Endurance Specialty Holdings Ltd. (NYSE:ENH)

CAPS Rating: 5 out of 5

The Company focuses on underwriting specialty lines of personal and commercial property and casualty insurance and reinsurance on a global basis.

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Player Avatar Zakrooster (< 20) Submitted: 11/16/2007 12:41:33 PM : Outperform Start Price: $32.71 ENH Score: +28.00

ENH part of the insurance sector which I believe on a whole is very undervalued. They have good return on their equity currently at 23%. Based on the average of analysts earnings estimates for this stock I valued their Discounted Cash Flow at $60 currently. The analysts forcasts for earnings have been increasing and it is trading at close to it's all time low P/E. ENH is more risky then most stocks due to it's exposure to catastrophe claims but has taken steps to reduce this isssue by diversifying it's lines of coverage. I bought this stock today and I think that due to technical factors it could drop slightly more. Since I will be holding this for the long term I didn't feel compelled to try and time the exact bottom of the price since it is already so undervalued.

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