Essent Stock Valuation

ESNT
 Stock
  

USD 37.78  0.07  0.19%   

What would the acquisition value of Essent Group be today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Essent, is its stock price multiplied by the total number of shares outstanding, calculating Essent's enterprise value requires a different approach. It uses Essent's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to drop to about 571.4 M in 2022. Enterprise Value is likely to drop to about 4.9 B in 2022.
Essent Group shows a prevailing Real Value of $47.6 per share. The current price of the firm is $37.78. At this time, the firm appears to be undervalued. Our model computes the value of Essent Group from reviewing the firm fundamentals such as Shares Outstanding of 107.71 M, current valuation of 4.61 B, and Profit Margin of 0.84 % as well as analyzing its technical indicators and Probability Of Bankruptcy. In general, we advise acquiring undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
  
Essent Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Essent's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Essent Most Recent Valuation Data

Dividend Share
0.82
Beta
1.1803
Change Receivables
-3.3 M
Fiscal Year End
December
Property Plant And Equipment Net
11.9 M
Enterprise Value
4.6 B
Undervalued
Today 37.78
Please note that Essent's price fluctuation is very steady at this time. Calculation of the real value of Essent Group is based on 3 months time horizon. Increasing Essent's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Essent Group is useful when determining the fair value of the Essent stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Essent. Since Essent is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Essent Stock. However, Essent's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
47.60
Real Value
49.72
Upside
Estimating the potential upside or downside of Essent Group helps investors to forecast how Essent stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Essent more accurately as focusing exclusively on Essent's fundamentals will not take into account other important factors:
Earnings
Estimates (2)
LowProjected EPSHigh
5.875.895.92
Details
Hype
Prediction
LowEstimated ValueHigh
35.8237.9440.06
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
0.480.500.51
Details
5 Analysts
Consensus
LowTarget PriceHigh
51.0057.6072.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Essent's intrinsic value based on its ongoing forecasts of Essent's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Essent's closest peers. When choosing an evaluation method for Essent Group, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Essent Investments

5.54 Billion

Essent Valuation Drivers Correlation

Many accounts on the financial statements of Essent Group are highly interrelated and sometimes correlated. Consequently, when conducting Essent's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Essent
Click cells to compare fundamentals

Essent Valuation Trend

Knowing Essent's actual value is paramount for traders to make sound investment determinations. Essent's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Essent's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Essent's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Essent Market Cap

Essent Group is one of the top stocks in market capitalization category among related companies. Market capitalization of Financials industry is currently estimated at about 857.56 Billion. Essent adds roughly 4.06 Billion in market capitalization claiming only tiny portion of equities under Financials industry.
Capitalization  Total debt  Workforce  Revenue  Valuation

Essent Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Essent's current stock value. Our valuation model uses many indicators to compare Essent value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Essent competition to find correlations between indicators driving Essent's intrinsic value. More Info.
Essent Group is one of the top stocks in annual yield category among related companies. It is one of the top stocks in net asset category among related companies making up about  233,558,122,449  of Net Asset per Annual Yield. Average Assets is likely to drop to about 4.5 B in 2022. Tangible Asset Value is likely to drop to about 4.5 B in 2022. Comparative valuation analysis is a catch-all model that can be used if you cannot value Essent by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Essent's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Essent's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Essent's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Essent and how it compares across the competition.

About Essent Valuation

The stock valuation mechanism determines the current worth of Essent Group on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Essent Group. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Essent Group based exclusively on its fundamental and basic technical indicators. By analyzing Essent's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Essent's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Essent. We calculate exposure to Essent's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Essent's related companies.
Fiscal Year End
December
Industry
Insurance-Specialty
Concentration
Thrifts & Mortgage Finance
Full Time Employees
350
Service Category
Thrifts & Mortgage Finance
Last ReportedProjected for 2022
Gross Profit997.5 M1.1 B
Profit Margin 2.80  2.88 
Essent's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Essent's value is low or high relative to the company's performance and growth projections. Determining the market value of Essent can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Essent represents a small ownership stake in the entity. As a stockholder of Essent, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Essent Dividends Analysis For Valuation

Payment of Dividends and Other Cash Distributions is likely to drop to about (83.9 M) in 2022. Dividend Yield is likely to drop to 0.016 in 2022. Accumulated Retained Earnings Deficit is likely to gain to about 3 B in 2022. Earning Before Interest and Taxes EBIT is likely to gain to about 896.2 M in 2022
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-77.7 M-83.9 M
Dividend Yield 0.0172  0.016 
Dividends per Basic Common Share 0.70  0.69 
There are various types of dividends Essent can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Essent shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Essent Group directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Essent pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Essent by the value of the dividends paid out.

Essent Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Essent does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quarterly Earnings Growth Y O Y-0.098

Essent Current Valuation Indicators

Valuation refers to the process of determining the present value of Essent Group and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Essent we look at many different elements of the entity such as Essent's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Essent's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Essent's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Essent, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Essent's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Essent's worth.
Continue to Investing Opportunities. You can also try Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Complementary Tools for analysis

When running Essent Group price analysis, check to measure Essent's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Essent is operating at the current time. Most of Essent's value examination focuses on studying past and present price action to predict the probability of Essent's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Essent's price. Additionally, you may evaluate how the addition of Essent to your portfolios can decrease your overall portfolio volatility.
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Is Essent's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Essent. If investors know Essent will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Essent listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.1) 
Market Capitalization
4.1 B
Quarterly Revenue Growth YOY
(0.08) 
Return On Assets
0.1171
Return On Equity
0.2044
The market value of Essent Group is measured differently than its book value, which is the value of Essent that is recorded on the company's balance sheet. Investors also form their own opinion of Essent's value that differs from its market value or its book value, called intrinsic value, which is Essent's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Essent's market value can be influenced by many factors that don't directly affect Essent's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Essent's value and its price as these two are different measures arrived at by different means. Investors typically determine Essent value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Essent's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.