- Wondering if Slide Insurance Holdings is priced fairly or offering value right now? This article walks through what the current numbers actually say.
- The share price last closed at US$18.00, with a 2.5% return over the past 7 days and a 7.6% decline over the past 30 days, leaving the year to date return at a 3.0% decline.
- Recent price moves are occurring as Slide Insurance Holdings continues to attract attention as a listed insurance name in the US market. Investors are weighing its growth potential against sector specific risks, as part of a broader reassessment of how insurers are positioned for policy growth, underwriting performance and capital strength.
- Right now, Slide Insurance Holdings has a value score of 6/6. The sections ahead will compare different valuation methods before finishing with a framework that can help you judge this score in a more complete way.
Approach 1: Slide Insurance Holdings Excess Returns Analysis
The Excess Returns model looks at how much profit a company can generate above the return that shareholders are assumed to require, then capitalizes those surplus earnings into an intrinsic value per share.
For Slide Insurance Holdings, the model starts with Book Value of $8.99 per share and a Stable Book Value estimate of $14.69 per share, based on weighted future Book Value estimates from 3 analysts. On this equity base, analysts expect Stable EPS of $4.28 per share, sourced from weighted future Return on Equity estimates from 4 analysts, implying an Average Return on Equity of 29.16%.
The assumed Cost of Equity is $1.03 per share, which leaves an Excess Return of $3.26 per share. These expected excess earnings are projected forward and discounted to arrive at an intrinsic value of about $106.04 per share under the Excess Returns framework.
Compared with the recent share price of US$18.00, this model outcome suggests the shares are 83.0% undervalued.
Result: UNDERVALUED (model-based)
Our Excess Returns analysis suggests Slide Insurance Holdings is undervalued by 83.0%. Track this in your watchlist or portfolio, or discover 59 more high quality undervalued stocks.
Approach 2: Slide Insurance Holdings Price vs Earnings
For a profitable company, the P/E ratio is a useful quick check because it links what you pay for each share to the earnings that the business is already generating. It helps you see how many dollars of price the market is currently attaching to each dollar of earnings.
What counts as a "normal" or "fair" P/E often depends on how quickly earnings are expected to grow and how risky those earnings are perceived to be. Higher growth or lower risk often line up with higher P/E ratios, while slower growth or higher risk usually match up with lower P/E ratios.
Slide Insurance Holdings currently trades on a P/E of 5.04x, compared with the Insurance industry average of 11.38x and a peer group average of 12.35x. Simply Wall St also calculates a proprietary Fair Ratio of 10.93x, which is the P/E level that might be expected given factors such as the company’s earnings profile, industry, profit margins, market cap and specific risks. This Fair Ratio can be more tailored than a simple comparison with peers or the industry because it incorporates these company specific inputs. Set against the current 5.04x P/E, the 10.93x Fair Ratio suggests that the shares may be undervalued on this metric.
Result: Potentially Undervalued
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Upgrade Your Decision Making: Choose your Slide Insurance Holdings Narrative
Earlier it was mentioned that there is an even better way to understand valuation, so Narratives on Simply Wall St let you attach a clear story about Slide Insurance Holdings, such as the analyst consensus view that ties its homeowners and coastal focus with growth assumptions like revenue reaching US$1.6b and earnings of US$407.5m by 2029 with a 10.5x P/E and a US$23.00 fair value, or a more cautious view that puts more weight on risks like catastrophe exposure, Florida concentration and reserve uncertainty, and therefore uses lower future earnings or a lower P/E. This then automatically keeps that story and fair value updated as fresh news or earnings come in so you can compare your fair value to the current price and decide whether the stock looks expensive or cheap relative to your own expectations.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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