RLI Corp. (DE) (RLI): Price and Financial Metrics

RLI Stock Price Chart Interactive Chart >

RLI Price/Volume Stats

RLI Corp. (DE) (RLI) Company Bio

RLI Corporation underwrites property and casualty insurance primarily in the United States. Its Casualty segment provides commercial and personal umbrella coverage products; and general liability products consisting of coverage for third party liability of commercial insureds, including manufacturers, contractors, apartments, real estate investment trusts, and mercantile. The company was founded in 1965 and is based in Peoria, Illinois.

RLI Price Forecast Based on DCF Valuation

The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Rli Corp. To summarize, we found that Rli Corp ranked in the 40th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 39.83%. In terms of the factors that were most noteworthy in this DCF analysis for RLI, they are:

• The company's balance sheet shows it gets 97% of its capital from equity, and 3% of its capital from debt. Notably, its equity weight is greater than 92.48% of US equities in the Financial Services sector yielding a positive free cash flow.
• The business' balance sheet reveals debt to be 3% of the company's capital (with equity being the remaining amount). Approximately merely 12.94% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
• RLI'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 48.4% of tickers in our DCF set.

AON, ICE, NDAQ, SAFT, and ICCH can be thought of as valuation peers to RLI, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.