RDN Relative Valuation
RDN's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, RDN is overvalued; if below, it's undervalued.
Historical Valuation
Radian Group Inc (RDN) is now in the Fair zone, suggesting that its current forward PE ratio of 8.34 is considered Fairly compared with the five-year average of 7.60. The fair price of Radian Group Inc (RDN) is between 29.07 to 36.47 according to relative valuation methord.
Relative Value
Fair Zone
29.07-36.47
Current Price：33.47
Fair
8.34
PE
1Y
3Y
5Y
Trailing
Forward
0.00
EV/EBITDA
Radian Group Inc. (RDN) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward EV/EBITDA of 0.00 falls within the Strongly Undervalued range.
0.00
EV/EBIT
Radian Group Inc. (RDN) has a current EV/EBIT of 0.00. The 5-year average EV/EBIT is 7.41. The thresholds are as follows: Strongly Undervalued below 3.06, Undervalued between 3.06 and 5.24, Fairly Valued between 9.59 and 5.24, Overvalued between 9.59 and 11.77, and Strongly Overvalued above 11.77. The current Forward EV/EBIT of 0.00 falls within the Strongly Undervalued range.
3.54
PS
Radian Group Inc. (RDN) has a current PS of 3.54. The 5-year average PS is 3.18. The thresholds are as follows: Strongly Undervalued below 2.28, Undervalued between 2.28 and 2.73, Fairly Valued between 3.63 and 2.73, Overvalued between 3.63 and 4.08, and Strongly Overvalued above 4.08. The current Forward PS of 3.54 falls within the Historic Trend Line -Fairly Valued range.
0.00
P/OCF
Radian Group Inc. (RDN) has a current P/OCF of 0.00. The 5-year average P/OCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/OCF of 0.00 falls within the Strongly Undervalued range.
0.00
P/FCF
Radian Group Inc. (RDN) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.
Radian Group Inc (RDN) has a current Price-to-Book (P/B) ratio of 1.00. Compared to its 3-year average P/B ratio of 1.00 , the current P/B ratio is approximately 0.63% higher. Relative to its 5-year average P/B ratio of 0.97, the current P/B ratio is about 3.45% higher. Radian Group Inc (RDN) has a Forward Free Cash Flow (FCF) yield of approximately -25.94%. Compared to its 3-year average FCF yield of 4.66%, the current FCF yield is approximately -656.84% lower. Relative to its 5-year average FCF yield of 8.99% , the current FCF yield is about -388.68% lower.
1.00
P/B
Median3y
1.00
Median5y
0.97
-25.94
FCF Yield
Median3y
4.66
Median5y
8.99
Competitors Valuation Multiple
The average P/S ratio for RDN's competitors is 2.44, providing a benchmark for relative valuation. Radian Group Inc Corp (RDN) exhibits a P/S ratio of 3.54, which is 45.14% above the industry average. Given its robust revenue growth of -0.98%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of RDN decreased by 6.61% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 8.39 to 8.40.
The secondary factor is the Revenue Growth, contributed -0.98%to the performance.
Overall, the performance of RDN in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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