Arch Capital Valuation
| ACGL Stock | USD 95.80 2.26 2.42% |
At this time, the firm appears to be undervalued. Arch Capital Group shows a prevailing Real Value of $100.75 per share. The current price of the firm is $95.8. Our model approximates the value of Arch Capital Group from analyzing the firm fundamentals such as profit margin of 0.34 %, and Return On Equity of 0.29 as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will blend. Key fundamental drivers impacting Arch Capital's valuation include:
Price Book 1.9266 | Enterprise Value 35.4 B | Price Sales 2.4758 | Forward PE 10.9051 | Trailing PE 7.3828 |
Undervalued
Today
Please note that Arch Capital's price fluctuation is very steady at this time. Calculation of the real value of Arch Capital Group is based on 3 months time horizon. Increasing Arch Capital's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Arch Capital Group is useful when determining the fair value of the Arch stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Arch Capital. Since Arch Capital is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Arch Stock. However, Arch Capital'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 95.8 | Real 100.75 | Target 92.29 | Hype 95.82 |
The real value of Arch Stock, also known as its intrinsic value, is the underlying worth of Arch Capital Group Company, which is reflected in its stock price. It is based on Arch Capital's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Arch Capital'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 Arch Capital'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 Arch Capital Group helps investors to forecast how Arch 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 Arch Capital more accurately as focusing exclusively on Arch Capital'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 Arch Capital's intrinsic value based on its ongoing forecasts of Arch Capital's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Arch Capital's closest peers. When choosing an evaluation method for Arch Capital Group, 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.
Arch Capital Investments |
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Arch Valuation Trend
Knowing Arch Capital's actual value is paramount for traders to make sound investment determinations. Arch Capital's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Arch Capital's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Arch Capital'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.
Arch Market Cap
Arch Capital Group is number one stock in market capitalization category among related companies. Market capitalization of Financials industry is presently estimated at about 145.27 Billion. Arch Capital totals roughly 35.11 Billion in market capitalization claiming about 24% of equities under Financials industry.Arch Capital Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Arch Capital's current stock value. Our valuation model uses many indicators to compare Arch Capital value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Arch Capital competition to find correlations between indicators driving Arch Capital's intrinsic value. More Info.Arch Capital Group is number one stock in price to earning category among related companies. It is number one stock in price to book category among related companies fabricating about 0.10 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Arch Capital Group is roughly 9.94 . The value of Price To Book Ratio is estimated to slide to 0.86. Comparative valuation analysis is a catch-all model that can be used if you cannot value Arch Capital by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Arch Capital'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 Arch Capital'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 Arch Capital'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 Arch Capital and how it compares across the competition.
About Arch Capital Valuation
The stock valuation mechanism determines the current worth of Arch Capital Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Arch Capital Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Arch Capital Group based exclusively on its fundamental and basic technical indicators. By analyzing Arch Capital'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 Arch Capital'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 Arch Capital. We calculate exposure to Arch Capital's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Arch Capital's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 12 B | 12.6 B | |
| Pretax Profit Margin | 0.23 | 0.12 | |
| Operating Profit Margin | 0.01 | 0.01 | |
| Net Profit Margin | 0.33 | 0.35 | |
| Gross Profit Margin | 0.90 | 0.97 |
8 Steps to conduct Arch Capital's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Arch Capital'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 Arch Capital's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Arch Capital's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Arch Capital's revenue streams: Identify Arch Capital's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Arch Capital's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Arch Capital's growth potential: Evaluate Arch Capital's management, business model, and growth potential.
- Determine Arch Capital'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 Arch Capital's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Arch Capital 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 Arch Capital 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 | 378.8 M | |
| Quarterly Earnings Growth Y O Y | 0.562 | |
| Forward Price Earnings | 10.9051 |
Arch Capital Current Valuation Indicators
Valuation refers to the process of determining the present value of Arch Capital Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Arch we look at many different elements of the entity such as Arch's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Arch Capital'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 Arch Capital'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 Arch Capital, 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 Arch Capital'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 Arch Capital's worth.When determining whether Arch Capital Group is a strong investment it is important to analyze Arch Capital's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Arch Capital's future performance. For an informed investment choice regarding Arch Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Arch Capital 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 Arch Capital Group information on this page should be used as a complementary analysis to other Arch Capital'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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Complementary Tools for Arch Stock analysis
When running Arch Capital's price analysis, check to measure Arch Capital'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 Arch Capital is operating at the current time. Most of Arch Capital's value examination focuses on studying past and present price action to predict the probability of Arch Capital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Arch Capital's price. Additionally, you may evaluate how the addition of Arch Capital to your portfolios can decrease your overall portfolio volatility.
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Is Arch Capital'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 Arch Capital. If investors know Arch 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 Arch Capital 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 0.562 | Earnings Share 12.67 | Revenue Per Share 38.98 | Quarterly Revenue Growth 0.244 | Return On Assets 0.0436 |
The market value of Arch Capital Group is measured differently than its book value, which is the value of Arch that is recorded on the company's balance sheet. Investors also form their own opinion of Arch Capital's value that differs from its market value or its book value, called intrinsic value, which is Arch Capital'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 Arch Capital's market value can be influenced by many factors that don't directly affect Arch Capital'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 Arch Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Arch Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arch Capital'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.