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AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 85% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Undervalued Moderate
Trading 37.1% below fair value
Current Price $25.98
Bear Case $38.87 49.6% upside ($38.87 - $25.98) / $25.98 = 49.6% ROTCE 11.5% → 3.77x TBV
Fair Value $41.27 58.9% upside ($41.27 - $25.98) / $25.98 = 58.9% ROTCE 15.4% → 4.00x TBV
Bull Case $41.27 58.9% upside ($41.27 - $25.98) / $25.98 = 58.9% ROTCE 17.7% → 4.00x TBV

Adjust Assumptions

15.4%
6.0%

Key Value Driver

ROTCE (15.4%) vs. cost of equity (6.0%)

Implied Market Multiple 2.52x

Plain-Language Summary

With ROTCE of 15.4% vs. 6.0% cost of equity, fair P/TBV is 4.00x on $10.32 tangible book, implying $41.27 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.
ℹ Financial statements were converted from INR into USD using USDINR at 0.0105 USD per INR.

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