W.R. Berkley may be undervalued with mixed growth prospects, but the 16 analysts following the company give it an rating of hold. Their target prices range from $51.0 to $78.0 per share, for an average of $67.38. At today's price of $65.28, W.R. Berkley is trading -3.1% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.
W. R. Berkley Corporation, an insurance holding company, operates as a commercial line writer worldwide. Based in Greenwich, CT, the Large-Cap Finance company has 8,804 full time employees. W.R. Berkley has provided a 0.5% dividend yield over the last 12 months.
W.R. Berkley has a trailing twelve month P/E ratio of 13.8, compared to an average of 15.92 for the Finance sector. Considering its EPS guidance of $4.83, the company has a forward P/E ratio of 13.5.
W.R. Berkley is overpriced compared to its book value, since its P/B ratio of 2.5 is higher than the sector average of 1.78. The company's shares are currently 32.5% below their Graham number, indicating that its shares have a margin of safety.
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $8,099 | $9,455 | $11,166 | $12,143 | $13,639 | $14,708 |
| Interest Income (M) | $151 | $147 | $130 | $127 | $127 | $127 |
| Operating Margins | 9% | 14% | 15% | 14% | 17% | 16% |
| Net Margins | 7% | 11% | 12% | 11% | 13% | 12% |
| Net Income (M) | $531 | $1,022 | $1,381 | $1,381 | $1,756 | $1,779 |
| Depreciation & Amort. (M) | $53 | $52 | $52 | $51 | $55 | $54 |
| Diluted Shares (M) | 425 | 420 | 419 | 410 | 403 | 400 |
| Earnings Per Share | $1.25 | $2.44 | $3.29 | $3.37 | $4.36 | $4.45 |
| EPS Growth | n/a | 95.2% | 34.84% | 2.43% | 29.38% | 2.06% |
| Avg. Price | $39.28 | $48.19 | $62.79 | $70.72 | $58.31 | $67.47 |
| P/E Ratio | 30.45 | 18.82 | 18.1 | 20.21 | 12.79 | 14.39 |
| Free Cash Flow (M) | $1,617 | $2,184 | $2,569 | $2,929 | $3,678 | $3,583 |
| EV / EBITDA | 20.4 | 13.32 | 14.31 | 15.74 | 9.61 | 10.66 |
| Total Debt (M) | $1,623 | $115 | $1,829 | $1,828 | $1,831 | $1,829 |
| Net Debt / EBITDA | -0.99 | -1.09 | 0.21 | 0.26 | -0.06 | -0.3 |
