Markel Corporation markets and underwrites specialty insurance products in the United States and internationally. It operates through three segments: U.S. Insurance, International Insurance, and Reinsurance. The company was founded in 1930 and is based in Glen Allen, Virginia.
MKL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Markel Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Markel Corp ranked in the 58th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for MKL, they are:
The company's balance sheet shows it gets 80% of its capital from equity, and 20% of its capital from debt. Its equity weight surpasses that of 60.6% of free cash flow generating stocks in the Financial Services sector.
Markel Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 24.13% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Markel Corp? See THG, MMAC, AFL, CRD.A, and CB.
OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Long-Term Issuer Credit Rating (Long-Term ICR) of “bbb+” of Markel Corporation (Markel) and all of its Long-Term Issue Credit Ratings (Long-Term IRs) and indicative Long-Term IRs (see below for a detailed list of Long-Term IRs and indicative Long-Term IRs). AM Best also has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term ICRs of “a+” of all the members of the Markel North America Insurance Group (Markel NA)
Markel Corporation recently reported its second-quarter earnings, and it had a great quarter, improving on a dismal first quarter. The company continues to do a fantastic job of growing the earnings premiums while lowering its combined ratio to grow the profitability of the insurance segment. The equity portfolio rebounded for...