* Note: Prices are in Million (M) USD.
Description:
Kinsale Capital Group, Inc., a specialty insurance company, offers property and casualty insurance products in the United States. The company is headquartered in Richmond, Virginia.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $138 M
Debt : $184 M
EBITDA : $811 M
Net Debt (Debt - Cash): $46 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Financial services
Industry: Insurance - property & casualty
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 21.77
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 12 overlapping fiscal years (max 20).Average Free Cash Flow: $303 M
Average Revenue: $482 M
Revenue Converted To Free Cash Flow (%): 62.8%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 25, 5 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $1,588 M
Revenue 4 Years Ago (2020-12-31): $460 M
Last 5 Years Average Revenue Growth: 49%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $23 M
Share Count 5 Years Ago (2020-12-31): $23 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $20.95
Trailing 12-Month Earnings Per Share (EPS): $18.15
Average Earnings Per Share (EPS): $19.55
Dividend Per Share (DPS): $1
Payout Ratio: 3%
Dividend Yield: 0%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 11 valid ROE years (max 20).Average ROE: 18.2%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $426
52-Week Low: $405
Threshold Price (15% Above 52-Week Low): $465
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $10,295 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 30 points to above Kinsale Capital Group Inc (KNSL) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
49.04 (>2× median)
• RCFC Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 8 Years Avg P/E (34.46)
× EPS ($19.55) = $673.69.
Last 8 Years Avg PE
34.46, Fair Value PE
15, Industry Based PE
15, Growth Based PE
49.04, RCFC Based PE
50, ROE Based PE
18.16, Risk-Free Anchored PE (25% MoS)
17.61. Based on these 7 values, average assigned is
28.47. Value-Trades has assined P/E value
28.47. An average (Current Year EPS + Next Year EPS) earning per share is
$19.55.
Note: Final fair value is the lesser of the blended PE-based fair value and the simple average PE × EPS fair value.Fair value using multiple P/Es (blended): $556.52 (PE 28.47 × EPS $19.55)
Fair value using simple average PE × EPS: $673.69 (PE 34.46 × EPS $19.55)
Lesser of these two: $556.52
So the Final Fair Value is: $556.52
