Universal Insurance Holdings Valuation

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

UVE ($22.59) is trading above our estimate of [[fair value]] ($10.68)

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

Below Fair Value: UVE ($22.59) is trading above our estimate of fair value ($10.68)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for UVE. This is calculated by dividing UVE's market cap by their current earnings.
What is UVE's PE Ratio?
PE Ratio	8.8x
Earnings	US$72.90m
Market Cap	US$630.22m

UVE 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	0.3x
Enterprise Value/EBITDA	3.4x
PEG Ratio	0.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for UVE 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	19x
UFCS United Fire Group	15x	n/a	US$698.2m
DGIC.A Donegal Group	21.7x	23.9%	US$528.3m
TIPT Tiptree	19.6x	n/a	US$795.2m
PRA ProAssurance	19.7x	3.7%	US$830.8m
UVE Universal Insurance Holdings	8.8x	11.1%	US$630.2m

Price-To-Earnings vs Peers: UVE is good value based on its Price-To-Earnings Ratio (8.8x) compared to the peer average (19x).

Price to Earnings Ratio vs Industry

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

3 Companies	Price / Earnings	Estimated Growth	Market Cap
UTGN UTG	2x	n/a	US$89.45m
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: UVE is good value based on its Price-To-Earnings Ratio (8.8x) compared to the US Insurance industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is UVE'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.

UVE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	8.8x
Fair PE Ratio	11.8x

Price-To-Earnings vs Fair Ratio: UVE is good value based on its Price-To-Earnings Ratio (8.8x) compared to the estimated Fair Price-To-Earnings Ratio (11.8x).

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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