White Mountains Insurance Group, Ltd.

NYSE:WTM Stock Report

Market Cap: US$4.9b

White Mountains Insurance Group Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: WTM ($1971.32) is trading above our estimate of fair value ($121.2)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for WTM. This is calculated by dividing WTM's market cap by their current earnings.
What is WTM's PE Ratio?
PE Ratio7.8x
EarningsUS$638.60m
Market CapUS$4.93b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for WTM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14x
MCY Mercury General
7.6x-12.8%US$4.1b
SIGI Selective Insurance Group
25.8x41.5%US$5.8b
AGO Assured Guaranty
6.4x-37.5%US$4.6b
THG Hanover Insurance Group
16.1x18.3%US$5.8b
WTM White Mountains Insurance Group
7.8xn/aUS$4.9b

Price-To-Earnings vs Peers: WTM is good value based on its Price-To-Earnings Ratio (7.8x) compared to the peer average (14x).

Price to Earnings Ratio vs Industry

How does WTM'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
WTM 7.8xIndustry Avg. 13.5xNo. of Companies15PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: WTM is good value based on its Price-To-Earnings Ratio (7.8x) compared to the US Insurance industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is WTM'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.

WTM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.8x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate WTM's Price-To-Earnings Fair Ratio for valuation analysis.

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.

Discover undervalued companies

Fidelis Insurance Holdings

US$2.2b

A specialty insurer, provides insurance and reinsurance solutions in Bermuda, the Republic of Ireland, and the United Kingdom.

FIHL

US$19.90

7D

-0.2%

1Y

62.1%

Markel Group

US$21.5b

A diverse holding company, engages in marketing and underwriting specialty insurance products in the United States, Bermuda, the United Kingdom, and Germany.

MKL

US$1,694.12

7D

2.3%

1Y

18.5%

China Life Insurance

HK$1.1t

Operates as a life insurance company in the People’s Republic of China.

CILJ.F

HK$2.00

7D

-0.6%

1Y

46.0%