MGIC Investment Corporation provides private mortgage insurance and ancillary services to lenders and government sponsored entities in the United States. The company was founded in 1957 and is based in Milwaukee, Wisconsin.
MTG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MTG, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Mgic Investment Corp ranked in the 90th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 2412% on a DCF basis. The most interesting components of our discounted cash flow analysis for Mgic Investment Corp ended up being:
In the past 4.75 years, Mgic Investment Corp has a compound free cash flow growth rate of 0.68%; that's higher than 90.64% of free cash flow generating stocks in the Financial Services sector.
Mgic Investment Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 19.35% of tickers in our DCF set.
MTG'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 19.35% 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 Mgic Investment Corp? See ENVA, LFC, ESGR, TREE, and GECC.
OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” of operating subsidiaries of MGIC Investment Corporation. The operating subsidiaries are Mortgage Guaranty Insurance Corporation, MGIC Indemnity Corporation, MGIC Assurance Corporation and MGIC Reinsurance Corporation of Wisconsin (collectively referred to as MGIC). The outlook of the Credit Ratings (ratings) is stable. All companies are domiciled
MGIC Investment (MTG) has staged a powerful rally from the depths of the Covid-19 lows in early April. The thesis of this article is that the stock is potentially very attractive, but there is a speculative element to buying it here due to the lack of an apparent horizon for...
MGIC Investment Corporation ([[MTG]] +1.5%) has commenced a public offering of its senior notes due 2028. The company also announced a tender offer to purchase any and all of the company's $425M of outstanding 5.750% senior notes due 2023. Net proceeds will be used to finance the Tender Offer, to...
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of MGIC Investment Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.