Universal Insurance Valuation
| UVE Stock | USD 19.83 0.21 1.07% |
At this time, the company appears to be fairly valued. Universal Insurance has a current Real Value of $20.45 per share. The regular price of the company is $19.83. Our model measures the value of Universal Insurance from inspecting the company fundamentals such as Return On Equity of 0.21, shares outstanding of 28.97 M, and Operating Margin of 0.07 % as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend purchasing undervalued stocks and exiting overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Universal Insurance's valuation include:
Price Book 1.5998 | Enterprise Value 287.6 M | Price Sales 0.3924 | Trailing PE 8.8378 | Enterprise Value Revenue 0.1906 |
Fairly Valued
Today
Please note that Universal Insurance's price fluctuation is not too volatile at this time. Calculation of the real value of Universal Insurance is based on 3 months time horizon. Increasing Universal Insurance's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Universal Insurance Holdings is useful when determining the fair value of the Universal stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Universal Insurance. Since Universal Insurance is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Universal Stock. However, Universal Insurance'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 19.83 | Real 20.45 | Target 21.0 | Hype 19.97 |
The real value of Universal Stock, also known as its intrinsic value, is the underlying worth of Universal Insurance Company, which is reflected in its stock price. It is based on Universal Insurance's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Universal Insurance's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Universal Insurance's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Universal Insurance Holdings helps investors to forecast how Universal 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 Universal Insurance more accurately as focusing exclusively on Universal Insurance's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Universal Insurance's intrinsic value based on its ongoing forecasts of Universal Insurance's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Universal Insurance's closest peers. When choosing an evaluation method for Universal Insurance, 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 both methods to arrive at a better estimate.
Universal Insurance Investments |
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Universal Valuation Trend
Knowing Universal Insurance's actual value is paramount for traders to make sound investment determinations. Universal Insurance's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Universal Insurance's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Universal Insurance's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Universal Market Cap
Universal Insurance Holdings is rated first in market capitalization category among related companies. Market capitalization of Financials industry is at this time estimated at about 852.43 Million. Universal Insurance totals roughly 568.31 Million in market capitalization claiming about 67% of equities under Financials industry.Universal Insurance Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Universal Insurance's current stock value. Our valuation model uses many indicators to compare Universal Insurance value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Universal Insurance competition to find correlations between indicators driving Universal Insurance's intrinsic value. More Info.Universal Insurance Holdings is rated first in price to earning category among related companies. It is rated first in price to book category among related companies fabricating about 0.12 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Universal Insurance Holdings is roughly 8.39 . The current year's Price To Book Ratio is expected to grow to 1.47. Comparative valuation analysis is a catch-all model that can be used if you cannot value Universal Insurance by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Universal Insurance's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Universal Insurance's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Universal Insurance's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Universal Insurance and how it compares across the competition.
About Universal Insurance Valuation
The stock valuation mechanism determines the current worth of Universal Insurance Holdings on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Universal Insurance Holdings. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Universal Insurance based exclusively on its fundamental and basic technical indicators. By analyzing Universal Insurance's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Universal Insurance'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 Universal Insurance. We calculate exposure to Universal Insurance's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Universal Insurance's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 1.4 B | 1.5 B | |
| Pretax Profit Margin | 0.06 | 0.07 | |
| Operating Profit Margin | (0) | 0.00 | |
| Net Profit Margin | 0.05 | 0.05 | |
| Gross Profit Margin | 0.83 | 0.73 |
8 Steps to conduct Universal Insurance's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Universal Insurance's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Universal Insurance's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Universal Insurance's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Universal Insurance's revenue streams: Identify Universal Insurance's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Universal Insurance's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Universal Insurance's growth potential: Evaluate Universal Insurance's management, business model, and growth potential.
- Determine Universal Insurance's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Universal Insurance's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Universal Insurance represents a small ownership stake in the entity. As a stockholder of Universal, 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.
Universal Insurance Dividends Analysis For Valuation
As of April 23, 2024, Dividends Paid is expected to decline to about 15.4 M. In addition to that, Dividend Yield is expected to decline to 0.04. At present, Universal Insurance's Earnings Yield is projected to slightly decrease based on the last few years of reporting. The current year's Price Earnings Ratio is expected to grow to 7.49, whereas Retained Earnings Total Equity is forecasted to decline to about 404.6 M.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 23.3 M | 15.4 M | |
| Dividend Yield | 0.05 | 0.04 | |
| Dividend Payout Ratio | 0.35 | 0.23 | |
| Dividend Paid And Capex Coverage Ratio | 3.68 | 3.50 |
There are various types of dividends Universal Insurance 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 Universal 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 Universal Insurance Holdings directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Universal pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Universal Insurance by the value of the dividends paid out.
Universal Insurance 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. Note, investing in growth stocks can be very risky. If the company such as Universal Insurance does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 30.1 M | |
| Quarterly Earnings Growth Y O Y | -0.172 |
Universal Insurance Current Valuation Indicators
Valuation refers to the process of determining the present value of Universal Insurance Holdings and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Universal we look at many different elements of the entity such as Universal's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Universal Insurance's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Universal Insurance's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Universal Insurance, 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 Universal Insurance'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 Universal Insurance's worth.When determining whether Universal Insurance is a strong investment it is important to analyze Universal Insurance's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Universal Insurance's future performance. For an informed investment choice regarding Universal Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Universal Insurance Holdings. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in real. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Complementary Tools for Universal Stock analysis
When running Universal Insurance's price analysis, check to measure Universal Insurance'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 Universal Insurance is operating at the current time. Most of Universal Insurance's value examination focuses on studying past and present price action to predict the probability of Universal Insurance's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Universal Insurance's price. Additionally, you may evaluate how the addition of Universal Insurance to your portfolios can decrease your overall portfolio volatility.
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Is Universal Insurance's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Universal Insurance. If investors know Universal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Universal Insurance listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.17) | Dividend Share 0.64 | Earnings Share 2.22 | Revenue Per Share 46.652 | Quarterly Revenue Growth 0.137 |
The market value of Universal Insurance is measured differently than its book value, which is the value of Universal that is recorded on the company's balance sheet. Investors also form their own opinion of Universal Insurance's value that differs from its market value or its book value, called intrinsic value, which is Universal Insurance's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Universal Insurance's market value can be influenced by many factors that don't directly affect Universal Insurance's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Universal Insurance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Universal Insurance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Universal Insurance's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.