Reinsurance Group of America, Incorporated (RGA) Company Bio
Reinsurance Group of America engages in the reinsurance business. It offers individual and group life and health insurance products, including term life, credit life, universal life, whole life, group life and health, joint and last survivor insurance, critical illness, disability, and longevity products, as well as asset-intensive and financial reinsurance products. The company was founded in 1973 and is based in Chesterfield, Missouri.
RGA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Reinsurance Group Of America Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Reinsurance Group Of America Inc ranked in the 79th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 600.5%. In terms of the factors that were most noteworthy in this DCF analysis for RGA, they are:
Reinsurance Group Of America Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 10.93% of tickers in our DCF set.
Relative to other stocks in its sector (Financial Services), Reinsurance Group Of America Inc has a reliance on debt greater than 68.11% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
FAF, ECPG, OCN, HIG, and ADS can be thought of as valuation peers to RGA, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.