Validus Holdings, Ltd. (NYSE:VR)

CAPS Rating: 4 out of 5

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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Member Avatar WhateverTrader (98.95) Submitted: 1/3/2013 8:57:37 AM : Outperform Start Price: $30.57 VR Score: -6.51

http://www.gurufocus.com/news/156889/steven-cohen-buys-52-stake-in-validus-john-paulson-reduces-american-capital

VR has a Median Target Price $40 (+16.11%), High Target $44 (+27.72%), Low Target $37 (+7.4%) according to 11 analysts that cover the stock.

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Member Avatar marshgerda (51.78) Submitted: 7/19/2011 9:58:54 AM : Outperform Start Price: $23.73 VR Score: +17.48

Dropped too much

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Member Avatar hesselvdhoeven (< 20) Submitted: 10/29/2010 12:43:49 PM : Outperform Start Price: $23.23 VR Score: +3.37

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.

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Member Avatar ddaemili (< 20) Submitted: 4/23/2010 1:14:08 AM : Outperform Start Price: $21.35 VR Score: +22.77

good eps

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Member Avatar ayaghsizian (95.90) Submitted: 4/8/2010 2:21:43 AM : Outperform Start Price: $22.14 VR Score: +11.47

Ultracontrarian's pick... although I originally found out about this low priced stock because of their huge margins. My picks with low PEG ratios and high dividend yields usually outperform the market over a year. I wish I had something more brilliant to say but it's really that simple.

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Member Avatar Clint35 (60.51) Submitted: 3/15/2010 11:37:19 PM : Outperform Start Price: $21.17 VR Score: +16.78

Great value

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Member Avatar JROLDSCHOOLFOOL (< 20) Submitted: 3/1/2010 9:20:26 AM : Outperform Start Price: $22.58 VR Score: -2.93

OLD SCHOOL FOOL THINKS THAT THIS MAY BE A FIRST MOVER IN SIMPLYFING MEDICAL RECORDS WITH OBAMA MAKING MEDICAL COSTS AND CARE A PRIORITY IN HIS ADMINISTRATION I AM NEW TO THIS INVESTING BUT I GO WITH WHAT MY GUT
AND THE INFO AVAILABLE

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Member Avatar greenwave3 (< 20) Submitted: 1/5/2010 12:53:15 AM : Outperform Start Price: $21.72 VR Score: +7.79

VR is trading at a significant discount to their already discounted peers. Cash flow is outstanding, they recently closed an accretive acquisition (and beat out Buffett's bid in the process), forward P/E relative to current price is extremely low, and they recently approved a $400 million stock buyback (more than 10% of outstanding shares at current prices).
If the stock price doesn't move up, VR is itself a prime target for acquisition. Buy IMO.

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Member Avatar dantefromsomm (< 20) Submitted: 12/26/2009 4:04:21 PM : Outperform Start Price: $21.73 VR Score: +7.06

I have to research further i cant see why its so cheap.Every thing looks excellent

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Member Avatar starbucks4ever (97.79) Submitted: 11/20/2009 12:14:31 AM : Outperform Start Price: $20.50 VR Score: +12.47

Insurance industry is always a winner.

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Member Avatar Itemirus (< 20) Submitted: 9/9/2009 2:42:17 AM : Outperform Start Price: $20.05 VR Score: +4.14

Although the insurance business is somewhere outside my circle of competence, i picked VR (and added it to my portfolio) for a simple reason (keep it simple, stupid!) - VR's management outsmarted a couple of competitors (max Capital and Flagstone RE) and, more noticeably, Mr. Buffett himself on the acquisition of peer company IPC Reinsurance - Mr. Buffett had offered to buy IPC for 1.7 billion dollars in cash, while the guys at VR bought it in a cash and share deal for 1.65 billions. This tells me a couple of things: first if Warren Buffett (who knows the insurance business far better than most anybody else), offered to buy IPC for 1.8 billion dollars, then it means that the company is worth considerably more, at least sometime in the predictable future; second, if the guys at VR managed to buy it for less, it means they indeed know their trade and that the combined company will be worth more in the future.
Although this alone is more than enough for me to pick VR as a winner, i also checked some data and found out that the company is being sold around book value (the insurance industry has been in distress recently but the outlook is favorable), it carries little debt and a simple DCF valuation gives a fair value of around $50 per share.

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Member Avatar djbusby (42.05) Submitted: 5/21/2008 9:13:45 PM : Outperform Start Price: $16.31 VR Score: +103.20

Validus Holdings is dirt cheap right now. Despite a market cap of over $1.5 billion, very few analysts cover the stock resulting in extremely low awareness. What few analysts actually follow the stock expect earnings to decrease from their current level of $5.69 for the last 12 months, to $4.85 at the ends of both 2008 and 2009. At current valuations, that's still only a PE of around 4.5! (currently the PE ratio is a meager 3.8).

The fact that Validus is extremely undervalued shows up in more than just it's PE. Validus shares currently trade at only 89% of book value, on a diluted share basis! There is very little downside, and even if the stock price languishes for awhile (quite possible given current general market uncertainties), Validus pays a healthy 3.8% dividend yield, which corresponds to a paltry 14% payout ratio.

Overall, people are shying away from insurance and reinsurance companies because of extremely competitive rate wars, but the bottom line is many of these financially sound companies have been driven to unwarranted ridiculously low prices. With a sound balance sheet, conservative leadership, and a diverse portfolio, Validus is currently the cheapest of the best.

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