Is W. R. Berkley Corp (WRB) overvalued?
On Equity Rank's model estimate, WRB trades 35% above its fair value. W. R. Berkley Corp (WRB) last closed at $75.23; the multi-method model fair value is $55.71.
| Price | Model fair value | Price vs model |
|---|---|---|
| $75.23 | $55.71 | 35% above |
What the answer rests on
- 1 of 11 valuation methods put WRB's value above its price and 10 put it below, so the methods mostly agree.
- To justify today's price, WRB's free cash flow would need to grow about -12.1% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 11.3% a year.
- WRB trades at 16.2 times its last year's earnings, against a median of 13.0 for 75 profitable Insurance companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 8% above to 38% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind WRB's fair value · What prices assume · Other companies