Bowhead Specialty Holdings Inc. (BOW) 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

+151.8%

$86.26

vs $34.26 price

Levered DCF

$631.94

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.5

Distress zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

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

Metric	FY2025	FY2024	FY2023	FY2022
P/E	17.4×	27.11×	30.13×	66.11×
P/B	2.08×	2.81×	3.91×	9×
P/S	1.7×	2.44×	2.65×	4×
EV / EBITDA	12.5×	17.16×	18.39×	44.56×
Gross margin	32.1%	34.1%	33.9%	32.3%
Operating margin	12.2%	11.9%	11.3%	7.8%
Net margin	9.8%	9.0%	8.8%	6.0%
Current ratio	0.96×	701.49×	0×	1.41×
Debt / equity	0.33×	0.01×	0×	0×
Interest coverage	33.45×	69.7×	0×	0×
Dividend yield	0.0%	0.0%	0.0%	3.3%
Payout ratio	0.0%	0.0%	0.0%	222.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022
Return on equity	12.0%	10.3%	13.0%	13.5%
Return on invested capital	8.9%	3.4%	5.4%	12.6%
Return on assets	2.3%	2.3%	2.4%	2.0%
Free cash flow yield	34.8%	28.0%	31.0%	23.7%
Earnings yield	5.7%	3.7%	3.3%	1.5%
Enterprise value	$888.5M	$946.2M	$632.3M	$685.7M
Net debt / EBITDA	-0.66×	-1.69×	-3.43×	-4.2×
Cash conversion cycle (days)	266	206	-27	384