Arch Capital Valuation
| ACGL Stock | USD 100.95 1.03 1.01% |
At this time, the firm appears to be undervalued. Arch Capital Group shows a prevailing Real Value of $112.09 per share. The current price of the firm is $100.95. Our model approximates the value of Arch Capital Group from analyzing the firm fundamentals such as return on equity of 0.18, and Profit Margin of 0.21 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Arch Capital's valuation include:
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.
The fair value of the Arch stock is determined by what a typical buyer is willing to pay for full or partial control of Arch Capital Group. 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 100.95 | Real 112.09 | Target 107.95 | Hype 101.28 | Naive 106.63 |
The intrinsic value of Arch Capital's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Arch Capital's stock price.
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.
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Arch Capital Total Value Analysis
Arch Capital Group is presently forecasted to have valuation of 39.12 B with market capitalization of 38.06 B, debt of 2.73 B, and cash on hands of 2.78 B. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Arch Capital fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
39.12 B | 38.06 B | 2.73 B | 2.78 B |
Arch Capital Investor Information
About 93.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.62. Some equities with similar Price to Book (P/B) outperform the market in the long run. Arch Capital Group has Price/Earnings To Growth (PEG) ratio of 2.24. The entity recorded earning per share (EPS) of 10.67. The firm last dividend was issued on the 18th of November 2024. Arch Capital had 3:1 split on the 21st of June 2018. Arch Capital Group may be sliding down financialy. It has an above-average chance of going through some form of financial crunch next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.14 | 0.24 |
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| Operating Income | 5.4 B | 5.1 B |
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Arch Capital Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Arch Capital has an asset utilization ratio of 23.88 percent. This suggests that the Company is making $0.24 for each dollar of assets. An increasing asset utilization means that Arch Capital Group is more efficient with each dollar of assets it utilizes for everyday operations.Arch Capital Profitability Analysis
Taking into consideration Arch Capital's profitability measurements, Arch Capital's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Arch Capital's ability to earn profits and add value for shareholders.Net Income | First Reported 1995-09-30 | Previous Quarter 1.2 B | Current Value 1.4 B | Quarterly Volatility 343.3 M |
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| Gross Profit Margin | 0.23 | 0.32 |
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| Net Profit Margin | 0.12 | 0.23 |
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| Operating Profit Margin | 0.14 | 0.24 |
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| Pretax Profit Margin | 0.13 | 0.25 |
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| Return On Assets | 0.0575 | 0.0547 |
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| Return On Equity | 0.2 | 0.19 |
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For Arch Capital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Arch Capital Group to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Arch Capital utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Arch Capital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Arch Capital over time as well as its relative position and ranking within its peers.
Arch Capital Earnings per Share Projection vs Actual
The next projected EPS of Arch Capital is estimated to be 2.341575 with future projections ranging from a low of 2.2125 to a high of 2.575. Arch Capital's most recent 12-month trailing earnings per share (EPS TTM) is at 10.67. Please be aware that the consensus of earnings estimates for Arch Capital Group is based on EPS before non-recurring items and includes expenses related to employee stock options.Arch Capital Earnings Estimation Breakdown
The calculation of Arch Capital's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Arch Capital is estimated to be 2.341575 with the future projection ranging from a low of 2.2125 to a high of 2.575. Please be aware that this consensus of annual earnings estimates for Arch Capital Group is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
2.21 Lowest | Expected EPS | 2.58 Highest |
Arch Capital Earnings Projection Consensus
Suppose the current estimates of Arch Capital's value are higher than the current market price of the Arch Capital stock. In this case, investors may conclude that Arch Capital is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Arch Capital's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of December 2026 | Current EPS (TTM) | |
| 20 | 75.42% | 0.0 | 2.341575 | 10.67 |
Arch Capital Ownership Allocation
Arch Capital holds a total of 362.63 Million outstanding shares. The majority of Arch Capital Group outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Arch Capital Group to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Arch Capital. Please pay attention to any change in the institutional holdings of Arch Capital Group as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Arch Capital Profitability Analysis
The company reported the previous year's revenue of 16.93 B. Net Income was 4.31 B with profit before overhead, payroll, taxes, and interest of 6.97 B.Arch Capital Past Distributions to stockholders
About Arch Capital Valuation
We use absolute and 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 their related drivers, we attempt to find the most accurate representation of Arch Capital's intrinsic value. 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, and relevant financial multiples and ratios and then compare them to those of Arch Capital's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 6.8 B | 7.2 B | |
| Pretax Profit Margin | 0.25 | 0.13 | |
| Operating Profit Margin | 0.24 | 0.14 | |
| Net Profit Margin | 0.23 | 0.12 | |
| Gross Profit Margin | 0.32 | 0.23 |
A single share of Arch Capital represents a small ownership stake in the entity. As a stockholder of Arch, 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.
Arch Capital Dividends Analysis For Valuation
Please note that Arch Capital has scaled down on payment of dividends at this time. At this time, Arch Capital's Retained Earnings are quite stable compared to the past year. Retained Earnings Total Equity is expected to rise to about 19.2 B this year, although the value of Earnings Yield will most likely fall to 0.07.
There are various types of dividends Arch Capital 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 Arch 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 Arch Capital Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Arch pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Arch Capital by the value of the dividends paid out.
Arch Capital Growth Indicators
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 | 381.8 M | |
| Quarterly Earnings Growth Y O Y | 0.391 | |
| Forward Price Earnings | 10.989 |
Arch Capital Current Valuation Indicators
Arch Capital's valuation analysis is 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 closely tied with the direction of predictive economic indicators such as signals in price. You can also try the Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Is Property & Casualty Insurance space 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. Comprehensive Arch Capital assessment requires weighing all these inputs, though not all factors influence outcomes equally.
Quarterly Earnings Growth 0.391 | Earnings Share 10.67 | Revenue Per Share | Quarterly Revenue Growth 0.082 | Return On Assets |
Investors evaluate Arch Capital Group using market value (trading price) and book value (balance sheet equity), each telling a different story. Calculating Arch Capital's intrinsic value - the estimated true worth - helps identify when the stock trades at a discount or premium to fair value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. External factors like market trends, sector rotation, and investor psychology can cause Arch Capital's market price to deviate significantly from intrinsic value.
Understanding that Arch Capital's value differs from its trading price is crucial, as each reflects different aspects of the company. Evaluating whether Arch Capital represents a sound investment requires analyzing earnings trends, revenue growth, technical signals, industry dynamics, and expert forecasts. Conversely, Arch Capital's market price signifies the transaction level at which participants voluntarily complete trades.