* Note: Prices are in Million (M) USD.
Description:
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $540 M
Debt : $3,231 M
EBITDA : $705 M
Net Debt (Debt - Cash): $2,691 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Finance and Insurance
Industry: Insurance Agencies and Brokerages
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 26.12
Since Forward PE Ratio is between 25 - 35, 1 point assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $294 M
Average Revenue: $1,589 M
Revenue Converted To Free Cash FLow(%): 18%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 33.43%
Since Free Cash Flow (FCF) to Revenue percentage is greater than 15, 3 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $2,516 M
Revenue 4 Years Ago (2020-12-31): $1,018 M
Last 5 Years Average Revenue Growth: 29%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $276 M
Share Count 5 Years Ago (2020-12-31): $106 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.45
Trailing 12-Month Earnings Per Share (EPS): $1.98
Average Earnings Per Share (EPS): $2.22
Dividend Per Share (DPS): $0
Payout Ratio: 20%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 35%
Since Average ROE is greater than 20, 5 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $58
52-Week Low: $56
Threshold Price (15% Above 52-Week Low): $65
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $17,059 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 26 points to above Ryan Specialty Group Holdings Inc (RYAN) stock.
Last 4 Years Avg PE (Limited to last 4 years of EPS data) 40, Fair Value PE 15, Industry Based PE is 10 and Growth based PE is 15. Based on these all values average assigned is 20.00.
Value-Trades has assined P/E value 20.00. Since an average (Current Year EPS + Next Year EPS) earning per share is $2.215.
The fair value of Ryan Specialty Group Holdings Inc (RYAN) stock should be (20.00 x $2.215) = $44.3
