RLI Corp.

NYSE:RLI Stock Report

Market Cap: US$7.1b

RLI Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Discounted Cash Flow
Simply Wall St
US$89.29
Fair Value
12.7% undervalued intrinsic discount
5
Number of Analysts

Below Fair Value: RLI ($77.97) is trading below our estimate of fair value ($89.29)

Significantly Below Fair Value: RLI is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for RLI. This is calculated by dividing RLI's market cap by their current earnings.
What is RLI's PE Ratio?
PE Ratio17x
EarningsUS$419.53m
Market CapUS$7.11b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RLI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.9x
SIGI Selective Insurance Group
25.4x41.7%US$5.7b
AXS AXIS Capital Holdings
12.1x12.5%US$7.5b
THG Hanover Insurance Group
15.5x18.3%US$5.6b
AIZ Assurant
14.5x14.3%US$10.9b
RLI RLI
17x-6.0%US$7.1b

Price-To-Earnings vs Peers: RLI is expensive based on its Price-To-Earnings Ratio (17x) compared to the peer average (16.9x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UTGN UTG
2.1xn/aUS$93.81m
AIFU AIX
1xn/aUS$22.14m
AORE.F American Overseas Group
2.3xn/aUS$15.74m
CUII China United Insurance Service
0.0003xn/aUS$3.13k
No more companies available in this PE range
RLI 17.0xIndustry Avg. 13.1xNo. of Companies17PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RLI is expensive based on its Price-To-Earnings Ratio (17x) compared to the US Insurance industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is RLI'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.

RLI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17x
Fair PE Ratio11.1x

Price-To-Earnings vs Fair Ratio: RLI is expensive based on its Price-To-Earnings Ratio (17x) compared to the estimated Fair Price-To-Earnings Ratio (11.1x).

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 RLI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$77.63
US$93.20
+20.1%
4.5%US$100.00US$87.50n/a5
Jan ’26US$82.42
US$93.30
+13.2%
4.7%US$100.50US$87.50n/a5
Dec ’25US$87.95
US$89.20
+1.4%
3.9%US$92.50US$82.50n/a5
Nov ’25US$78.61
US$89.20
+13.5%
3.9%US$92.50US$82.50n/a5
Oct ’25US$78.72
US$83.13
+5.6%
4.4%US$87.50US$77.50n/a4
Sep ’25US$77.05
US$83.13
+7.9%
4.4%US$87.50US$77.50n/a4
Aug ’25US$74.52
US$83.13
+11.6%
4.4%US$87.50US$77.50n/a4
Jul ’25US$70.27
US$82.88
+17.9%
4.3%US$87.50US$77.50n/a4
Jun ’25US$72.99
US$83.50
+14.4%
4.4%US$87.50US$77.50n/a4
May ’25US$71.63
US$83.50
+16.6%
4.4%US$87.50US$77.50n/a4
Apr ’25US$73.75
US$77.88
+5.6%
3.0%US$80.00US$74.00n/a4
Mar ’25US$73.11
US$77.88
+6.5%
3.0%US$80.00US$74.00n/a4
Feb ’25US$67.97
US$77.88
+14.6%
3.0%US$80.00US$74.00n/a4
Jan ’25US$66.56
US$76.88
+15.5%
2.8%US$80.00US$74.00US$82.424
Dec ’24US$67.28
US$76.88
+14.3%
2.8%US$80.00US$74.00US$87.954
Nov ’24US$67.61
US$76.88
+13.7%
2.8%US$80.00US$74.00US$78.614
Oct ’24US$67.95
US$77.75
+14.4%
2.3%US$80.50US$75.50US$78.724
Sep ’24US$66.65
US$77.83
+16.8%
2.6%US$80.50US$75.50US$77.053
Aug ’24US$67.21
US$80.33
+19.5%
4.8%US$85.00US$75.50US$74.523
Jul ’24US$68.24
US$79.67
+16.8%
3.8%US$82.50US$75.50US$70.273
Jun ’24US$61.91
US$77.17
+24.6%
8.4%US$82.50US$68.00US$72.993
May ’24US$70.36
US$77.17
+9.7%
8.4%US$82.50US$68.00US$71.633
Apr ’24US$66.46
US$73.50
+10.6%
5.5%US$77.50US$68.00US$73.753
Mar ’24US$68.63
US$73.50
+7.1%
5.5%US$77.50US$68.00US$73.113
Feb ’24US$65.89
US$73.50
+11.5%
5.5%US$77.50US$68.00US$67.973
Jan ’24US$65.64
US$69.67
+6.1%
8.4%US$75.00US$61.50US$66.563
Analyst Price Target
Consensus Narrative from 5 Analysts
US$93.20
Fair Value
16.3% undervalued intrinsic discount
5
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/21 00:22
End of Day Share Price 2025/01/21 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

RLI Corp. is covered by 19 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Cullen JohnsonB. Riley Securities, Inc.
Casey AlexanderCompass Point Research & Trading, LLC
Randolph BinnerFBR Capital Markets & Co.