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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Mgic Investment Corp. To summarize, we found that Mgic Investment Corp ranked in the 88th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Mgic Investment Corp ended up being:
In the past 5 years, Mgic Investment Corp has a compound free cash flow growth rate of 0.59%; that's higher than 88.54% 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 15.9% of tickers in our DCF set.
MTG's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than merely 15.9% 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 AINC, ELVT, LPRO, FDUS, and AEL.
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MGIC Investment Corporation (NYSE: MTG) today issued an Operational Summary of the primary mortgage insurance of its insurance subsidiaries for the month of November 2020. The summary is also available on the company's investor website under Newsroom, Press Releases.