Is Arch Capital Group Ltd. overvalued or undervalued?
As of February 6, 2025, Arch Capital Group Ltd. is fairly valued with a P/E ratio of 14, a price-to-book value of 2.53, an EV to EBITDA ratio of 198.33, a dividend yield of 3.42%, and has underperformed the S&P 500 by -10.58% over the past year.
As of 6 February 2025, Arch Capital Group Ltd. has moved from an attractive to a fair valuation grade. The company is currently fairly valued. Key ratios include a P/E ratio of 14, a price-to-book value of 2.53, and an EV to EBITDA ratio of 198.33. In comparison to peers, Arch Capital's P/E ratio of 14 is lower than Progressive Corp.'s 24.36, indicating that Arch may be more attractively priced relative to its earnings. However, it is also higher than The Hartford Financial Services Group's P/E of 13.74, suggesting a competitive valuation landscape. Notably, Arch's dividend yield stands at 3.42%, which adds to its appeal in the current market. Over the past year, the stock has underperformed the S&P 500, returning -10.58% compared to the index's 10.26%, reinforcing the notion of its fair valuation amidst broader market trends.
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