Validus Holdings, Ltd. (NYSE:VR)
CAPS Rating:
A Bermuda-based provider of reinsurance, conducting its operations worldwide through its wholly owned subsidiary Validus Re. The Company, through Validus Re, offers reinsurance coverage in the Property, Marine and Energy and Specialty lines markets.
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With a P/E ratio of 4.4, a price/book ratio of 0.86, a return on equity of 25% and a steady dividend of 3%, this looks like a undervalued stock. When looking at the trailing P/E of 4.6, the EPS of 6 and an est.5 year growth rate of 20.4%, this stock is worth 4,6 x 6 x 1,204^5 = 69,8 in 5 years from now. When your looking for an annual return of 20%, this is your stock (69 / 2,5 = 27,6). Buy somewhere around 27 to 28 dollars.