Tortoise Energy Infrastructure Corporation logo TYG - Tortoise Energy Infrastructure Corporation

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
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HOLD 2
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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 74.8% below fair value
Current Price $44.36
Bear Case $123.45 178.3% upside ($123.45 - $44.36) / $44.36 = 178.3% ROTCE 4.0% → 0.30x TBV
Fair Value $176.35 297.5% upside ($176.35 - $44.36) / $44.36 = 297.5% ROTCE 2.0% → 0.30x TBV
Bull Case $229.26 416.8% upside ($229.26 - $44.36) / $44.36 = 416.8% ROTCE 2.3% → 0.30x TBV

Adjust Assumptions

2.0%
8.3%

Key Value Driver

ROTCE (2.0%) vs. cost of equity (8.3%)

Implied Market Multiple 0.78x

Plain-Language Summary

With ROTCE of 2.0% vs. 8.3% cost of equity, fair P/TBV is 0.30x on $57.07 tangible book, implying $176.35 per share. DDM cross-check: $69.33.

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.
⚠ Return on equity (2.0%) is below the minimum investors require (8.3%). This means the bank is worth less than the net assets on its books.
ℹ Dividend-based valuation: $69.33 (61% 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