Selective Insurance Group, Inc. (SIGI) Company Bio
Selective Insurance Group provides insurance products and services in the United States. It operates in four segments: Standard Commercial Lines, Standard Personal Lines, excess and surplus (E&S) Lines, and Investments. The company was founded in 1925 and is based in Branchville, New Jersey.
SIGI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Selective Insurance Group Inc. To summarize, we found that Selective Insurance Group Inc ranked in the 68th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 157.5%. The most interesting components of our discounted cash flow analysis for Selective Insurance Group Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 81. Notably, its equity weight is greater than 63.3% of US equities in the Financial Services sector yielding a positive free cash flow.
Selective Insurance Group Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 21.2% of tickers in our DCF set.
Selective Insurance Group Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 8.63. This coverage rate is greater than that of 75.09% 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
CNFR, ORI, AIZ, SG, and TRV can be thought of as valuation peers to SIGI, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
Selective Insurance Group, Inc. (SIGI) Q2 2020 Results Earnings Conference Call July 30, 2020, 10:30 AM ET Company Participants Rohan Pai - Senior Vice President, Investor Relations and Treasurer John Marchioni - President and CEO Mark Wilcox - Chief Financial Officer Conference Call Participants Charlie Lederer - Credit Suisse Matt...
Selective Insurance (SIGI) declares $0.23/share quarterly dividend, in line with previous.Forward yield 1.58%Payable Sept. 1; for shareholders of record Aug. 14; ex-div Aug. 13.See SIGI Dividend Scorecard, Yield Chart, & Dividend Growth....