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. More precisely, our analysis suggests the stock is undervalued by approximately 1072.33% on a DCF basis. The most interesting components of our discounted cash flow analysis for Mgic Investment Corp ended up being:
The compound growth rate in the free cash flow of Mgic Investment Corp over the past 5 years is 0.59%; that's higher than 88.48% 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 15.62% 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 15.62% 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 ELVT, AINC, LPRO, AEL, and FDUS.
MGIC Investment Corporation (NYSE: MTG) has announced plans to release its fourth quarter 2020 financial results after the market closes on Tuesday, February 23, 2021. A conference call/webcast has been scheduled for 10:00 a.m. Eastern Time on Wednesday, February 24, 2021 to discuss the Company's results for the quarter ended December 31, 2020.
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