Arch Capital Valuation
| ACGL Stock | USD 98.54 2.83 2.96% |
At this time, the firm appears to be fairly valued. Arch Capital Group shows a prevailing Real Value of $95.72 per share. The current price of the firm is $98.54. 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 0.3 as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Arch Capital's valuation include:
Price Book 1.6793 | Enterprise Value 38.7 B | Price Sales 2.1349 | Forward PE 10.2881 | Trailing PE 6.4235 |
Fairly Valued
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 98.54 | Real 95.72 | Target 92.29 | Hype 98.47 | Naive 100.23 |
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.
Arch Capital Cash |
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Arch Valuation Trend
Knowing Arch Capital's actual value is paramount for traders when making sound investment determinations. Using both Arch Capital's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Arch Capital Total Value Analysis
Arch Capital Group is presently forecasted to have valuation of 38.72 B with market capitalization of 36.01 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 |
38.72 B | 36.01 B | 2.73 B | 2.78 B |
Arch Capital Investor Information
About 90.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.68. 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 14.9. The firm last dividend was issued on the 18th of November 2024. Arch Capital had 3:1 split on the 21st of June 2018. Based on the analysis of Arch Capital's profitability, liquidity, and operating efficiency, Arch Capital Group is performing exceptionally good at the present time. It has a great chance to report excellent financial results in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 1.04 | 0.993 |
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| Operating Income | 14.2 B | 13.5 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 23.15 percent. This suggests that the Company is making $0.23 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 Ownership Allocation
Arch Capital holds a total of 376.24 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 13.63 B. Net Income was 4.44 B with profit before overhead, payroll, taxes, and interest of 2.85 B.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 | 12 B | 12.6 B | |
| Pretax Profit Margin | 0.25 | 0.26 | |
| Operating Profit Margin | 0.99 | 1.04 | |
| Net Profit Margin | 0.33 | 0.34 | |
| Gross Profit Margin | 0.88 | 0.97 |
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 | 378.8 M | |
| Quarterly Earnings Growth Y O Y | 0.362 | |
| Forward Price Earnings | 10.2881 |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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. 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 0.362 | Earnings Share 14.9 | Revenue Per Share 45.387 | Quarterly Revenue Growth 0.418 | Return On Assets 0.0486 |
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.