Donegal Group Valuation

DGICA Stock  USD 18.94  0.24  1.28%   
At this time, the firm appears to be undervalued. Donegal Group A shows a prevailing Real Value of $20.08 per share. The current price of the firm is $18.94. Our model computes the value of Donegal Group A from reviewing the firm fundamentals such as Shares Outstanding of 31.06 M, profit margin of 0.09 %, and Current Valuation of 666.96 M as well as analyzing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Donegal Group's valuation include:
Price Book
1.092
Enterprise Value
667 M
Price Sales
0.6936
Forward PE
16
Trailing PE
7.6639
Undervalued
Today
18.94
Please note that Donegal Group's price fluctuation is very steady at this time. Calculation of the real value of Donegal Group A is based on 3 months time horizon. Increasing Donegal Group's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Donegal Group is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Donegal Stock. However, Donegal Group'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  18.94 Real  20.08 Target  21.0 Hype  18.95
The real value of Donegal Stock, also known as its intrinsic value, is the underlying worth of Donegal Group A Company, which is reflected in its stock price. It is based on Donegal Group's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Donegal Group'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, or news.
20.08
Real Value
21.38
Upside
Estimating the potential upside or downside of Donegal Group A helps investors to forecast how Donegal 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 Donegal Group more accurately as focusing exclusively on Donegal Group's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.530.530.53
Details
Hype
Prediction
LowEstimatedHigh
17.6518.9520.25
Details
2 Analysts
Consensus
LowTarget PriceHigh
19.1121.0023.31
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Donegal Group's intrinsic value based on its ongoing forecasts of Donegal Group's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Donegal Group's closest peers. If more than one evaluation category is relevant for Donegal Group we suggest using both methods to arrive at a better estimate.

Donegal Group Cash

63.91 Million

Donegal Group Total Value Analysis

Donegal Group A is currently forecasted to have takeover price of 666.96 M with market capitalization of 685.2 M, debt of 35 M, and cash on hands of 63.32 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Donegal Group fundamentals before making investing decisions based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
666.96 M
685.2 M
35 M
63.32 M

Donegal Group Investor Information

About 89.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.09. Some equities with similar Price to Book (P/B) outperform the market in the long run. Donegal Group A last dividend was issued on the 3rd of February 2026. The entity had 4:3 split on the 27th of April 2006. Based on the analysis of Donegal Group's profitability, liquidity, and operating efficiency, Donegal Group A is doing better financially today then in previous quarter. It has a moderate chance of reporting better financial numbers in March.
Current ValueLast YearChange From Last Year 10 Year Trend
Total Cash From Operating Activities40.2 M77.6 M
Way Down
Slightly volatile

Donegal Group Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Donegal Group has an asset utilization ratio of 42.36 percent. This suggests that the Company is making $0.42 for each dollar of assets. An increasing asset utilization means that Donegal Group A is more efficient with each dollar of assets it utilizes for everyday operations.
 
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Donegal Group Profitability Analysis

Considering Donegal Group's profitability and operating efficiency indicators, Donegal Group's profitability may be sliding down. It has an above-average chance of reporting lower numbers next quarter. Profitability indicators assess Donegal Group's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1986-09-30
Previous Quarter
16.9 M
Current Value
20.1 M
Quarterly Volatility
6.5 M
 
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At present, Donegal Group's Gross Profit is projected to increase significantly based on the last few years of reporting. The current year's Net Profit Margin is expected to grow to 0.06, whereas Pretax Profit Margin is forecasted to decline to 0.07.
For Donegal Group profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Donegal Group A to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Donegal Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Donegal Group's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Donegal Group over time as well as its relative position and ranking within its peers.

Donegal Group Earnings per Share Projection vs Actual

The next projected EPS of Donegal Group is estimated to be 0.525 with future projections ranging from a low of 0.525 to a high of 0.525. Donegal Group's most recent 12-month trailing earnings per share (EPS TTM) is at 2.44. Please be aware that the consensus of earnings estimates for Donegal Group A is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
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Donegal Group is projected to generate 0.525 in earnings per share on the 31st of December 2026. Donegal Group earnings estimates show analyst consensus about projected Donegal Group EPS (Earning Per Share). It derives the highest and the lowest estimates based on Donegal Group's historical volatility. Many public companies, such as Donegal Group, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Donegal Group Earnings Estimation Breakdown

The calculation of Donegal Group'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 Donegal Group is estimated to be 0.525 with the future projection ranging from a low of 0.525 to a high of 0.525. Please be aware that this consensus of annual earnings estimates for Donegal Group A is based on EPS before non-recurring items and includes expenses related to employee stock options.
Last Reported EPS
0.0
0.53
Lowest
Expected EPS
0.525
0.53
Highest

Donegal Group Earnings Projection Consensus

Suppose the current estimates of Donegal Group's value are higher than the current market price of the Donegal Group stock. In this case, investors may conclude that Donegal Group 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 Donegal Group's stock will quickly adjusts to the new information provided by the consensus estimate.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 31st of December 2026Current EPS (TTM)
129.41%
0.0
0.525
2.44

Donegal Group Ownership Allocation

Donegal Group holds a total of 31.06 Million outstanding shares. The majority of Donegal Group A outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to obtain positions in Donegal Group A to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Donegal Group. Please pay attention to any change in the institutional holdings of Donegal Group A 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.

Donegal Group Profitability Analysis

The company reported the revenue of 989.61 M. Net Income was 50.86 M with profit before overhead, payroll, taxes, and interest of 108.1 M.

Donegal Group Past Distributions to stockholders

Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Donegal Group'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 Donegal Group and how it compares across the competition.

About Donegal Group Valuation

The stock valuation mechanism determines Donegal Group's current worth on a weekly basis. Our valuation model uses a comparative analysis of Donegal Group. We calculate exposure to Donegal Group's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Donegal Group's related companies.
Last ReportedProjected for Next Year
Gross Profit1.1 B1.2 B
Pretax Profit Margin 0.07  0.07 
Operating Profit Margin 0.07  0.07 
Net Profit Margin 0.06  0.06 

Donegal Group Quarterly Retained Earnings

293.8 Million

Donegal Group's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Donegal Group's value is low or high relative to the company's performance and growth projections. Determining the market value of Donegal Group can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Donegal Group represents a small ownership stake in the entity. As a stockholder of Donegal, 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.

Donegal Group Dividends Analysis For Valuation

At present, Donegal Group's Dividends Paid is projected to increase significantly based on the last few years of reporting. The current year's Dividend Payout Ratio is expected to grow to 0.75, whereas Dividend Yield is forecasted to decline to 0.02. . The current year's Price Earnings To Growth Ratio is expected to grow to 0.01, whereas Retained Earnings are forecasted to decline to about 142 M.
Last ReportedProjected for Next Year
Dividends Paid26.1 M27.4 M
Dividend Yield 0.04  0.02 
Dividend Payout Ratio 0.40  0.75 
Dividend Paid And Capex Coverage Ratio 3.42  5.69 
There are various types of dividends Donegal Group 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 Donegal 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 Donegal Group A directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Donegal pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Donegal Group by the value of the dividends paid out.

Donegal Group 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.
Common Stock Shares Outstanding33.1 M
Quarterly Earnings Growth Y O Y0.089
Forward Price Earnings16

Donegal Group Current Valuation Indicators

Valuation refers to the process of determining the present value of Donegal Group A and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Donegal we look at many different elements of the entity such as Donegal's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Donegal Group, 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 Donegal Group'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 Donegal Group's worth.

Complementary Tools for Donegal Stock analysis

When running Donegal Group's price analysis, check to measure Donegal Group'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 Donegal Group is operating at the current time. Most of Donegal Group's value examination focuses on studying past and present price action to predict the probability of Donegal Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Donegal Group's price. Additionally, you may evaluate how the addition of Donegal Group to your portfolios can decrease your overall portfolio volatility.
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