TWFG Valuation

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

TWFG ($27.63) is trading below our estimate of [[fair value]] ($1139.93)

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

Below Fair Value: TWFG ($27.63) is trading below our estimate of fair value ($1139.93)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for TWFG. This is calculated by dividing TWFG's market cap by their current preferred multiple.
What is TWFG's n/a Ratio?
n/a	0x
n/a	n/a
Market Cap	US$1.55b

TWFG 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	2.3x
Enterprise Value/EBITDA	11.9x
PEG Ratio	1.5x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TWFG 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	49.3x
GSHD Goosehead Insurance	116.3x	42.9%	US$3.3b
HGTY Hagerty	48.5x	4.1%	US$3.8b
CRD.B Crawford	22.1x	44.0%	US$510.8m
WDH Waterdrop	10.3x	19.2%	US$383.7m
TWFG TWFG	15.5x	10.3%	US$1.5b

Price-To-Earnings vs Peers: TWFG is good value based on its Price-To-Earnings Ratio (15.5x) compared to the peer average (49.3x).

Price to Earnings Ratio vs Industry

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

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	8.9%
	n/a	n/a	n/a

Fetching data

0 Companies	Price / Earnings	Estimated Growth	Market Cap
Industry Avg.	n/a	8.9%
	n/a	n/a	n/a

No more companies

Price-To-Earnings vs Industry: TWFG is expensive based on its Price-To-Earnings Ratio (15.5x) compared to the US Insurance industry average (14.2x).

Price to Earnings Ratio vs Fair Ratio

What is TWFG'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.

TWFG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.5x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate TWFG'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: Target price is less than 20% higher than the current share price.