VOYA
Voya Financial, Inc.
$98.42
Banks, Insurers & Asset Managers
85%
P/Tangible Book × ROE Quality
Mild
·
Conviction
Overvalued
Trading 1.7% above fair value
You pay
$98.42
Bear
$62.06
Fair
$96.76
Bull
$117.58
Bear
$62.06
-36.9%
ROTCE 9.9% → 1.14x TBV
Fair
$96.76
-1.7%
ROTCE 13.2% → 1.77x TBV
Bull
$117.58
+19.5%
ROTCE 15.2% → 2.15x TBV
Adjust Assumptions
13.2%
9.2%
Key Value Driver
ROTCE (13.2%) vs. cost of equity (9.2%)
Implied Market Multiple
1.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (27 analysts)
$104.89
Divergence from AlphaVal
8%
Summary
With ROTCE of 13.2% vs. 9.2% cost of equity, fair P/TBV is 1.77x on $54.67 tangible book, implying $96.76 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