Everest Group (EG): Evaluating Valuation as Leadership Shifts and Global Expansion Advance

Everest Group (NYSE:EG) has caught investors’ attention with a pair of headlining developments this month: the announced retirement of Executive Vice President and General Counsel Ricardo Anzaldua, and the establishment of a new reinsurance office in India’s GIFT City. Anzaldua’s exit ushers in a significant shift for the executive team, given his role in multiple recent corporate milestones. Meanwhile, the GIFT City move highlights Everest’s commitment to deepening its international footprint and pursuing growth outside of its core US business.

The stock’s performance over the past year tells a story of mixed momentum. Everest shares are down 10% over the past 12 months and are negative year-to-date, even as recent weeks delivered a slight rebound. Longer-term holders, however, have seen impressive returns over three and five years, bolstered by periods of steady net income growth and successful expansion initiatives. Investors have also watched the broader reinsurance sector surge on strong quarterly numbers. Everest has lagged behind key peers, adding another layer of complexity to the assessment.

With leadership in transition and a new international growth chapter opening, the big question is whether Everest Group is now undervalued or if these shifts are already reflected in the share price.

Most Popular Narrative: 9.6% Undervalued

According to the most widely followed narrative, Everest Group is considered moderately undervalued with analysts projecting long-term profit growth and margin expansion, despite near-term challenges.

Expansion into international and specialty insurance lines, including engineering, renewable energy, marine, and accident business, is leveraging global economic growth and increasing insurance penetration in emerging markets. This diversification is already delivering double-digit premium growth and is expected to provide sustained long-term revenue and earnings growth.

What is driving this bold price target? Analysts are guessing that future profitability might soar, even as revenues are set to shrink. There is one big assumption about how much earnings can increase and the premium the market will pay for it, compared to other insurers. Want a peek at the eye-opening projections and the surprising multiple analysts are using? The narrative’s full breakdown will leave you rethinking Everest’s upside.

Result: Fair Value of $386.33 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising catastrophe losses or prolonged high expense ratios could derail these upbeat forecasts. This would make profitability much harder to sustain than current projections suggest.

Find out about the key risks to this Everest Group narrative.

Another View: Challenging the Undervaluation Story

While the consensus says Everest Group is undervalued, another method tells a different story. Looking at its price compared to industry profits, Everest actually looks far more expensive than its sector peers. Could the market be factoring in more risk than these projections suggest?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Everest Group to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Everest Group Narrative

If you have a different perspective or want to dig into the numbers yourself, it takes less than three minutes to build your own interpretation. Do it your way.

A great starting point for your Everest Group research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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