W.R. Berkley Corporation operates as commercial lines writers primarily in the United States. The company operates in three segments: Insurance-Domestic, Insurance-International, and Reinsurance-Global. The company was founded in 1967 and is based in Greenwich, Connecticut.
WRB 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 Berkley W R Corp. To summarize, we found that Berkley W R Corp ranked in the 57th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Berkley W R Corp ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 80. Notably, its equity weight is greater than 60.81% of US equities in the Financial Services sector yielding a positive free cash flow.
Berkley W R Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 22.01% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CME, CRD.A, AMG, DFIN, and GHL can be thought of as valuation peers to WRB, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
W.R. Berkley (WRB) has earned a good reputation, with long-term core earnings and book value growth trends well above the average, as well as a strong underwriting history. Even so, while I can understand a “flight to safety” preference for this more specialty-oriented insurer, it’s tough to reconcile the current...
Stephen Simpson, CFA on Seeking Alpha | September 2, 2020
W. R. Berkley Corporation (WRB) Q2 2020 Earnings Conference Call July 21, 2020 17:00 ET Corporate Participants Rob Berkley - President and Chief Executive Officer Bill Berkley - Executive Chairman Rich Baio - Chief Financial Officer Conference Call participants Phil Stefano - Deutsche Bank Mike Zaremski - Credit Suisse Yaron...
W. R. Berkley Corporation is not under any obligation and expressly disclaims any such obligation to update or alter its forward looking statements whether as a result of new information, future events or otherwise. COVID-19-related losses represented 5.1 of these loss ratio points.