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 71th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 157.5% on a DCF basis. The most interesting components of our discounted cash flow analysis for Markel Corp ended up being:
The compound growth rate in the free cash flow of Markel Corp over the past 5.48 years is 0.2%; that's better than 71.34% of cash flow producing equities in the Financial Services sector, where it is classified.
Markel Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 17.86% 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 PFX, ADS, MMAC, SAMG, and PSEC.
AUSTIN, Texas, Jan. 19, 2021 /PRNewswire/ -- Overhaul, a real-time visibility and intelligence-driven risk management technology provider for supply chains, is working with Markel Specialty, a specialty insurer and division of Markel Corporation, to offer motor carriers competitive…