Alleghany Corporation provides various insurance services in the United States. The company operates in two segments, Reinsurance and Insurance. The company was founded in 1929 and is based in New York, New York.
Y 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 Alleghany Corp. To summarize, we found that Alleghany Corp ranked in the 55th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 46.67%. As for the metrics that stood out in our discounted cash flow analysis of Alleghany Corp, consider:
The company's debt burden, as measured by earnings divided by interest payments, is 0.35 -- which is good for besting only 21.52% of its peer stocks (US stocks in the Financial Services sector with positive cash flow).
Alleghany Corp's weighted average cost of capital (WACC) is 10%; for context, that number is higher than 69.4% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as Y, try IVZ, NGHC, FFG, TCPC, and GBL.
How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]
Alleghany Corporation (NYSE:Y) today announced that it will release its financial results for the second quarter of 2020 after the market closes on Tuesday, August 4, 2020. In conjunction with the release, Alleghany will post its financial supplement to the company's website at www.alleghany.com.
In this article we will take a look at whether hedge funds think Alleghany Corporation (NYSE:Y) is a good investment right now. We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, unconventional data sources, expert networks, and get tips from […]