Markel Corporation (MKL) 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

+133.8%

$4,443.75

vs $1,900.68 price

Levered DCF

$5,404.10

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.24

Distress 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	12.66×	8.64×	9.64×	-55.54×	6.97×	18.56×	8.84×	-112.71×
P/B	1.47×	1.33×	1.26×	1.36×	1.15×	1.11×	1.43×	1.59×
P/S	1.65×	1.34×	1.21×	1.51×	1.32×	1.48×	1.66×	2.08×
EV / EBITDA	8.41×	5.72×	6.2×	50.45×	4.89×	9.14×	6×	40.26×
Gross margin	69.4%	55.4%	51.4%	28.8%	45.6%	35.1%	51.0%	38.1%
Operating margin	16.5%	21.7%	16.9%	-1.3%	24.2%	10.4%	24.0%	-0.1%
Net margin	12.7%	16.4%	12.7%	-1.8%	18.8%	8.5%	18.8%	-1.8%
Current ratio	0.84×	0×	0×	1.18×	1.27×	0×	0×	0.69×
Debt / equity	0.23×	0.33×	0.33×	0.31×	0.33×	0.35×	0.36×	0.33×
Interest coverage	13.27×	17.81×	14.34×	-0.77×	17.05×	5.63×	13.31×	-0.05×
Dividend yield	2.3%	0.2%	0.2%	0.2%	0.2%	0.1%	0.0%	0.0%
Payout ratio	29.3%	1.3%	1.8%	-16.6%	1.5%	2.3%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.3%	16.2%	13.3%	-1.6%	16.5%	6.4%	16.2%	-1.4%
Return on invested capital	7.4%	6.0%	4.8%	-0.5%	10.1%	2.4%	5.9%	-0.0%
Return on assets	3.1%	5.8%	4.6%	-0.4%	5.0%	2.4%	5.8%	-0.5%
Free cash flow yield	9.4%	10.4%	13.3%	13.7%	12.5%	11.5%	7.3%	5.4%
Earnings yield	7.7%	12.2%	10.5%	-1.2%	14.3%	5.7%	11.3%	-0.9%
Enterprise value	$27.6B	$23.9B	$19.6B	$17.9B	$17.8B	$13.6B	$16.4B	$15.1B
Net debt / EBITDA	0.1×	0.35×	0.2×	-0.1×	0.23×	-0.47×	0.19×	1.64×
Cash conversion cycle (days)	289	-7	11	323	-115	-290	-388	-363