UVE
Universal Insurance Holdings, Inc.
$47.08
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Moderate
·
Conviction
Fair Value
Trading 22.5% below fair value
You pay
$47.08
Bear
$58.76
Fair
$60.72
Bull
$60.72
Bear
$58.76
+24.8%
ROTCE 20.0% → 3.87x TBV
Fair
$60.72
+29.0%
ROTCE 25.0% → 4.00x TBV
Bull
$60.72
+29.0%
ROTCE 30.0% → 4.00x TBV
Adjust Assumptions
43.3%
8.1%
Key Value Driver
ROTCE (43.3%) vs. cost of equity (8.1%)
Implied Market Multiple
3.1x
Summary
With ROTCE of 43.3% vs. 8.1% cost of equity, fair P/TBV is 4.00x on $15.18 tangible book, implying $60.72 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