Essent Group (ESNT): Assessing Valuation After Steady Multi-Year Shareholder Gains

Essent Group (ESNT) has been moving steadily in the market, with investors taking note of its longer-term performance. Over the past year, the stock has delivered a total return of nearly 12%, which has caught the attention of value-focused analysts.

See our latest analysis for Essent Group.

Essent Group’s share price has advanced over 12% year to date, building on consistent momentum that has helped it post an impressive 70% total shareholder return over the past three years. While recent weeks were quieter, this pattern suggests investors increasingly see long-term value as risk perception improves.

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With shares running ahead but analysts still targeting a higher price, the question emerges: is Essent Group undervalued with more upside left, or is the market already pricing in all the company’s future growth potential?

Most Popular Narrative: 9% Undervalued

With Essent Group's most followed narrative assigning a fair value of $67.50 per share, the stock's last close of $61.42 puts it at a noticeable discount. The gap signals potential opportunity if the foundational assumptions play out.

The company's expansion into adjacent credit risk management, through reinsurance (Essent Re) and advisory services, provides new and growing fee-based revenue streams. This supports long-term earnings growth and diversification beyond traditional mortgage insurance.

Read the complete narrative.

Want to know which future strategy makes analysts so confident? This valuation hinges on Essent’s push into risk management and some bold numbers behind projected earnings margins. What else do the experts see that justifies a higher fair value? Find out what could make or break expectations in the full narrative.

Result: Fair Value of $67.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain, including ongoing housing affordability challenges and potential regulatory changes that could slow growth or affect Essent Group’s core revenue streams.

Find out about the key risks to this Essent Group narrative.

Build Your Own Essent Group Narrative

If you have a different view or like to dive into the numbers on your own, you can build a custom narrative in just a few minutes. Do it your way

A great starting point for your Essent Group research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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