SNV
Synovus Financial Corp.
$50.05
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Fair Value
Trading 15.9% below fair value
You pay
$50.05
Bear
$41.64
Fair
$59.49
Bull
$77.34
Bear
$41.64
-16.8%
ROTCE 7.7% → 0.52x TBV
Fair
$59.49
+18.9%
ROTCE 10.2% → 0.88x TBV
Bull
$77.34
+54.5%
ROTCE 11.7% → 1.10x TBV
Key Value Driver
ROTCE (10.2%) vs. cost of equity (11.0%)
Implied Market Multiple
1.47x
Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $70.00 from 32 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $59.49 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.
Return on equity (10.2%) is below the minimum investors require (11.0%). This means the bank is worth less than the net assets on its books.
Dividend-based valuation: $21.13 (62% 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