E-L Financial Valuation

Q: What is the Fair Price of ELF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ELF (CA$1475) is trading below our estimate of [[fair value]] (CA$6187.93)

Is ELF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ELF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ELF (CA$1475) is trading below our estimate of fair value (CA$6187.93)

Significantly Below Fair Value: ELF is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ELF?

Key metric: As ELF is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ELF. This is calculated by dividing ELF's market cap by their current earnings.
What is ELF's PE Ratio?
PE Ratio	2.8x
Earnings	CA$1.76b
Market Cap	CA$4.97b

ELF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.7x
Enterprise Value/EBITDA	2.6x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does ELF's PE Ratio compare to its peers?

The above table shows the PE ratio for ELF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	10.2x
IAG iA Financial	12.9x	7.5%	CA$12.5b
SFC Sagicor Financial	1.2x	-74.5%	CA$867.3m
SLF Sun Life Financial	13.7x	6.8%	CA$48.5b
POW Power Corporation of Canada	13.1x	9.1%	CA$29.6b
ELF E-L Financial	2.8x	n/a	CA$5.0b

Price-To-Earnings vs Peers: ELF is good value based on its Price-To-Earnings Ratio (2.8x) compared to the peer average (10.2x).

Price to Earnings Ratio vs Industry

How does ELF's PE Ratio compare vs other companies in the North American Insurance Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ELF is good value based on its Price-To-Earnings Ratio (2.8x) compared to the North American Insurance industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is ELF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ELF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ELF's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Definity Financial

CA$6.6b

Offers property and casualty insurance products in Canada.

DFY

CA$59.19

5.1%

58.9%

iA Financial

CA$12.5b

Provides insurance and wealth management services in Canada and the United States.

IAG

CA$133.32

2.6%

50.4%

Trisura Group

CA$1.9b

A specialty insurance company, operates in the surety, risk solutions, corporate insurance, and reinsurance businesses in Canada, the United States, and internationally.

TSU

CA$39.51

-1.3%

22.0%