Selective Insurance Group, Inc.

NasdaqGS:SIGI Stock Report

Mkt Cap: US$5.4b

We’ve recently updated our valuation analysis.

Selective Insurance Group Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SIGI 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/Revenue1.8x
Enterprise Value/EBITDA16.4x
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SIGI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.4x
RLI RLI
10.4x-51.2%US$6.0b
THG Hanover Insurance Group
15.8x21.5%US$4.6b
AXS AXIS Capital Holdings
13.8x32.4%US$4.8b
FAF First American Financial
13.4x25.6%US$6.3b
SIGI Selective Insurance Group
23.8x36.0%US$5.4b

Price-To-Earnings vs Peers: SIGI is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the peer average (13.4x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.1%
n/an/an/a

Price-To-Earnings vs Industry: SIGI is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the US Insurance industry average (14.6x)


Price to Earnings Ratio vs Fair Ratio

What is SIGI'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.

SIGI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.8x
Fair PE Ratio21.5x

Price-To-Earnings vs Fair Ratio: SIGI is expensive based on its Price-To-Earnings Ratio (23.8x) compared to the estimated Fair Price-To-Earnings Ratio (21.5x).


Share Price vs Fair Value

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

Below Fair Value: SIGI ($90.16) is trading above our estimate of fair value ($77.83)

Significantly Below Fair Value: SIGI is trading above our estimate of fair value.


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 SIGI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$90.16
US$93.33
+3.5%
3.3%US$97.00US$90.00n/a6
Jan ’24US$88.61
US$93.00
+5.0%
3.6%US$96.00US$88.00n/a5
Dec ’23US$94.42
US$95.00
+0.6%
5.7%US$105.00US$88.00n/a6
Nov ’23US$95.52
US$88.80
-7.0%
6.4%US$98.00US$80.00n/a5
Oct ’23US$81.40
US$87.20
+7.1%
7.4%US$98.00US$80.00n/a5
Sep ’23US$79.70
US$87.20
+9.4%
7.4%US$98.00US$80.00n/a5
Aug ’23US$77.06
US$89.40
+16.0%
5.4%US$98.00US$83.00n/a5
Jul ’23US$87.46
US$89.60
+2.4%
5.4%US$98.00US$83.00n/a5
Jun ’23US$77.94
US$87.20
+11.9%
2.8%US$90.00US$83.00n/a5
May ’23US$82.36
US$88.80
+7.8%
3.3%US$91.00US$83.00n/a5
Apr ’23US$91.69
US$85.80
-6.4%
2.9%US$90.00US$83.00n/a5
Mar ’23US$82.53
US$85.80
+4.0%
2.9%US$90.00US$83.00n/a5
Feb ’23US$79.73
US$85.80
+7.6%
3.1%US$90.00US$82.00n/a5
Jan ’23US$81.94
US$86.80
+5.9%
6.5%US$97.00US$80.00US$88.615
Dec ’22US$74.79
US$86.80
+16.1%
6.5%US$97.00US$80.00US$94.425
Nov ’22US$77.93
US$86.20
+10.6%
5.3%US$94.00US$80.00US$95.525
Oct ’22US$76.03
US$85.80
+12.9%
5.3%US$94.00US$80.00US$81.405
Sep ’22US$84.04
US$85.40
+1.6%
4.1%US$91.00US$80.00US$79.705
Aug ’22US$81.35
US$83.00
+2.0%
2.6%US$85.00US$80.00US$77.064
Jul ’22US$82.01
US$79.00
-3.7%
4.2%US$83.00US$73.00US$87.465
Jun ’22US$75.92
US$79.00
+4.1%
4.2%US$83.00US$73.00US$77.945
May ’22US$76.14
US$77.00
+1.1%
6.0%US$80.00US$69.00US$82.364
Apr ’22US$73.33
US$70.20
-4.3%
4.4%US$75.00US$67.00US$91.695
Mar ’22US$70.13
US$70.20
+0.1%
4.4%US$75.00US$67.00US$82.535
Feb ’22US$64.96
US$69.40
+6.8%
3.0%US$72.00US$67.00US$79.735
Jan ’22US$66.98
US$63.60
-5.0%
9.0%US$71.00US$57.00US$81.945

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


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