SEIC
SEI Investments Company
$104.72
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Overvalued
Trading 0.8% above fair value
You pay
$104.72
Bear
$72.69
Fair
$103.85
Bull
$135.00
Bear
$72.69
-30.6%
ROTCE 20.0% → 2.86x TBV
Fair
$103.85
-0.8%
ROTCE 25.0% → 4.00x TBV
Bull
$135.00
+28.9%
ROTCE 30.0% → 4.00x TBV
Key Value Driver
ROTCE (48.0%) vs. cost of equity (9.6%)
Implied Market Multiple
8.43x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $123.00 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $103.85 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