Arch Capital Group Ltd. provides property, casualty, and mortgage insurance and reinsurance products worldwide. The Company operates in two underwriting segments: insurance and reinsurance and mortgage. The company was founded in 1995 and is based in Pembroke, Bermuda.
ACGL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ACGL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Arch Capital Group Ltd ranked in the 75th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 334.33%. In terms of the factors that were most noteworthy in this DCF analysis for ACGL, they are:
As a business, ACGL is generating more cash flow than 89.7% of positive cash flow stocks in the Financial Services.
Arch Capital Group Ltd's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 19.55% of tickers in our DCF set.
ACGL's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 19.55% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ACGL, try AMP, HCI, OXSQ, ESNT, and DGICA.
A consortium led by insurer Arch Capital Group Ltd. has made an approximately $500 million offer to acquire reinsurance firm Watford Holdings Ltd , people familiar with the matter said on Tuesday. The bid comes more than a year after …
The fact that Hurricane Laura managed to miss major cities like Houston and New Orleans means that insured losses (whether from wind or flood) should stay "quite manageable," Keefe, Bruyette & Woods says in its recap of the storm and insurers. Elsewhere in Notable Calls, Wells Fargo looked at property/casualty...
This Is What Hedge Funds Bought And Sold In The Second Quarter Tyler Durden Sun, 08/16/2020 - 13:00 In addition to the widely publicized changes in Berkshire Hathaway's portfolio, where as we previously reported Warren Buffett dumped a material amount of his bank holdings in addition to completely selling out of airlines, while making his first ever foray into precious metals with a new $ 563MM stake in Barrick Gold , there were other quite notable changes in hedge fund portfolios during Q2 as disclosed in the barrage of 13Fs filed on Friday. As Bloomberg recaps, the 13F filings show that even more hedge funds leaned in to the stay-at-home trade amid the Covid-19 pandemic. Of note, Home Depot was a top new buy for Balyasny Asset Management, while Pershing Square Capital Management and A...