EG
Everest Re Group, Ltd.$328.05
Hold
Target $395.90
Report: Mar 13, 2026Financial Services • Insurance - Reinsurance • Cyclical OperatorSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$328.05+20.7%
Rec: HoldConviction: Medium
Entry Target
$304.54
(7% below current)
Fair Value
$395.90
(21% above current)
Stop Loss
$295.00
(10% below current)
Position Size
Starter
Time Horizon
Transitional
Key Metrics
Live Snapshot
Market Data
52 Week High$368.29
52 Week Low$302.44
Avg. 3 Month Volume365K
Efficiency
LTM Gross Margin18.2%
LTM EBITDA Margin11.7%
LTM EBIT Margin11.7%
LTM Operating Margin11.6%
LTM ROA2.6%
LTM ROE10.6%
LTM ROIC3.2%
LTM ROCE3.4%
Capital Structure
Market Cap (MM)$13.2B
Enterprise Value (MM)$15.5B
Shares Outstanding40.39M
Total Debt (MM)$3.59B
Cash & Equivalents (MM)$1.32B
LTM Net Debt (MM)$2.27B
LTM Net Debt/EBITDA1.1x
Growth
TTM Rev. Growth1.2%
Last 3-Yr Rev. CAGR13.2%
Last 3-Yr EBITDA CAGR43.6%
Last 3-Yr EPS CAGR35.9%
Valuation
Street Target Price$353.29
LTM EV/Revenue0.9x
LTM EV/Gross Profit4.9x
LTM EV/EBIT7.6x
LTM EV/EBITDA7.6x
LTM P/E8.3x
LTM EV/FCF4.6x
LTM P/FCF3.9x
LTM P/TB0.2x
LTM P/B0.9x
Dividend Yield2.4%
Payout Ratio21.1%
Executive SummarySituation: Current price is $328.05 versus fair value $395.9 (20.7% expected return), and valuation confidence is stable. Debate: Bull case depends on Combined Ratio Stability below 95% Sustained underwriting profitability for two consecutive quarters would validate the margin-expansion narrative and decouple the stock from catastrophe-loss fears. Bear case centers on Lower-for-Longer Cyclical Downturn A structural softening of reinsurance pricing could prevent the expected margin normalization, keeping operating margins below the 12.5% mid-cycle target. Conclusion: Recommendation is Hold with Starter sizing and Transitional horizon.
Bull Case
The primary bull argument rests on the hard-market environment in reinsurance, where rational pricing and disciplined supply are driving a recovery in underwriting income. Furthermore, Everest's expansion into primary insurance provides a stabilizing counterweight to catastrophe volatility, while net insider buying of $3.95 million over the last 12 months suggests management sees deep value at current levels.
Bear Case
The bear case is centered on the risk of social inflation outpacing reserve estimates in US casualty lines, as evidenced by the $478 million reserve charge in FY 2025. Additionally, the company's poor buyback timing-executing $1.5 billion in repurchases at prices near $340 only to see the stock trade at $328-indicates pro-cyclical capital allocation that destroys shareholder value.
Key Catalysts
Mid-Term (6-18 months)Impact: High
Combined Ratio Stability below 95% Sustained underwriting profitability for two consecutive quarters would validate the margin-expansion nar...
Near-Term (0-6 months)Impact: Moderate
Positive Institutional Net Inflow A shift in institutional sentiment, currently at a 93.42% ownership plateau, would signal that the market...
Long-Term (18+ months)Impact: Moderate
Everest Group is relevant for analysis now because it is trading at a significant discount to its historical multiples following a major de-...
Primary Risks
Concern: Medium
Lower-for-Longer Cyclical Downturn A structural softening of reinsurance pricing could prevent the expected margin normalization, keeping op...
Concern: High
Social Inflation and Reserve Inadequacy Rising litigation costs in US casualty lines could lead to further adverse reserve developments, sim...
Concern: Medium
The stewardship verdict is adequate for a cyclical operator. The board is composed of industry veterans, including the recent addition of Jo...
Recent Activity
2025-10-28SEC Filing (8-K)
-11.36%Everest Group reported Q3 2025 results with net income of $255 million and announced strategic transactions.
2025-05-01SEC Filing (8-K)
-5.98%Everest Group reported Q1 2025 results with net income of $210 million and net operating income of $276 million.
2024-10-31SEC Filing (8-K)
-6.42%Everest Group reported Q3 2024 results with net income of $509 million and net operating income of $630 million.
2024-08-01SEC Filing (8-K)
-6.24%Everest reports second quarter 2024 results with record net income of $724 million
2024-02-08SEC Filing (8-K)
-7.65%Everest reports fourth quarter and full-year 2023 results with record annual net income of $2.5 billion
Valuation Table
9.8/10Decision Grade
Scenario Range
$0
Bear
$491
Base
$687
Bull
$328