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Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 17
HOLD 11
SELL 0
STRONG
SELL
0
| PRICE TARGET: $131.20 DETAILS
HIGH: $150.00
LOW: $112.00
MEDIAN: $138.00
CONSENSUS: $131.20
UPSIDE: 23.54%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Banks, Insurers & Asset Managers 85% confidence

Primary model: P/Tangible Book × ROE Quality

Valuation Signal Overvalued Strong
Trading 60.6% above fair value
Current Price $106.20
Bear Case $61.70 41.9% downside ($61.70 - $106.20) / $106.20 = -41.9% ROTCE 20.0% → 4.00x TBV
Fair Value $66.14 37.7% downside ($66.14 - $106.20) / $106.20 = -37.7% ROTCE 25.0% → 4.00x TBV
Bull Case $85.99 19.0% downside ($85.99 - $106.20) / $106.20 = -19.0% ROTCE 30.0% → 4.00x TBV

Adjust Assumptions

36.8%
8.0%

Key Value Driver

ROTCE (36.8%) vs. cost of equity (8.0%)

Implied Market Multiple 10.24x

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 $131.20 from 28 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $66.14 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 $131.20 (from 28 analysts). Our estimate is 66% 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