Fairfax Financial: Raising our Valuation to CAD 970

We are increasing our fair value estimate for no-moat Fairfax Financial to CAD 970 per share from CAD 790, after reassessing the company's prospects on the investment side given recent changes in capital market conditions. The company is navigating the current environment well, but we would note that Fairfax's investment performance has been spotty over time and includes some substantial losses along with impressive gains. Our fair value estimate equates to 0.9 times the book value at the end of the second quarter and 1.2 times the tangible book value. While we have raised our fair value estimate, we still see shares as a bit overvalued at the moment.