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:
Below please find a table outlining a discounted cash flow forecast for MKL, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Markel Corp ranked in the 68th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 188.67% on a DCF basis. As for the metrics that stood out in our discounted cash flow analysis of Markel Corp, consider:
The compound growth rate in the free cash flow of Markel Corp over the past 5.67 years is 0.19%; that's higher than 67.7% 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 merely 20.34% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
UIHC, SIGI, FNHC, ORI, and AIZ can be thought of as valuation peers to MKL, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
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...