Capital One Financial Corporation

AI-generated fair value estimate for this company.

Method: Excess-return (residual income) model on tangible book value: $89.73 per share tangible book value, from $55.04B tangible common equity divided by 613.48M shares; normalized return on tangible common equity of 18.5% on TTM net income of $10.20B; 11% cost of equity; 4% long-run earnings growth; implied justified price-to-tangible-book of 2.08x applied to tangible book value per share.

Reasoning: Following the Discover acquisition, Capital One's value is best framed around its return on tangible common equity relative to its cost of equity, consistent with how large consumer-lending banks are typically valued, rather than a free-cash-flow DCF; its high ROTCE reflects the combined scale of its card, auto, and Discover network economics.