CUBI - Customers Bancorp, Inc.
Price:
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CONSENSUS:
Buy
DETAILS
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PRICE TARGET:
$93.50
DETAILS
HIGH:
$100.00
LOW:
$88.00
MEDIAN:
$93.00
CONSENSUS:
$93.50
UPSIDE:
17.52%
AlphaVal
Deterministic, archetype-aware fair value
Banks, Insurers & Asset Managers
85% confidence
Primary model: P/Tangible Book × ROE Quality
Adjust Assumptions
10.6%
12.5%
Key Value Driver
ROTCE (10.6%) vs. cost of equity (12.5%)
Implied Market Multiple
1.27x
Plain-Language Summary
With ROTCE of 10.6% vs. 12.5% cost of equity, fair P/TBV is 0.78x on $62.44 tangible book, implying $97.65 per share.
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.
Average Target (17 analysts)
$93.50
Analyst Range
$88.00 – $100.00
Divergence from AlphaVal
4%
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 (10.6%) is below the minimum investors require (12.5%). This means the bank is worth less than the net assets on its books.
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