Selective Insurance Group, Inc. (SIGI): Price and Financial Metrics

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SIGI Price/Volume Stats

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

We started the process of determining a valid price forecast for Selective Insurance Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Selective Insurance Group Inc ranked in the 66th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 68.5% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for SIGI, they are:

• The company's balance sheet shows it gets 89% of its capital from equity, and 11% of its capital from debt. Its equity weight surpasses that of 74.08% of free cash flow generating stocks in the Financial Services sector.
• SIGI'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 34.94% 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 14.81. This coverage rate is greater than that of 77.51% of stocks we're observing for the purpose of forecasting via discounted cash flows.

SCU, THG, ORI, AINC, and CNO 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.