Using the industry peer median P/E multiple (trailing + forward), Everest Re Group, Ltd. (EG) has a fair value of $581.30 based on 10 comparable companies in the Insurance - Reinsurance industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Everest Re Group, Ltd.EG | 13,405 | 8.5x | 9.9x |
| Berkshire Hathaway Inc.BRK-B | 1,028,234 | 15.4x | 24.0x |
| JPMorgan Chase & Co.JPM | 788,612 | 14.6x | 15.7x |
| Visa Inc.V | 587,792 | 29.9x | 23.7x |
| Mastercard IncorporatedMA | 447,308 | 30.3x | 25.6x |
| Bank of America CorporationBAC | 353,404 | 12.7x | 12.7x |
| Morgan StanleyMS | 260,679 | 16.1x | 16.6x |
| The Goldman Sachs Group, Inc.GS | 247,147 | 16.1x | 16.9x |
| Wells Fargo & CompanyWFC | 244,167 | 12.5x | 14.8x |
| American Express CompanyAXP | 205,612 | 19.4x | 17.0x |
| Citigroup Inc.C | 196,938 | 16.1x | 10.9x |
| Industry Median | 16.1x | 16.7x | |
| (*) Profit after tax | 1,591 | 1,348 | |
| Equity Value | 25,577 | 22,568 | |
| (/) Outstanding shares | 41 | 41 | |
| Fair Price | $618 | $545 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.