SEIC
SEI Investments Company
$87.14
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Fair Value
Trading 12.3% below fair value
You pay
$87.14
Bear
$69.57
Fair
$99.38
Bull
$129.20
Bear
$69.57
-20.2%
ROTCE 20.0% → 2.82x TBV
Fair
$99.38
+14.1%
ROTCE 25.0% → 4.00x TBV
Bull
$129.20
+48.3%
ROTCE 30.0% → 4.00x TBV
Key Value Driver
ROTCE (48.0%) vs. cost of equity (9.7%)
Implied Market Multiple
7.03x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $100.67 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $99.38 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