Radian Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: RDN ($33.24) is trading below our estimate of fair value ($80.12)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

RDN 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/Revenue5.5x
Enterprise Value/EBITDA7.2x
PEG Ratio-2.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RDN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average8.7x
ACT Enact Holdings
7.4x-1.8%US$4.9b
MTG MGIC Investment
8.4x-3.6%US$6.0b
ESNT Essent Group
9.1x2.3%US$6.3b
COOP Mr. Cooper Group
10.1x13.3%US$5.0b
RDN Radian Group
8.7x-3.5%US$5.2b

Price-To-Earnings vs Peers: RDN is good value based on its Price-To-Earnings Ratio (8.7x) compared to the peer average (8.7x).


Price to Earnings Ratio vs Industry

How does RDN's PE Ratio compare vs other companies in the US Diversified Financial Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-7.8%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a-7.8%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RDN is good value based on its Price-To-Earnings Ratio (8.7x) compared to the US Diversified Financial industry average (15.9x).


Price to Earnings Ratio vs Fair Ratio

What is RDN'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.

RDN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.7x
Fair PE Ratio12.6x

Price-To-Earnings vs Fair Ratio: RDN is good value based on its Price-To-Earnings Ratio (8.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.6x).


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 RDN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$33.24
US$32.17
-3.2%
9.2%US$36.00US$28.00n/a6
Mar ’25US$28.82
US$32.17
+11.6%
9.2%US$36.00US$28.00n/a6
Feb ’25US$29.34
US$30.71
+4.7%
11.0%US$36.00US$26.00n/a7
Jan ’25US$28.55
US$29.43
+3.1%
9.1%US$35.00US$26.00n/a7
Dec ’24US$25.83
US$29.67
+14.9%
9.5%US$35.00US$26.00n/a6
Nov ’24US$25.54
US$29.80
+16.7%
9.8%US$35.00US$26.00n/a5
Oct ’24US$25.11
US$29.80
+18.7%
9.8%US$35.00US$26.00n/a5
Sep ’24US$27.23
US$29.17
+7.1%
10.4%US$35.00US$26.00n/a6
Aug ’24US$26.93
US$26.58
-1.3%
9.5%US$30.00US$23.00n/a6
Jul ’24US$25.28
US$26.58
+5.2%
9.5%US$30.00US$23.00n/a6
Jun ’24US$25.69
US$26.58
+3.5%
9.5%US$30.00US$23.00n/a6
May ’24US$23.97
US$26.00
+8.5%
10.2%US$30.00US$23.00n/a6
Apr ’24US$22.10
US$24.92
+12.7%
10.1%US$30.00US$22.50n/a6
Mar ’24US$21.34
US$24.36
+14.1%
11.1%US$30.00US$21.00US$28.827
Feb ’24US$22.41
US$24.19
+7.9%
11.0%US$30.00US$21.00US$29.348
Jan ’24US$19.07
US$24.63
+29.1%
9.6%US$30.00US$22.00US$28.558
Dec ’23US$19.20
US$24.63
+28.3%
9.6%US$30.00US$22.00US$25.838
Nov ’23US$20.84
US$25.69
+23.3%
8.2%US$30.00US$23.50US$25.548
Oct ’23US$19.29
US$27.75
+43.9%
11.6%US$35.00US$24.00US$25.118
Sep ’23US$20.54
US$27.75
+35.1%
11.6%US$35.00US$24.00US$27.238
Aug ’23US$22.35
US$27.31
+22.2%
14.5%US$35.00US$21.50US$26.938
Jul ’23US$20.07
US$27.56
+37.3%
14.3%US$35.00US$21.50US$25.288
Jun ’23US$21.12
US$27.56
+30.5%
14.3%US$35.00US$21.50US$25.698
May ’23US$21.39
US$27.94
+30.6%
12.3%US$35.00US$23.50US$23.978
Apr ’23US$22.06
US$28.61
+29.7%
11.1%US$35.00US$23.50US$22.109
Mar ’23US$23.36
US$28.61
+22.5%
11.1%US$35.00US$23.50US$21.349

Analyst Forecast: Target price is lower than the current share price.


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