QualityDipStocks / Finance · Property-Casualty Insurers
W.R. Berkley WRB
Not in a dip by our rules: 5% below its 52-week high.
A quality company trading above our fair value estimate.
- Fair value est.
- $59.96−19%
- Market Value
- $73.43price +1%
- Off 52-wk high
- −5%
- Risk vs market
- Lowbeta −0.37
3 bullish · 5 bearish See why
Key levels
Every level vs today’s $73.86
- Fair value est.base case$59.96−18.8%
- 52-wk lowlowest close, 1 year$63.54−14.0%
- Market Valueavg paid since Oct 19$73.43−0.6%
- PriceFri Oct 30 close$73.86you are here
- 52-wk highhighest close, 1 year$78.10+5.7%
Fair value estimate
How the range is computed
Financials model (residual income). Same residual-income model as the base: cost of equity 9.5% ±1 point and return on equity 18.4% ±2 points. Bear = 10.5% and 16.4%; bull = 8.5% and 20.4%. A model estimate from public filings, not a forecast of where the price will go.
Price sits inside the range.
What the price implies To be worth today’s price, WRB would need a return on equity of about 21% a year; our estimate uses 18%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much WRB moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Has moved mostly independently of the market, but its own price swings are 1.7× the S&P 500’s (it moves on its own news).
- Beta vs S&P 500
- -0.37
- Volatility
- 22% vs 13% SPY
- Correlation SPY
- −0.21
- Correlation QQQ
- −0.37
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 3 of 5
ProfitabilityReturn on equity of 20% over the last 12 months.
Cash returnsShare count down 2.1% in a year: $635M of buybacks over 12 months.
QualityPasses all four of our quality checks: cash generation, returns on capital, growth and balance sheet.
Top bearish points 5 of 5
ValuationOur residual-income fair value estimate is $59.96, 19% below the price.
GrowthSales grew 4.3% over the last 12 months, below the 11% median for the 142 Finance companies we cover.
GrowthDiluted EPS grew 2.1% in the last fiscal year, below the 17% median for the 137 Finance companies we cover.
ValuationPrice / book of 2.8×, above the 1.8× median for the 143 Finance companies we cover.
ProfitabilityNet margin of 13%, below the 21% median for the 142 Finance companies we cover.
Who’s talking about it
Notable investors, executives, analysts and public figures on W.R. Berkley in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Property-Casualty Insurers
All fundamentals
P/E 14.2 · ROE 20% · Sales +4%
Valuation
- P/E
- 14.2×3-yr-end avg 14.4× · Finance median 13.5×
- Price / FCF
- n/acash flow isn't a clean measure for an insurer
- FCF yield
- n/acash flow isn't a clean measure for an insurer
- EV / EBITDA
- n/anot meaningful for an insurer
- Price / sales
- 1.84×
- Price / book
- 2.79×
- Market cap
- $27.4Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $14.9B
- Sales growth, 12 months
- +4.3%vs the 12 months before
- Sales growth, 3 yrs
- +9.6%/yrfrom FY2022
- Diluted EPS, 12 months
- $4.86
- EPS growth, last FY
- +2.1%
- Net income, 12 months
- $1.9B
- Net income growth
- +10%12 months vs before
Profitability
- Gross margin
- n/anot meaningful for an insurer
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- 12.9%
- FCF margin
- n/anot reported in its SEC filings
- Return on equity
- 20%
- Return on invested capital
- n/anot meaningful for an insurer
Balance sheet
- Cash & short-term inv.
- $2.6B
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/anot meaningful for an insurer
- Debt / equity
- n/adeposits/float make debt/equity not comparable for an insurer
- Interest coverage
- n/anot meaningful for an insurer
Cash flow & returns
- Free cash flow, 12 months
- n/anot reported in its SEC filings
- FCF growth, 12 months
- n/anot reported in its SEC filings
- Dividend yield
- 1.75%$480M paid
- Payout ratio
- 25%
- Buybacks, 12 months
- $635M2.3% of market cap
- Share count, 1 year
- −2.1%diluted shares vs a year ago
- Stock-based comp
- $56M
Trailing 12 months to Jun 30, 2026; balance sheet at Jun 30, 2026. From W.R. Berkley’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $59.96 · MV $73.43
Financials model (residual income): book value $28.21 a share on Jun 30, 2026, plus the earnings above a 9.5% cost of equity. ROE 18.4%, the average of 19.0% for the trailing 12 months to Jun 30, 2026 and 17.8% over fiscal 2021–2025, on average common equity; payout 55% of earnings (dividends 25% + net buybacks 30%), so book grows by the retained rest; the return above 9.5% fades halfway toward 9.5% over 10 years, then grows at 3% (terminal value). From the 10-Q filed Jul 31, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only arm once a company is in a dip.
Momentum & 52-week range
RSI 57 · 5 days +0.7%
The business
FCF $3.4B · Sales +3%
- Free cash flow, 12 months$3.4B
- Free-cash-flow yield12.7%
- Return on equity19%
- Sales growth (latest quarter vs year-ago quarter)+3%
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
Get a text when WRB fires a reversal signal
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