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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Markel Corp. To summarize, we found that Markel Corp ranked in the 59th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 74.83%. 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 5.42 years is 0.15%; that's better than 60.28% 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 only 23.73% 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 MKL, try CB, MMAC, AFL, JHG, and GHL.
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...