MarketAxess Holdings Inc. logo MKTX - MarketAxess Holdings Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 3
HOLD 16
SELL 4
STRONG
SELL
0
| PRICE TARGET: $192.00 DETAILS
HIGH: $215.00
LOW: $170.00
MEDIAN: $195.00
CONSENSUS: $192.00
UPSIDE: 40.01%
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 24.4% below fair value
Current Price $137.13
Bear Case $126.99 7.4% downside ($126.99 - $137.13) / $137.13 = -7.4% ROTCE 20.0% → 2.99x TBV
Fair Value $181.42 32.3% upside ($181.42 - $137.13) / $137.13 = 32.3% ROTCE 25.0% → 4.00x TBV
Bull Case $235.85 72.0% upside ($235.85 - $137.13) / $137.13 = 72.0% ROTCE 30.0% → 4.00x TBV

Adjust Assumptions

32.8%
9.4%

Key Value Driver

ROTCE (32.8%) vs. cost of equity (9.4%)

Implied Market Multiple 6.49x

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 $192.00 from 23 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $181.42 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.
Dividend-based valuation: $46.14 (74% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.

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