W. R. Berkley Corporation

NYSE:WRB Stock Report

Market Cap: US$23.2b

W. R. Berkley Valuation

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

Below Fair Value: WRB ($62.14) is trading below our estimate of fair value ($126.25)

Significantly Below Fair Value: WRB is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WRB. This is calculated by dividing WRB's market cap by their current earnings.
What is WRB's PE Ratio?
PE Ratio15x
EarningsUS$1.58b
Market CapUS$23.22b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WRB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.6x
CINF Cincinnati Financial
7.9x-38.3%US$23.7b
ERIE Erie Indemnity
39.7x23.8%US$21.9b
MKL Markel Group
7.8x-15.5%US$21.8b
L Loews
11.1xn/aUS$18.4b
WRB W. R. Berkley
15x4.4%US$23.2b

Price-To-Earnings vs Peers: WRB is good value based on its Price-To-Earnings Ratio (15x) compared to the peer average (16.6x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UTGN UTG
2xn/aUS$89.45m
AORE.F American Overseas Group
2.1xn/aUS$16.68m
CUII China United Insurance Service
0.0003xn/aUS$3.13k
No more companies available in this PE range
WRB 15.0xIndustry Avg. 13.5xNo. of Companies15PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WRB is expensive based on its Price-To-Earnings Ratio (15x) compared to the US Insurance industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is WRB'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.

WRB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15x
Fair PE Ratio14.3x

Price-To-Earnings vs Fair Ratio: WRB is expensive based on its Price-To-Earnings Ratio (15x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).

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 WRB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$62.14
US$63.29
+1.8%
10.9%US$76.00US$49.00n/a14
Nov ’25US$57.50
US$62.57
+8.8%
10.4%US$76.00US$49.00n/a14
Oct ’25US$57.26
US$59.21
+3.4%
8.5%US$68.00US$49.00n/a14
Sep ’25US$59.70
US$59.46
-0.4%
8.7%US$68.00US$49.00n/a13
Aug ’25US$54.77
US$59.46
+8.6%
8.7%US$68.00US$49.00n/a13
Jul ’25US$52.68
US$59.28
+12.5%
9.1%US$68.67US$47.33n/a13
Jun ’25US$54.02
US$58.03
+7.4%
9.0%US$65.33US$47.33n/a13
May ’25US$51.85
US$58.13
+12.1%
9.0%US$65.33US$47.33n/a13
Apr ’25US$58.33
US$56.33
-3.4%
10.1%US$63.33US$43.33n/a13
Mar ’25US$55.13
US$56.33
+2.2%
10.1%US$63.33US$43.33n/a13
Feb ’25US$53.52
US$56.08
+4.8%
10.2%US$63.33US$43.33n/a13
Jan ’25US$47.15
US$49.92
+5.9%
9.0%US$56.67US$41.33n/a13
Dec ’24US$48.84
US$49.39
+1.1%
9.5%US$56.67US$41.33n/a12
Nov ’24US$45.29
US$49.06
+8.3%
9.1%US$56.67US$41.33US$57.5012
Oct ’24US$42.33
US$48.44
+14.5%
8.7%US$55.33US$41.33US$57.2612
Sep ’24US$41.62
US$48.44
+16.4%
8.7%US$55.33US$41.33US$59.7012
Aug ’24US$41.13
US$48.39
+17.7%
8.7%US$55.33US$41.33US$54.7712
Jul ’24US$39.71
US$49.67
+25.1%
8.5%US$56.00US$42.00US$52.6812
Jun ’24US$37.94
US$49.67
+30.9%
8.5%US$56.00US$42.00US$54.0212
May ’24US$39.82
US$50.22
+26.1%
8.2%US$56.00US$42.00US$51.8512
Apr ’24US$41.51
US$53.61
+29.2%
9.2%US$58.67US$40.00US$58.3312
Mar ’24US$44.83
US$54.11
+20.7%
9.1%US$58.67US$40.00US$55.1312
Feb ’24US$46.05
US$54.11
+17.5%
9.1%US$58.67US$40.00US$53.5212
Jan ’24US$48.38
US$52.85
+9.2%
9.1%US$58.67US$40.00US$47.1511
Dec ’23US$50.21
US$52.61
+4.8%
8.9%US$58.67US$40.00US$48.8412
Nov ’23US$50.19
US$51.83
+3.3%
9.4%US$56.67US$38.00US$45.2912

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

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