WRB Valuation

W R Berkley Corp

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72.280

+0.3(0.417%)1D

Overview
Forecast
Valuation
Earnings

WRB Relative Valuation

WRB'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, WRB is overvalued; if below, it's undervalued.

Historical Valuation

W R Berkley Corp (WRB) is now in the Fair zone, suggesting that its current forward PE ratio of 15.91 is considered Fairly compared with the five-year average of 15.03. The fair price of W R Berkley Corp (WRB) is between 57.82 to 74.89 according to relative valuation methord.

Relative Value

Fair Zone

57.82-74.89

Current Price：72.28

Fair

15.91

Trailing

Forward

10.72

EV/EBITDA

W R Berkley Corp. (WRB) has a current EV/EBITDA of 10.72. The 5-year average EV/EBITDA is 3.29. The thresholds are as follows: Strongly Undervalued below -6.28, Undervalued between -6.28 and -1.49, Fairly Valued between 8.08 and -1.49, Overvalued between 8.08 and 12.86, and Strongly Overvalued above 12.86. The current Forward EV/EBITDA of 10.72 falls within the Overvalued range.

11.06

EV/EBIT

W R Berkley Corp. (WRB) has a current EV/EBIT of 11.06. The 5-year average EV/EBIT is 10.67. The thresholds are as follows: Strongly Undervalued below 7.25, Undervalued between 7.25 and 8.96, Fairly Valued between 12.38 and 8.96, Overvalued between 12.38 and 14.09, and Strongly Overvalued above 14.09. The current Forward EV/EBIT of 11.06 falls within the Historic Trend Line -Fairly Valued range.

2.10

W R Berkley Corp. (WRB) has a current PS of 2.10. The 5-year average PS is 1.71. The thresholds are as follows: Strongly Undervalued below 1.33, Undervalued between 1.33 and 1.52, Fairly Valued between 1.90 and 1.52, Overvalued between 1.90 and 2.09, and Strongly Overvalued above 2.09. The current Forward PS of 2.10 falls within the Strongly Overvalued range.

8.38

P/OCF

W R Berkley Corp. (WRB) has a current P/OCF of 8.38. The 5-year average P/OCF is 8.01. The thresholds are as follows: Strongly Undervalued below 4.84, Undervalued between 4.84 and 6.43, Fairly Valued between 9.60 and 6.43, Overvalued between 9.60 and 11.19, and Strongly Overvalued above 11.19. The current Forward P/OCF of 8.38 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

W R Berkley Corp. (WRB) has a current P/FCF of 0.00. The 5-year average P/FCF is 1.95. The thresholds are as follows: Strongly Undervalued below -5.04, Undervalued between -5.04 and -1.55, Fairly Valued between 5.44 and -1.55, Overvalued between 5.44 and 8.94, and Strongly Overvalued above 8.94. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

W R Berkley Corp (WRB) has a current Price-to-Book (P/B) ratio of 2.94. Compared to its 3-year average P/B ratio of 2.69 , the current P/B ratio is approximately 9.06% higher. Relative to its 5-year average P/B ratio of 2.49, the current P/B ratio is about 17.82% higher. W R Berkley Corp (WRB) has a Forward Free Cash Flow (FCF) yield of approximately 12.63%. Compared to its 3-year average FCF yield of 14.09%, the current FCF yield is approximately -10.35% lower. Relative to its 5-year average FCF yield of 13.63% , the current FCF yield is about -7.30% lower.

2.94

P/B

Median3y

2.69

Median5y

2.49

12.63

FCF Yield

Median3y

14.09

Median5y

13.63

Competitors Valuation Multiple

The average P/S ratio for WRB's competitors is 1.38, providing a benchmark for relative valuation. W R Berkley Corp Corp (WRB) exhibits a P/S ratio of 2.10, which is 52.32% above the industry average. Given its robust revenue growth of 6.71%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Brookfield Wealth Solutions Ltd

Cincinnati Financial Corp

Arch Capital Group Ltd

Performance Decomposition

Market capitalization of WRB increased by 28.84% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 13.50 to 16.35.

The secondary factor is the Revenue Growth, contributed 6.71%to the performance.

Overall, the performance of WRB in the past 1 year is driven by P/E Change. Which is more unsustainable.

6.71%

3.38B → 3.61B

Revenue Growth

1.00%

11.00 → 11.11

Margin Expansion

21.13%

13.50 → 16.35

P/E Change

28.84%