Using the industry peer median P/E multiple (trailing + forward), W. R. Berkley Corporation (WRB) has a fair value of $53.73 based on 6 comparable companies in the Insurance - Property & Casualty industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| W. R. Berkley CorporationWRB | 25,980 | 14.6x | 16.1x |
| Chubb LimitedCB | 126,579 | 12.6x | 14.7x |
| The Progressive CorporationPGR | 119,537 | 10.6x | 15.1x |
| The Travelers Companies, Inc.TRV | 64,900 | 10.6x | 15.3x |
| The Allstate CorporationALL | 53,737 | 5.4x | 12.3x |
| Cincinnati Financial CorporationCINF | 24,460 | 10.4x | 11.4x |
| Loews CorporationL | 22,121 | 13.4x | 30.2x |
| Industry Median | 10.6x | 14.9x | |
| (*) Profit after tax | 1,779 | 1,609 | |
| Equity Value | 18,876 | 24,018 | |
| (/) Outstanding shares | 399 | 399 | |
| Fair Price | $47 | $60 | |
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.