Selective Insurance Valuation
| SIGI Stock | USD 103.70 1.29 1.26% |
At this time, the company appears to be fairly valued. Selective Insurance has a current Real Value of $103.05 per share. The regular price of the company is $103.7. Our model measures the value of Selective Insurance from inspecting the company fundamentals such as Operating Margin of 0.15 %, shares outstanding of 60.79 M, and Return On Equity of 0.13 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend purchasing undervalued stocks and trading away overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Selective Insurance's valuation include:
Price Book 2.2307 | Enterprise Value 6.7 B | Price Sales 1.4535 | Forward PE 13.2979 | Trailing PE 17.536 |
Fairly Valued
Today
Please note that Selective Insurance's price fluctuation is very steady at this time. Calculation of the real value of Selective Insurance is based on 3 months time horizon. Increasing Selective Insurance's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Selective Insurance Group is useful when determining the fair value of the Selective stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Selective Insurance. Since Selective Insurance is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Selective Stock. However, Selective Insurance's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 103.7 | Real 103.05 | Target 102.83 | Hype 103.71 |
The real value of Selective Stock, also known as its intrinsic value, is the underlying worth of Selective Insurance Company, which is reflected in its stock price. It is based on Selective Insurance's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Selective Insurance's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Selective Insurance's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Selective Insurance Group helps investors to forecast how Selective stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Selective Insurance more accurately as focusing exclusively on Selective Insurance's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Selective Insurance's intrinsic value based on its ongoing forecasts of Selective Insurance's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Selective Insurance's closest peers. When choosing an evaluation method for Selective Insurance, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Selective Insurance Investments |
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Selective Valuation Trend
Knowing Selective Insurance's actual value is paramount for traders to make sound investment determinations. Selective Insurance's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Selective Insurance's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Selective Insurance's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Selective Market Cap
Selective Insurance Group is currently regarded as top stock in market capitalization category among related companies. Market capitalization of Financials industry is at this time estimated at about 6.51 Billion. Selective Insurance totals roughly 6.23 Billion in market capitalization claiming about 96% of equities under Financials industry.Selective Insurance Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Selective Insurance's current stock value. Our valuation model uses many indicators to compare Selective Insurance value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Selective Insurance competition to find correlations between indicators driving Selective Insurance's intrinsic value. More Info.Selective Insurance Group is currently regarded as top stock in price to earning category among related companies. It is currently regarded as top stock in price to book category among related companies fabricating about 0.13 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Selective Insurance Group is roughly 7.62 . The Selective Insurance's current Price To Book Ratio is estimated to increase to 2.14. Comparative valuation analysis is a catch-all model that can be used if you cannot value Selective Insurance by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Selective Insurance's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Selective Insurance's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Selective Insurance's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Selective Insurance and how it compares across the competition.
About Selective Insurance Valuation
The stock valuation mechanism determines the current worth of Selective Insurance Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Selective Insurance Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Selective Insurance based exclusively on its fundamental and basic technical indicators. By analyzing Selective Insurance's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Selective Insurance's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Selective Insurance. We calculate exposure to Selective Insurance's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Selective Insurance's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.2 B | 4.4 B | |
| Pretax Profit Margin | 0.11 | 0.10 | |
| Operating Profit Margin | 0.01 | 0.01 | |
| Net Profit Margin | 0.09 | 0.08 | |
| Gross Profit Margin | 1.00 | 1.05 |
Selective Insurance Quarterly Retained Earnings |
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8 Steps to conduct Selective Insurance's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Selective Insurance's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Selective Insurance's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Selective Insurance's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Selective Insurance's revenue streams: Identify Selective Insurance's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Selective Insurance's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Selective Insurance's growth potential: Evaluate Selective Insurance's management, business model, and growth potential.
- Determine Selective Insurance's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Selective Insurance's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Selective Insurance represents a small ownership stake in the entity. As a stockholder of Selective, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Selective Insurance Dividends Analysis For Valuation
As of now, Selective Insurance's Dividends Paid is increasing as compared to previous years. The Selective Insurance's current Dividend Payout Ratio is estimated to increase to 0.40, while Dividend Yield is projected to decrease to 0.01. . As of now, Selective Insurance's Retained Earnings are increasing as compared to previous years. The Selective Insurance's current Earnings Yield is estimated to increase to 0.10, while Retained Earnings Total Equity is projected to decrease to under 1.8 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 83 M | 87.2 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.23 | 0.40 | |
| Dividend Paid And Capex Coverage Ratio | 12.57 | 16.72 |
There are various types of dividends Selective Insurance can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Selective shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Selective Insurance Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Selective pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Selective Insurance by the value of the dividends paid out.
Selective Insurance Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Selective Insurance does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 61 M | |
| Quarterly Earnings Growth Y O Y | 0.455 | |
| Forward Price Earnings | 13.2979 |
Selective Insurance Current Valuation Indicators
Valuation refers to the process of determining the present value of Selective Insurance Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Selective we look at many different elements of the entity such as Selective's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Selective Insurance's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Selective Insurance's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Selective Insurance, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Selective Insurance's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Selective Insurance's worth.When determining whether Selective Insurance offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Selective Insurance's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Selective Insurance Group Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Selective Insurance Group Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Selective Insurance Group. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in price. Note that the Selective Insurance information on this page should be used as a complementary analysis to other Selective Insurance's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Complementary Tools for Selective Stock analysis
When running Selective Insurance's price analysis, check to measure Selective Insurance's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Selective Insurance is operating at the current time. Most of Selective Insurance's value examination focuses on studying past and present price action to predict the probability of Selective Insurance's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Selective Insurance's price. Additionally, you may evaluate how the addition of Selective Insurance to your portfolios can decrease your overall portfolio volatility.
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Is Selective Insurance's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Selective Insurance. If investors know Selective will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Selective Insurance listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.455 | Dividend Share 1.25 | Earnings Share 5.84 | Revenue Per Share 69.801 | Quarterly Revenue Growth 0.166 |
The market value of Selective Insurance is measured differently than its book value, which is the value of Selective that is recorded on the company's balance sheet. Investors also form their own opinion of Selective Insurance's value that differs from its market value or its book value, called intrinsic value, which is Selective Insurance's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Selective Insurance's market value can be influenced by many factors that don't directly affect Selective Insurance's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Selective Insurance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Selective Insurance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Selective Insurance's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.