Old Republic International Corporation (ORI) Company Bio
Old Republic International Corporation underwrites and provides risk management services for a wide variety of coverages, principally in the property and liability, and title insurance fields. The company was founded in 1887 and is based in Chicago, Illinois.
ORI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ORI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Old Republic International Corp ranked in the 67th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 224.67% on a DCF basis. The most interesting components of our discounted cash flow analysis for Old Republic International Corp ended up being:
As a business, ORI is generating more cash flow than 71.66% of positive cash flow stocks in the Financial Services.
ORI'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 33.26% of tickers in our DCF set.
Old Republic International Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 34.06. This coverage rate is greater than that of 90.23% 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
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ORI, try NGHC, PZN, RE, WD, and ARGO.