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.

Below Fair Value: RLI ($148.48) is trading above our estimate of fair value ($134.53)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

RLI 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/Revenue4.5x
Enterprise Value/EBITDA17.9x
PEG Ratio-15.2x

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 Average47x
SIGI Selective Insurance Group
18.3x20.2%US$6.5b
AXS AXIS Capital Holdings
15.9x27.1%US$5.5b
WTM White Mountains Insurance Group
9.1xn/aUS$4.6b
THG Hanover Insurance Group
144.9x75.0%US$4.9b
RLI RLI
22.3x-1.5%US$6.8b

Price-To-Earnings vs Peers: RLI is good value based on its Price-To-Earnings Ratio (22.3x) compared to the peer average (47x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RLI is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the US Insurance industry average (14.8x).


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 Ratio22.3x
Fair PE Ratio12.8x

Price-To-Earnings vs Fair Ratio: RLI is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the estimated Fair Price-To-Earnings Ratio (12.8x).


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$148.48
US$155.75
+4.9%
3.0%US$160.00US$148.00n/a4
Mar ’25US$146.22
US$155.75
+6.5%
3.0%US$160.00US$148.00n/a4
Feb ’25US$135.94
US$155.75
+14.6%
3.0%US$160.00US$148.00n/a4
Jan ’25US$133.12
US$153.75
+15.5%
2.8%US$160.00US$148.00n/a4
Dec ’24US$134.55
US$153.75
+14.3%
2.8%US$160.00US$148.00n/a4
Nov ’24US$135.22
US$153.75
+13.7%
2.8%US$160.00US$148.00n/a4
Oct ’24US$135.89
US$155.50
+14.4%
2.3%US$161.00US$151.00n/a4
Sep ’24US$133.30
US$155.67
+16.8%
2.6%US$161.00US$151.00n/a3
Aug ’24US$134.41
US$160.67
+19.5%
4.8%US$170.00US$151.00n/a3
Jul ’24US$136.47
US$159.33
+16.8%
3.8%US$165.00US$151.00n/a3
Jun ’24US$123.82
US$154.33
+24.6%
8.4%US$165.00US$136.00n/a3
May ’24US$140.72
US$154.33
+9.7%
8.4%US$165.00US$136.00n/a3
Apr ’24US$132.91
US$147.00
+10.6%
5.5%US$155.00US$136.00n/a3
Mar ’24US$137.26
US$147.00
+7.1%
5.5%US$155.00US$136.00US$146.223
Feb ’24US$131.78
US$147.00
+11.5%
5.5%US$155.00US$136.00US$135.943
Jan ’24US$131.27
US$139.33
+6.1%
8.4%US$150.00US$123.00US$133.123
Dec ’23US$129.78
US$139.33
+7.4%
8.4%US$150.00US$123.00US$134.553
Nov ’23US$132.98
US$135.00
+1.5%
8.3%US$150.00US$123.00US$135.223
Oct ’23US$102.38
US$135.00
+31.9%
8.3%US$150.00US$123.00US$135.893
Sep ’23US$110.56
US$136.00
+23.0%
9.2%US$153.00US$123.00US$133.303
Aug ’23US$110.56
US$136.00
+23.0%
9.2%US$153.00US$123.00US$134.413
Jul ’23US$117.48
US$139.33
+18.6%
13.2%US$165.00US$123.00US$136.473
Jun ’23US$119.25
US$139.33
+16.8%
13.2%US$165.00US$123.00US$123.823
May ’23US$114.78
US$139.33
+21.4%
13.2%US$165.00US$123.00US$140.723
Apr ’23US$113.42
US$126.25
+11.3%
7.9%US$140.00US$112.00US$132.914
Mar ’23US$98.93
US$120.25
+21.6%
5.0%US$127.00US$112.00US$137.264

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


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