SPNT
SiriusPoint Ltd.
$25.41
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Strong
·
Conviction
Undervalued
Trading 62.4% below fair value
You pay
$25.41
Bear
$64.42
Fair
$67.65
Bull
$67.65
Bear
$64.42
+153.5%
ROTCE 17.5% → 3.81x TBV
Fair
$67.65
+166.2%
ROTCE 23.4% → 4.00x TBV
Bull
$67.65
+166.2%
ROTCE 26.9% → 4.00x TBV
Adjust Assumptions
23.4%
7.6%
Key Value Driver
ROTCE (23.4%) vs. cost of equity (7.6%)
Implied Market Multiple
1.5x
Summary
With ROTCE of 23.4% vs. 7.6% cost of equity, fair P/TBV is 4.00x on $16.91 tangible book, implying $67.65 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