COF - Capital One Financial Corporation
Price:
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CONSENSUS:
Buy
DETAILS
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PRICE TARGET:
$253.82
DETAILS
HIGH:
$300.00
LOW:
$229.00
MEDIAN:
$255.00
CONSENSUS:
$253.82
UPSIDE:
26.05%
AlphaVal
Deterministic, archetype-aware fair value
Banks, Insurers & Asset Managers
80% confidence
Primary model: P/Tangible Book × ROE Quality
Adjust Assumptions
3.6%
9.9%
Key Value Driver
ROTCE (3.6%) vs. cost of equity (9.9%)
Implied Market Multiple
1.81x
Plain-Language Summary
Our base-case estimate uses P/Tangible Book × ROE Quality. We then blend that result with the average analyst price target of $253.82 from 57 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $205.35 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.
Return on equity (3.6%) is below the minimum investors require (9.9%). This means the bank is worth less than the net assets on its books.
Wall Street's average price target is $253.82 (from 57 analysts). Our estimate is 29% below 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