Radian Valuation
| RDN Stock | USD 34.58 0.59 1.74% |
At this time, the company appears to be fairly valued. Radian Group holds a recent Real Value of $35.16 per share. The prevailing price of the company is $34.58. Our model determines the value of Radian Group from analyzing the company fundamentals such as Shares Outstanding of 148.93 M, operating margin of 0.67 %, and Return On Equity of 0.14 as well as examining its technical indicators and probability of bankruptcy.
Fairly Valued
Today
Please note that Radian's price fluctuation is very steady at this time. Calculation of the real value of Radian Group is based on 3 months time horizon. Increasing Radian's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Radian is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Radian Stock. However, Radian'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 34.58 | Real 35.16 | Hype 34.92 | Naive 34.55 |
The intrinsic value of Radian'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 Radian'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 Radian Group helps investors to forecast how Radian 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 Radian more accurately as focusing exclusively on Radian's fundamentals will not take into account other important factors: Radian Total Value Analysis
Radian Group is at this time forecasted to have company total value of 6.89 B with market capitalization of 5.06 B, debt of 1.54 B, and cash on hands of 501.34 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Radian fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
6.89 B | 5.06 B | 1.54 B | 501.34 M |
Radian Investor Information
About 99.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.09. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Radian Group has Price/Earnings To Growth (PEG) ratio of 1.18. The entity last dividend was issued on the 25th of November 2024. The firm had 2:1 split on the 21st of June 2001. Based on the analysis of Radian's profitability, liquidity, and operating efficiency, Radian Group is not in a good financial situation at the present time. It has a very high chance of going through financial crunch in March.Radian Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Radian has an asset utilization ratio of 16.34 percent. This suggests that the Company is making $0.16 for each dollar of assets. An increasing asset utilization means that Radian Group is more efficient with each dollar of assets it utilizes for everyday operations.Radian Ownership Allocation
Radian owns a total of 148.93 Million outstanding shares. The majority of Radian Group outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Radian Group to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Radian. Please pay attention to any change in the institutional holdings of Radian 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 maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.Radian Profitability Analysis
The company reported the last year's revenue of 1.24 B. Total Income to common stockholders was 603.12 M with profit before taxes, overhead, and interest of 1.24 B.Radian Past Distributions to stockholders
About Radian Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Radian Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Radian Group based exclusively on its fundamental and basic technical indicators. By analyzing Radian's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Radian's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Radian. We calculate exposure to Radian's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Radian's related companies.Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States. The company was founded in 1977 and is headquartered in Wayne, Pennsylvania. Radian operates under InsuranceSpecialty classification in the United States and is traded on New York Stock Exchange. It employs 1800 people.
A single share of Radian represents a small ownership stake in the entity. As a stockholder of Radian, 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.
Radian Dividends Analysis For Valuation
There are various types of dividends Radian 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 Radian 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 Radian Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Radian pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Radian by the value of the dividends paid out.
Radian 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 Outstanding | 160.1 M | |
| Quarterly Earnings Growth Y O Y | 0.01 | |
| Forward Price Earnings | 9.1324 |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Radian 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 unemployment. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
Is Commercial & Residential Mortgage Finance 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 Radian. If investors know Radian 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 Radian listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Radian Group is measured differently than its book value, which is the value of Radian that is recorded on the company's balance sheet. Investors also form their own opinion of Radian's value that differs from its market value or its book value, called intrinsic value, which is Radian'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 Radian's market value can be influenced by many factors that don't directly affect Radian'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 Radian's value and its price as these two are different measures arrived at by different means. Investors typically determine if Radian is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Radian'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.