Donegal Group Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: Insufficient data to calculate DGIC.B's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate DGIC.B's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DGIC.B?

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

The above table shows the Price to Earnings ratio for DGIC.B. This is calculated by dividing DGIC.B's market cap by their current earnings.
What is DGIC.B's PE Ratio?
PE Ratio	21.8x
Earnings	US$24.89m
Market Cap	US$531.44m

DGIC.B 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	0.5x
Enterprise Value/EBITDA	15.4x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does DGIC.B's PE Ratio compare to its peers?

The above table shows the PE ratio for DGIC.B 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	11.9x
UFCS United Fire Group	15.1x	n/a	US$753.9m
UVE Universal Insurance Holdings	8.9x	11.1%	US$639.0m
HRTG Heritage Insurance Holdings	5x	13.5%	US$358.4m
ITIC Investors Title	18.7x	n/a	US$530.6m
DGIC.B Donegal Group	21.8x	23.9%	US$531.4m

Price-To-Earnings vs Peers: DGIC.B is expensive based on its Price-To-Earnings Ratio (21.8x) compared to the peer average (11.9x).

Price to Earnings Ratio vs Industry

How does DGIC.B's PE Ratio compare vs other companies in the US Insurance Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap
UTGN UTG	2x	n/a	US$89.08m
AORE.F American Overseas Group	2.1x	n/a	US$16.68m
CUII China United Insurance Service	0.0003x	n/a	US$3.13k

No more companies available in this PE range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: DGIC.B is expensive based on its Price-To-Earnings Ratio (21.8x) compared to the US Insurance industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is DGIC.B'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.

DGIC.B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	21.8x
Fair PE Ratio	10.4x

Price-To-Earnings vs Fair Ratio: DGIC.B is expensive based on its Price-To-Earnings Ratio (21.8x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).

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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