AlphaMadera's AlphaVal page classifies Cullen/Frost Bankers, Inc. as a Banks, Insurers & Asset Managers business and values it using P/Tangible Book × ROE Quality, then compares the result to the current market price to flag CFR as undervalued, fairly valued, or overvalued.

What is Cullen/Frost Bankers, Inc.'s fair value?

Fair value for CFR comes from a P/Tangible Book × ROE Quality model -- the approach AlphaVal selected for this company's Banks, Insurers & Asset Managers classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value CFR?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. CFR was classified as Banks, Insurers & Asset Managers and is valued using P/Tangible Book × ROE Quality, built from CFR's most recent reported fundamentals.

CFR - Cullen/Frost Bankers, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $158.86 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 85% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Undervalued Moderate

Trading 31.3% below fair value

Current Price $163.27

Bear Case $154.81 5.2% downside ($154.81 - $163.27) / $163.27 = -5.2% ROTCE 10.6% → 2.10x TBV

Fair Value $237.51 45.5% upside ($237.51 - $163.27) / $163.27 = 45.5% ROTCE 14.2% → 3.23x TBV

Bull Case $287.13 75.9% upside ($287.13 - $163.27) / $163.27 = 75.9% ROTCE 16.3% → 3.90x TBV

Adjust Assumptions

Return on Tangible Equity

14.2%

Cost of Equity

7.2%

Key Value Driver

ROTCE (14.2%) vs. cost of equity (7.2%)

Terminal Value % of EV

Implied Market Multiple 2.22x

Market is pricing in (growth)

Plain-Language Summary

With ROTCE of 14.2% vs. 7.2% cost of equity, fair P/TBV is 3.23x on $73.58 tangible book, implying $237.51 per share. DDM cross-check: $245.06.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (34 analysts) $158.86

Analyst Range $141.00 – $183.00

Divergence from AlphaVal 50%

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.

ℹ Wall Street's average price target is $158.86 (from 34 analysts). Our estimate is 50% above the consensus -- consider that gap carefully.

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