Fairfax: Increasing Our Fair Value Estimate

We are increasing our fair value estimate for Fairfax to CAD 1,180 per share from CAD 970 after reassessing the company's prospects on the investment side given recent changes in capital market conditions. Our fair value estimate equates to 1.0 times year-end 2023 book value and 1.4 times tangible book value. We still see the shares as materially overvalued from a long-term perspective. While the company is navigating the current capital market environment well, we would note that Fairfax's investment performance has been spotty over time. Although the company is riding high at the moment, its historical track record includes some substantial losses along with impressive gains.