VCTR
Victory Capital Holdings, Inc.
$112.28
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Overvalued
Trading 13.3% above fair value
You pay
$112.28
Bear
$69.34
Fair
$99.06
Bull
$128.78
Bear
$69.34
-38.2%
ROTCE 10.2% → 0.95x TBV
Fair
$99.06
-11.8%
ROTCE 13.6% → 1.47x TBV
Bull
$128.78
+14.7%
ROTCE 15.7% → 1.78x TBV
Adjust Assumptions
13.6%
10.5%
Key Value Driver
ROTCE (13.6%) vs. cost of equity (10.5%)
Implied Market Multiple
2.9x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (13 analysts)
$115.80
Divergence from AlphaVal
14%
Summary
With ROTCE of 13.6% vs. 10.5% cost of equity, fair P/TBV is 1.47x on $38.78 tangible book, implying $99.06 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