We’ve recently updated our valuation analysis.

W. R. Berkley Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

WRB 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/Revenue1.9x
Enterprise Value/EBITDA12.2x
PEG Ratio2.9x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.1x
ACGL Arch Capital Group
19.8x31.8%US$23.8b
L Loews
14.5xn/aUS$14.4b
ERIE Erie Indemnity
45.2x18.9%US$13.0b
CNA CNA Financial
12.7x22.1%US$11.6b
WRB W. R. Berkley
14.7x5.0%US$19.0b

Price-To-Earnings vs Peers: WRB is good value based on its Price-To-Earnings Ratio (14.7x) compared to the peer average (23.1x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.2%
n/an/an/a

Price-To-Earnings vs Industry: WRB is good value based on its Price-To-Earnings Ratio (14.7x) compared to the US Insurance industry average (15.4x)


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 Ratio14.7x
Fair PE Ratio12.3x

Price-To-Earnings vs Fair Ratio: WRB is expensive based on its Price-To-Earnings Ratio (14.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.3x).


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 ($71.42) is trading below our estimate of fair value ($101.41)

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


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$71.42
US$80.33
+12.5%
8.9%US$88.00US$60.00n/a12
Jan ’24US$72.57
US$79.27
+9.2%
9.1%US$88.00US$60.00n/a11
Dec ’23US$75.31
US$78.92
+4.8%
8.9%US$88.00US$60.00n/a12
Nov ’23US$75.29
US$77.75
+3.3%
9.4%US$85.00US$57.00n/a12
Oct ’23US$64.58
US$75.50
+16.9%
10.9%US$83.00US$53.00n/a12
Sep ’23US$64.98
US$75.25
+15.8%
10.8%US$83.00US$53.00n/a12
Aug ’23US$61.42
US$74.75
+21.7%
10.8%US$83.00US$53.00n/a12
Jul ’23US$69.36
US$74.00
+6.7%
10.2%US$83.00US$53.00n/a13
Jun ’23US$70.67
US$73.62
+4.2%
10.4%US$83.00US$53.00n/a13
May ’23US$66.49
US$73.62
+10.7%
10.4%US$83.00US$53.00n/a13
Apr ’23US$67.31
US$65.41
-2.8%
10.4%US$75.00US$50.67n/a13
Mar ’23US$58.79
US$63.95
+8.8%
10.6%US$73.33US$46.67n/a13
Feb ’23US$57.19
US$62.62
+9.5%
10.6%US$73.33US$46.67n/a13
Jan ’23US$54.93
US$60.21
+9.6%
9.5%US$70.00US$46.67US$72.5713
Dec ’22US$50.47
US$58.85
+16.6%
8.6%US$66.00US$46.67US$75.3111
Nov ’22US$53.37
US$57.48
+7.7%
9.1%US$64.67US$46.67US$75.299
Oct ’22US$49.61
US$56.00
+12.9%
8.7%US$61.33US$45.33US$64.589
Sep ’22US$50.11
US$55.48
+10.7%
8.8%US$61.33US$45.33US$64.989
Aug ’22US$48.78
US$56.25
+15.3%
9.1%US$61.33US$45.33US$61.428
Jul ’22US$50.64
US$56.00
+10.6%
9.2%US$61.33US$45.33US$69.368
Jun ’22US$51.80
US$55.75
+7.6%
10.2%US$61.33US$43.33US$70.678
May ’22US$53.15
US$55.70
+4.8%
9.5%US$61.33US$43.33US$66.499
Apr ’22US$50.99
US$50.00
-1.9%
9.9%US$56.67US$42.67US$67.319
Mar ’22US$46.75
US$47.41
+1.4%
10.7%US$53.33US$36.00US$58.799
Feb ’22US$41.93
US$46.30
+10.4%
9.8%US$51.33US$36.00US$57.199
Jan ’22US$44.28
US$43.78
-1.1%
11.5%US$50.00US$35.33US$54.939

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


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