RNR - RenaissanceRe Holdings Ltd.
Price:
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CONSENSUS:
Hold
DETAILS
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PRICE TARGET:
$332.29
DETAILS
HIGH:
$354.00
LOW:
$315.00
MEDIAN:
$329.00
CONSENSUS:
$332.29
UPSIDE:
3.58%
AlphaVal
Deterministic, archetype-aware fair value
Banks, Insurers & Asset Managers
85% confidence
Primary model: P/Tangible Book × ROE Quality
Adjust Assumptions
28.4%
6.0%
Key Value Driver
ROTCE (28.4%) vs. cost of equity (6.0%)
Implied Market Multiple
1.41x
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 $332.29 from 28 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $764.42 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: $42.53 (95% below our primary estimate). Large gaps suggest the dividend may not fully reflect the company's value.
Wall Street's average price target is $332.29 (from 28 analysts). Our estimate is 173% above 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