National General Holdings Corporation provides personal and commercial automobile, homeowners, umbrella, recreational vehicle, motorcycle, supplemental health, and other niche insurance products. The company was founded in 1939 and is based in New York, New York.
NGHC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for National General Holdings Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that National General Holdings Corp ranked in the 54th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for NGHC, they are:
The company's balance sheet shows it gets 85% of its capital from equity, and 15% of its capital from debt. Its equity weight surpasses that of 73.33% of free cash flow generating stocks in the Financial Services sector.
NGHC'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 28.86% of tickers in our DCF set.
National General Holdings Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 12.32. This coverage rate is greater than that of 81.19% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CME, SWKH, AFL, TCPC, and FFG can be thought of as valuation peers to NGHC, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
NEW YORK, Sept. 12, 2020 /PRNewswire/ -- Halper Sadeh LLP, a global investor rights law firm, is investigating: National General Holdings Corp. (NASDAQ: NGHC) concerning potential violations of the federal securities laws and/or breaches of fiduciary duties relating to its sale to The…
NEW YORK, NY / ACCESSWIRE / August 28, 2020 / Juan Monteverde, founder and managing partner at Monteverde & Associates PC, a national securities firm headquartered at the Empire State Building in New York City, is investigating: * Maxim Integrated Products, Inc.