Enact Holdings Inc. (ACT) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+78.5%

$85.11

vs $47.69 price

Levered DCF

$97.47

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

5.04

Safe zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	8.73×	7.36×	6.98×	5.58×	6.15×	9.03×	5.94×	6.9×
P/B	1.1×	1.01×	1×	0.96×	0.82×	0.86×	0.87×	1.02×
P/S	4.78×	4.21×	4.03×	3.59×	3×	3.02×	3.41×	3.97×
EV / EBITDA	6.65×	5.62×	5.31×	4.38×	4.96×	7.46×	3.82×	5.18×
Gross margin	91.1%	78.2%	78.3%	86.7%	66.8%	44.3%	73.4%	100.0%
Operating margin	69.8%	73.1%	73.8%	82.0%	62.1%	42.7%	73.4%	73.0%
Net margin	54.8%	57.2%	57.7%	64.3%	48.8%	33.5%	69.2%	57.5%
Current ratio	6.86×	5.5×	4.31×	2.69×	1.9×	1.39×	1.63×	0.47×
Debt / equity	0.14×	0.15×	0.17×	0.19×	0.19×	0.2×	0.01×	0×
Interest coverage	17.19×	17.16×	16.42×	17.37×	13.63×	25.89×	0×	0×
Dividend yield	2.1%	2.2%	4.6%	6.4%	6.0%	13.1%	7.5%	1.5%
Payout ratio	17.9%	16.2%	32.0%	35.6%	36.6%	118.1%	36.9%	10.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.6%	13.8%	14.4%	17.2%	13.3%	9.5%	17.7%	14.8%
Return on invested capital	9.9%	10.7%	11.0%	12.7%	9.6%	6.9%	13.5%	13.2%
Return on assets	9.8%	10.5%	10.7%	12.3%	9.2%	6.5%	14.9%	11.8%
Free cash flow yield	12.3%	13.6%	13.6%	14.4%	-3.4%	21.1%	9.7%	15.3%
Earnings yield	11.5%	13.6%	14.3%	17.9%	16.2%	11.1%	20.3%	14.5%
Enterprise value	$6B	$5.2B	$4.8B	$4.2B	$3.7B	$3.7B	$2.8B	$3.2B
Net debt / EBITDA	0.18×	0.17×	0.17×	0.27×	0.47×	0.66×	-0.73×	-0.26×
Cash conversion cycle (days)	14	16	14	14	14	15	15	17