- 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).