$123.00
Divergence from AlphaVal
19%
Summary
With ROTCE of 48.0% vs. 9.6% cost of equity, fair P/TBV is 3.73x on $12.42 tangible book, implying $99.06 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