RLI Corp Valuation

RLI Stock  USD 61.96  0.96  1.57%   
At this time, the company appears to be overvalued. RLI Corp holds a recent Real Value of $55.85 per share. The prevailing price of the company is $61.96. Our model determines the value of RLI Corp from inspecting the company fundamentals such as return on equity of 0.24, and Operating Margin of 0.27 % as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting RLI Corp's valuation include:
Price Book
3.1519
Enterprise Value
5.7 B
Price Sales
3.0242
Forward PE
21.2766
Trailing PE
14.1785
Overvalued
Today
61.96
Please note that RLI Corp's price fluctuation is very steady at this time. Calculation of the real value of RLI Corp is based on 3 months time horizon. Increasing RLI Corp's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since RLI Corp is currently traded on the exchange, buyers and sellers on that exchange determine the market value of RLI Stock. However, RLI Corp'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  61.96 Real  55.85 Target  59.75 Hype  61.95 Naive  64.65
The intrinsic value of RLI Corp'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 RLI Corp's stock price.
55.85
Real Value
68.16
Upside
Estimating the potential upside or downside of RLI Corp helps investors to forecast how RLI 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 RLI Corp more accurately as focusing exclusively on RLI Corp's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
0.740.820.91
Details
Hype
Prediction
LowEstimatedHigh
60.5561.9563.35
Details
Potential
Annual Dividend
LowForecastedHigh
2.442.592.74
Details
8 Analysts
Consensus
LowTarget PriceHigh
54.3759.7566.32
Details
When choosing an evaluation method for RLI Corp, 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 all methods to arrive at a better estimate.

RLI Corp Cash

37.74 Million

RLI Revenue by Product

RLI Corp Total Value Analysis

RLI Corp is at this time expected to have company total value of 5.65 B with market capitalization of 5.69 B, debt of 100 M, and cash on hands of 51.56 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 RLI Corp fundamentals before making security assessment based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
5.65 B
5.69 B
100 M
51.56 M

RLI Corp Investor Information

About 85.0% of the company shares are owned by institutional investors. The book value of RLI Corp was at this time reported as 19.35. The company last dividend was issued on the 28th of November 2025. RLI Corp had 2:1 split on the 16th of January 2025. Based on the analysis of RLI Corp's profitability, liquidity, and operating efficiency, RLI Corp 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
Operating Profit Margin0.390.2753
Significantly Up
Pretty Stable
Total Cash From Operating Activities676.5 M644.3 M
Sufficiently Up
Slightly volatile
Operating Income544.2 M518.3 M
Sufficiently Up
Slightly volatile

RLI Corp Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. RLI Corp has an asset utilization ratio of 30.55 percent. This signifies that the Company is making $0.31 for each dollar of assets. An increasing asset utilization means that RLI Corp is more efficient with each dollar of assets it utilizes for everyday operations.
 
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RLI Corp Profitability Analysis

Considering RLI Corp's profitability and operating efficiency indicators, RLI Corp is yielding more profit at the present time then in previous quarter. It has a moderate chance of reporting better profitability numbers in March. Profitability indicators assess RLI Corp's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1985-09-30
Previous Quarter
124.6 M
Current Value
91.2 M
Quarterly Volatility
43.9 M
 
Black Monday
 
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Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
As of now, RLI Corp's Gross Profit is increasing as compared to previous years. The RLI Corp's current Operating Profit Margin is estimated to increase to 0.39, while Pretax Profit Margin is projected to decrease to 0.15.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.430.2982
Way Up
Slightly volatile
Net Profit Margin0.120.2143
Way Down
Slightly volatile
Operating Profit Margin0.390.2753
Significantly Up
Pretty Stable
Pretax Profit Margin0.150.2688
Way Down
Pretty Stable
Return On Assets0.06870.0655
Sufficiently Up
Slightly volatile
Return On Equity0.110.0655
Way Up
Pretty Stable
For RLI Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of RLI Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well RLI Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between RLI Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of RLI Corp over time as well as its relative position and ranking within its peers.

RLI Corp Earnings per Share Projection vs Actual

By analyzing RLI Corp's earnings estimates, investors can diagnose different trends across RLI Corp's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for RLI Corp is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
RLI Corp is projected to generate 0.825 in earnings per share on the 31st of March 2026. RLI Corp earnings estimates show analyst consensus about projected RLI Corp EPS (Earning Per Share). It derives the highest and the lowest estimates based on RLI Corp's historical volatility. Many public companies, such as RLI Corp, 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.

RLI Corp Ownership Allocation

RLI Corp owns a total of 91.88 Million outstanding shares. The majority of RLI Corp outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in RLI Corp to benefit from reduced commissions. Therefore, institutional investors are subject to a different set of regulations than regular investors in RLI Corp. Please pay attention to any change in the institutional holdings of RLI Corp 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.

RLI Corp Profitability Analysis

The company reported the last year's revenue of 1.88 B. Total Income to common stockholders was 345.78 M with profit before taxes, overhead, and interest of 648.11 M.

RLI Corp Past Distributions to stockholders

About RLI Corp Valuation

An absolute valuation paradigm, as applied to RLI Stock, attempts to find the value of RLI Corp based on its fundamental and basic technical indicators. By analyzing RLI Corp's financials, quarterly and monthly indicators, and their related drivers, such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of RLI Corp'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 RLI Corp. We calculate exposure to RLI Corp's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of RLI Corp's related companies.
Last ReportedProjected for Next Year
Gross Profit561.4 M589.5 M
Pretax Profit Margin 0.27  0.15 
Operating Profit Margin 0.28  0.39 
Net Profit Margin 0.21  0.12 
Gross Profit Margin 0.30  0.43 

RLI Corp Quarterly Retained Earnings

1.99 Billion

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

RLI Corp Dividends Analysis For Valuation

As of now, RLI Corp's Dividends Paid is increasing as compared to previous years. The RLI Corp's current Dividend Paid And Capex Coverage Ratio is estimated to increase to 5.27, while Dividend Yield is projected to decrease to 0.03. . As of now, RLI Corp's Retained Earnings are increasing as compared to previous years. The RLI Corp's current Earnings Yield is estimated to increase to 0.09, while Retained Earnings Total Equity is projected to decrease to under 1 B.
Last ReportedProjected for Next Year
Dividends Paid271 M284.6 M
Dividend Yield 0.04  0.03 
Dividend Payout Ratio 0.60  0.37 
Dividend Paid And Capex Coverage Ratio 2.68  5.27 
There are various types of dividends RLI Corp 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 RLI 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 RLI Corp directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When RLI pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of RLI Corp by the value of the dividends paid out.

RLI Corp 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 Outstanding92.2 M
Quarterly Earnings Growth Y O Y1.244
Forward Price Earnings21.2766

RLI Corp Current Valuation Indicators

Valuation refers to the process of determining the present value of RLI Corp and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value RLI we look at many different elements of the entity such as RLI'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 RLI Corp, 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 RLI Corp'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 RLI Corp's worth.

Complementary Tools for RLI Stock analysis

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