RenaissanceRe Holdings Ltd. provides reinsurance and insurance coverages and related services in the United States and internationally. The company operates in three segments: Catastrophe Reinsurance, Specialty Reinsurance, and Lloyds. The company was founded in 1993 and is based in Pembroke, Bermuda.
RNR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RNR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Renaissancere Holdings Ltd ranked in the 85th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 746%. In terms of the factors that were most noteworthy in this DCF analysis for RNR, they are:
RNR'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 27.88% of tickers in our DCF set.
As a business, Renaissancere Holdings Ltd experienced a tax rate of about 1% over the past twelve months; relative to its sector (Financial Services), this tax rate is higher than just 23.93% of stocks generating free cash flow.
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 Renaissancere Holdings Ltd? See RM, MFC, FDUS, JEF, and AEL.
RenaissanceRe Holdings (NYSE:RNR) will be releasing its next round of earnings this Tuesday, January 26. For all of the relevant information, here is your guide for Tuesday's Q4 earnings announcement.What Are Earnings, Net Income, And Earnings Per Share? Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.Earnings And Revenue Based on RenaissanceRe Holdings management projections, analysts predict EPS of $1.27 on revenue of $1.26 billion. In the same quarter last year, RenaissanceRe Holdings reported earnings per share of $0.52 on revenue of $1.10 billion.What Are Analyst Es...