United Fire Group Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

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

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for UFCS. This is calculated by dividing UFCS's market cap by their current earnings.
What is UFCS's PE Ratio?
PE Ratio	12.9x
Earnings	US$50.12m
Market Cap	US$644.20m

UFCS 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	7.2x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for UFCS 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	17.7x
UVE Universal Insurance Holdings	8.7x	11.1%	US$635.6m
DGIC.A Donegal Group	21.5x	17.3%	US$525.8m
PRA ProAssurance	20.1x	3.0%	US$863.5m
TIPT Tiptree	20.4x	n/a	US$824.5m
UFCS United Fire Group	12.9x	n/a	US$644.2m

Price-To-Earnings vs Peers: UFCS is good value based on its Price-To-Earnings Ratio (12.9x) compared to the peer average (17.7x).

Price to Earnings Ratio vs Industry

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

3 Companies	Price / Earnings	Estimated Growth	Market Cap
UTGN UTG	1.9x	n/a	US$85.49m
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: UFCS is good value based on its Price-To-Earnings Ratio (12.9x) compared to the US Insurance industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is UFCS'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.

UFCS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.9x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate UFCS'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: Insufficient data to show price forecast.

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