Loews Corporation logo L - Loews Corporation

Price: -- -- | CONSENSUS: Buy DETAILS
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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 Fair Value Moderate
Trading 21.7% below fair value
Current Price $108.87
Bear Case $79.46 27.0% downside ($79.46 - $108.87) / $108.87 = -27.0% ROTCE 7.2% → 0.94x TBV
Fair Value $138.99 27.7% upside ($138.99 - $108.87) / $108.87 = 27.7% ROTCE 9.6% → 1.65x TBV
Bull Case $174.71 60.5% upside ($174.71 - $108.87) / $108.87 = 60.5% ROTCE 11.0% → 2.07x TBV

Adjust Assumptions

9.6%
7.4%

Key Value Driver

ROTCE (9.6%) vs. cost of equity (7.4%)

Implied Market Multiple 1.29x

Plain-Language Summary

With ROTCE of 9.6% vs. 7.4% cost of equity, fair P/TBV is 1.65x on $84.32 tangible book, implying $138.99 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