Third Point Reinsurance Ltd. Common Shares (TPRE) Company Bio
Third Point Reinsurance Ltd. provides various specialty property and casualty reinsurance products in the Americas, Europe, the Middle East, Africa, and Asia. The company operates in two segments, Property and Casualty Reinsurance, and Catastrophe Risk Management. The company was founded in 2011 and is based in Pembroke, Bermuda.
TPRE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Third Point Reinsurance Ltd with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Third Point Reinsurance Ltd ranked in the 95th 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 TPRE, they are:
In the past 5.5 years, Third Point Reinsurance Ltd has a compound free cash flow growth rate of 1.28%; that's better than 96% of cash flow producing equities in the Financial Services sector, where it is classified.
Third Point Reinsurance Ltd's effective tax rate, as measured by taxes paid relative to net income, is at 1 -- greater than only 24.1% of US stocks with positive free cash flow.
Third Point Reinsurance Ltd's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -13.13. This coverage rate is greater than that of merely 6.33% 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
SUNS, NMIH, JRVR, MCC, and AMTD can be thought of as valuation peers to TPRE, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
Image source: The Motley Fool. Third Point Reinsurance (NYSE: TPRE)Q1 2020 Earnings CallMay 08, 2020, 8:30 a.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: OperatorGreetings, and welcome to the Third Point Reinsurance first-quarter 2020 earnings conference.