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:
Below please find a table outlining a discounted cash flow forecast for SIGI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Selective Insurance Group Inc ranked in the 60th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. 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 87% of its capital from equity, and 13% of its capital from debt. Notably, its equity weight is greater than 69.02% of US equities in the Financial Services sector yielding a positive free cash flow.
Selective Insurance Group Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at 10.99. This coverage rate is greater than that of 74.7% 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
ORI, AJG, ALL, ESGR, and SAMG 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.