Insurance Australia Group Limited

DB:NRM Stock Report

Market Cap: €10.5b

Insurance Australia Group Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 NRM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€7.30
Fair Value
39.4% undervalued intrinsic discount
13
Number of Analysts

Below Fair Value: NRM (€4.42) is trading below our estimate of fair value (€7.3)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for NRM. This is calculated by dividing NRM's market cap by their current earnings.
What is NRM's PE Ratio?
PE Ratio14.3x
EarningsAU$1.27b
Market CapAU$18.10b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for NRM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.3x
TLX Talanx
12.5x5.2%€23.6b
HNR1 Hannover Rück
14.3x6.9%€32.1b
ADM Admiral Group
13.6x3.3%UK£9.0b
KNSL Kinsale Capital Group
25x8.8%US$10.4b
NRM Insurance Australia Group
14.3x-3.0%€18.1b

Price-To-Earnings vs Peers: NRM is expensive based on its Price-To-Earnings Ratio (14.3x) compared to the peer average (13.3x).

Price to Earnings Ratio vs Industry

How does NRM's PE Ratio compare vs other companies in the European Insurance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
NRM 14.3xIndustry Avg. 13.1xNo. of Companies17PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NRM is expensive based on its Price-To-Earnings Ratio (14.3x) compared to the European Insurance industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is NRM'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.

NRM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.3x
Fair PE Ratio9.9x

Price-To-Earnings vs Fair Ratio: NRM is expensive based on its Price-To-Earnings Ratio (14.3x) compared to the estimated Fair Price-To-Earnings Ratio (9.9x).

Analyst Price Targets

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

The above table shows the analyst NRM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€4.42
€4.93
+11.6%
8.6%€5.66€3.95n/a13
Mar ’26€4.66
€5.06
+8.5%
8.6%€5.80€4.05n/a13
Feb ’26€5.40
€5.13
-5.0%
9.9%€5.82€4.02n/a13
Jan ’26€5.00
€5.10
+2.1%
9.9%€5.89€4.13n/a13
Dec ’25€5.10
€4.90
-3.8%
9.6%€5.86€4.13n/a13
Nov ’25€4.36
€4.58
+5.0%
7.8%€5.09€3.82n/a12
Oct ’25€4.40
€4.62
+5.0%
7.5%€5.13€3.92n/a12
Sep ’25€4.50
€4.43
-1.5%
9.1%€5.01€3.73n/a13
Aug ’25€4.36
€4.33
-0.7%
9.6%€4.89€3.62n/a13
Jul ’25€4.28
€4.28
+0.08%
10.1%€5.02€3.72n/a13
Jun ’25€3.70
€3.91
+5.6%
6.8%€4.41€3.34n/a14
May ’25€3.84
€3.86
+0.5%
7.2%€4.37€3.31n/a14
Apr ’25€3.78
€3.76
-0.6%
6.2%€4.19€3.29n/a14
Mar ’25€3.62
€3.73
+3.1%
5.5%€4.09€3.31€4.6614
Feb ’25€3.58
€3.66
+2.1%
5.6%€3.99€3.32€5.4013
Jan ’25€3.42
€3.68
+7.7%
5.1%€3.97€3.33€5.0013
Dec ’24€3.52
€3.54
+0.6%
7.5%€3.90€3.06€5.1014
Nov ’24€3.36
€3.54
+5.4%
7.5%€3.90€3.06€4.3614
Oct ’24€3.40
€3.52
+3.6%
7.5%€3.89€3.05€4.4014
Sep ’24€3.38
€3.49
+3.2%
7.4%€3.86€3.02€4.5014
Aug ’24€3.52
€3.42
-2.9%
7.3%€3.76€2.89€4.3614
Jul ’24€3.40
€3.32
-2.3%
7.1%€3.70€2.88€4.2814
Jun ’24€3.10
€3.21
+3.7%
7.4%€3.49€2.61€3.7015
May ’24€2.92
€3.23
+10.5%
7.8%€3.54€2.65€3.8413
Apr ’24€2.82
€3.34
+18.4%
7.5%€3.68€2.77€3.7813
Mar ’24€2.90
€3.34
+15.1%
7.5%€3.68€2.77€3.6213
Analyst Price Target
Consensus Narrative from 13 Analysts
€4.83
Fair Value
8.5% undervalued intrinsic discount
13
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/03/09 04:07
End of Day Share Price 2025/03/07 00:00
Earnings2024/12/31
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Insurance Australia Group Limited is covered by 26 analysts. 11 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Brett Le MesurierAxiome Equities
Andrew AdamsBarrenjoey Markets Pty Limited
Benjamin BrayshawBarrenjoey Markets Pty Limited