PIPR - Piper Sandler Companies
Price:
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CONSENSUS:
Hold
DETAILS
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PRICE TARGET:
$97.58
DETAILS
HIGH:
$99.50
LOW:
$96.25
MEDIAN:
$97.00
CONSENSUS:
$97.58
UPSIDE:
20.95%
AlphaVal
Deterministic, archetype-aware fair value
Banks, Insurers & Asset Managers
85% confidence
Primary model: P/Tangible Book × ROE Quality
Adjust Assumptions
29.5%
12.4%
Key Value Driver
ROTCE (29.5%) vs. cost of equity (12.4%)
Implied Market Multiple
6.02x
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 $97.58 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $72.76 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.
Wall Street's average price target is $97.58 (from 11 analysts). Our estimate is 32% 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