W. R. Berkley Valuation

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

WRB * (MX$912.67) is trading below our estimate of [[fair value]] (MX$1278.53)

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: WRB * (MX$912.67) is trading below our estimate of fair value (MX$1278.53)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WRB *. This is calculated by dividing WRB *'s market cap by their current earnings.
What is WRB *'s PE Ratio?
PE Ratio	13.4x
Earnings	US$1.53b
Market Cap	US$20.50b

WRB * 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	1.8x
Enterprise Value/EBITDA	11.7x
PEG Ratio	3.6x

Price to Earnings Ratio vs Peers

How does WRB *'s PE Ratio compare to its peers?

The above table shows the PE ratio for WRB * 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	16.2x
Q * Quálitas Controladora. de	11.6x	13.1%	Mex$56.5b
ERIE Erie Indemnity	37.9x	23.8%	US$21.2b
MKL Markel Group	7.7x	-14.8%	US$22.0b
CINF Cincinnati Financial	7.7x	-39.3%	US$23.7b
WRB * W. R. Berkley	13.4x	3.8%	Mex$20.5b

Price-To-Earnings vs Peers: WRB * is good value based on its Price-To-Earnings Ratio (13.4x) compared to the peer average (18.1x).

Price to Earnings Ratio vs Industry

How does WRB *'s PE Ratio compare vs other companies in the South American Insurance Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: WRB * is expensive based on its Price-To-Earnings Ratio (13.4x) compared to the South American Insurance industry average (7.9x).

Price to Earnings Ratio vs Fair Ratio

What is WRB *'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.

WRB * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate WRB *'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.

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