Everest Re Group, Ltd. logo RE - Everest Re Group, Ltd.

Inactive Ticker RE is not actively trading. Quotes and analytics may be stale.
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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 Strong
Trading 42.7% below fair value
Current Price $351.28
Bear Case $362.19 3.1% upside ($362.19 - $351.28) / $351.28 = 3.1% ROTCE 7.7% → 1.02x TBV
Fair Value $612.82 74.5% upside ($612.82 - $351.28) / $351.28 = 74.5% ROTCE 10.3% → 1.72x TBV
Bull Case $763.20 117.3% upside ($763.20 - $351.28) / $351.28 = 117.3% ROTCE 11.8% → 2.14x TBV

Adjust Assumptions

10.3%
7.7%

Key Value Driver

ROTCE (10.3%) vs. cost of equity (7.7%)

Implied Market Multiple 0.99x

Plain-Language Summary

With ROTCE of 10.3% vs. 7.7% cost of equity, fair P/TBV is 1.72x on $356.24 tangible book, implying $612.82 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