WRB
W. R. Berkley Corporation$71.54
Sell
Target $61.00
Report: Feb 24, 2026Financial Services • Insurance - Property & Casualty • Mature CompounderSnapshot
Decision-first overview with recommendation, valuation anchor, and current setup.
Company Overview
Research Snapshot
Price History
Pelican View
Current$71.54-14.7%
Rec: SellConviction: High
Entry Target
N/A
N/A
Fair Value
$61.00
(15% below current)
Stop Loss
N/A
N/A
Position Size
None
Time Horizon
N/A
Key Metrics
Live Snapshot
Market Data
52 Week High$78.96
52 Week Low$62.63
Avg. 3 Month Volume2.31M
Efficiency
LTM Gross Margin47.2%
LTM EBITDA Margin16.0%
LTM EBIT Margin16.3%
LTM Operating Margin16.4%
LTM ROA4.1%
LTM ROE18.9%
LTM ROIC5.5%
LTM ROCE5.7%
Capital Structure
Market Cap (MM)$24.8B
Enterprise Value (MM)$25.2B
Shares Outstanding374.49M
Total Debt (MM)$2.91B
Cash & Equivalents (MM)$2.54B
LTM Net Debt (MM)$366.07M
LTM Net Debt/EBITDA0.2x
Growth
TTM Rev. Growth7.8%
Last 3-Yr Rev. CAGR9.6%
Last 3-Yr EBITDA CAGR7.4%
Last 3-Yr EPS CAGR10.5%
Valuation
Street Target Price$71.00
LTM EV/Revenue1.7x
LTM EV/Gross Profit3.6x
LTM EV/EBIT10.5x
LTM EV/EBITDA10.7x
LTM P/E13.9x
LTM EV/FCF7.3x
LTM P/FCF7.2x
LTM P/TB0.6x
LTM P/B2.6x
Dividend Yield3.0%
Payout Ratio43.3%
Executive SummarySituation: Current price is $71.54 versus fair value $61.0 (-14.7% expected return), and valuation confidence is stable. Debate: Bull case depends on Market recognition of the company's durable competitive advantages and capital return potential Bear case centers on Cyclical underwriting margins in auto liability and social inflation pressures in liability lines could impact profitability Conclusion: Recommendation is Sell with no position, pending a materially better risk/reward setup.
Bull Case
WRB's combination of consistent underwriting profitability, strong investment income generation, and effective capital allocation creates a compounding machine that generates substantial free cash flow and returns excess capital to shareholders. The company's specialized market approach and decentralized structure create a sustainable competitive advantage that supports premium valuation multiples.
Bear Case
Short interest has increased to 6.5% of float, suggesting market skepticism about the company's valuation and strategic direction. The recent negative institutional flows and market skepticism around the strategic investment create some credibility concerns despite strong operational performance.
Key Catalysts
Long-Term (18+ months)Impact: Critical
Market recognition of the company's durable competitive advantages and capital return potential
Mid-Term (6-18 months)Impact: High
Successful implementation of technology and AI investments to drive operational efficiency
Long-Term (18+ months)Impact: Moderate
WRB is relevant for analysis at this moment due to the recent strategic investment by Mitsui Sumitomo Insurance, which validates the company...
Primary Risks
Concern: Medium
Cyclical underwriting margins in auto liability and social inflation pressures in liability lines could impact profitability
Concern: Low
Entry of low-cost competitors could force price cuts and erode market share
Concern: Medium
W. R. Berkley's management team demonstrates exceptional capital allocation skill and strong alignment with shareholders, supported by a con...
Recent Activity
2025-12-05SEC Filing (8-K)
-5.86%W. R. Berkley Corporation informed that MSI has acquired at least 12.5% of its shares under previously announced agreements with the Berkley family.
2025-04-22SEC Filing (8-K)
+5.23%W. R. Berkley Corporation reported Q1 2025 results with 19.9% return on equity.
2025-03-28SEC Filing (8-K)
+7.53%W. R. Berkley Corporation confirmed MSI's arrangement to purchase 15% of shares through open market or private transactions.
2024-04-23SEC Filing (8-K)
-5.21%W. R. Berkley Corporation reported Q1 2024 results with 23.7% return on equity.
2024-01-25SEC Filing (8-K)
+7.18%W. R. Berkley Corporation reported Q4 2023 and full year results with 23.6% return on equity.
Valuation Table