Arch Capital Group Ltd., together with its subsidiaries, provides insurance, reinsurance, and mortgage insurance products in the United States, Canada, Bermuda, the United Kingdom, Europe, and Australia. The company operates through three segments: Insurance, Reinsurance, and Mortgage.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS. Shaded region = analyst consensus for the current and next fiscal year (20 analysts).
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $264.65 Implied EV: $91.57B |
What growth rate is the market pricing in at $91?
The market implies -7.4% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding -9.7%, reflecting heavy growth investment expected to generate future returns.
Wide moat driven primarily by reinvestment efficiency. Margin Stability is the area most vulnerable to competitive pressure.
"Market is pricing this stock without strong emotion in either direction"
Appears undervalued with favorable or neutral sentiment — conditions suggest an attractive entry point
