Fairfax Financial Holdings Limited

OTCPK:FXFL.F Stock Report

Market Cap: US$30.7b

Fairfax Financial Holdings Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: FXFL.F ($16.59) is trading below our estimate of fair value ($47.03)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FXFL.F?

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

The above table shows the Price to Earnings ratio for FXFL.F. This is calculated by dividing FXFL.F's market cap by their current earnings.
What is FXFL.F's PE Ratio?
PE Ratio7.7x
EarningsUS$4.00b
Market CapUS$30.67b

Price to Earnings Ratio vs Peers

How does FXFL.F's PE Ratio compare to its peers?

The above table shows the PE ratio for FXFL.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.5x
HIG Hartford Financial Services Group
11.5x7.7%US$34.3b
CINF Cincinnati Financial
7.9x-38.3%US$23.7b
WRB W. R. Berkley
15x4.4%US$23.2b
ERIE Erie Indemnity
39.7x23.8%US$21.9b
FXFL.F Fairfax Financial Holdings
7.7x-13.4%US$42.8b

Price-To-Earnings vs Peers: FXFL.F is good value based on its Price-To-Earnings Ratio (7.7x) compared to the peer average (18.3x).

Price to Earnings Ratio vs Industry

How does FXFL.F'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
FXFL.F 7.7xIndustry Avg. 13.5xNo. of Companies15PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FXFL.F is good value based on its Price-To-Earnings Ratio (7.7x) compared to the US Insurance industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is FXFL.F'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.

FXFL.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate FXFL.F'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.

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