MGIC Investment (NYSE: MTG) stock value analysis

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Updated: 10 June 2019
  • MGIC Investment has a P/E ratio of 7.82 and a P/CF ratio of 9.26;
  • While the P/E comparison shows undervalued trading, P/CF ratio shows that the stock is slightly overvalued;
  • The stock’s bullish momentum is not stopping due to investors expecting outperformance from the company in the short-term.

MGIC Investment‘s (NYSE: MTG) has its twelve-month P/E ratio currently at 7.82. This figure can be compared extremely favourably to the S&P 500’s ratio of 17.77 and to the finance sector’s ratio of 14.25. This positive comparison shows undervalued trading, at least compared to its peers.

The company also has a P/CF ratio of 9.26, this value can be compared to the Zacks Insurance industry’s average of 3.79 (the lower, the better); this indicates that the MTG stock is somewhat overvalued in this respect.

The MTG stock is in a decent spot, with analysts rating it with a Growth grade of C and a Momentum score of F, as well as with a Zacks Rank #1 (Strong Buy).