Tiptree Financial Inc. has subsidiaries that operate in four industries: insurance and insurance services, specialty finance, asset management and real estate. The company was founded in 2007 and is based in New York, New York.
TIPT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for TIPT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Tiptree Inc ranked in the 47th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 17%. The most interesting components of our discounted cash flow analysis for Tiptree Inc ended up being:
The company's balance sheet shows it gets 30% of its capital from equity, and 70% of its capital from debt. Its equity weight surpasses that of just 9.2% of free cash flow generating stocks in the Financial Services sector.
Its compound free cash flow growth rate, as measured over the past 4.49 years, is -0.05% -- higher than only 18.88% of stocks in our DCF forecasting set.
Tiptree Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -0.84. This coverage rate is greater than that of only 21.34% 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
CME, SG, BRO, OFS, and SWKH can be thought of as valuation peers to TIPT, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
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OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to Fortegra Specialty Insurance Company (Fortegra Specialty) (Scottsdale, Arizona). Fortegra Specialty is ultimately owned by Tiptree Inc. [(NASDAQ:TIPT], the parent company of Fortegra Financial Corporation. The outlook assigned to these Credit Ratings (ratings) is stable. The ratings reflect Fortegra Specialty’s balance sheet strength, which AM Best c