MGIC Investment Corporation (MTG) 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

+117.9%

$62.57

vs $28.72 price

Levered DCF

$72.49

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

4.73

Safe zone

Rating

A+

Overall 5 / 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	9.22×	8.12×	7.65×	4.59×	7.59×	9.58×	7.42×	5.88×
P/B	1.28×	1.2×	1.08×	0.86×	0.99×	0.91×	1.16×	1.1×
P/S	5.43×	5.14×	4.74×	3.39×	4.07×	3.56×	4.12×	3.5×
EV / EBITDA	7.08×	6.47×	5.9×	3.62×	6.05×	7.72×	5.97×	4.83×
Gross margin	94.9%	100.5%	100.9%	120.7%	93.5%	68.5%	89.2%	95.7%
Operating margin	76.5%	80.2%	78.1%	92.9%	67.6%	46.6%	69.9%	75.1%
Net margin	60.8%	63.2%	61.7%	73.8%	53.6%	37.2%	55.5%	59.6%
Current ratio	0×	10.73×	9.43×	7.84×	6.31×	0×	0×	4.24×
Debt / equity	0.13×	0.12×	0.13×	0.14×	0.24×	0.26×	0.19×	0.23×
Interest coverage	26.91×	27.21×	24.45×	22.68×	11.24×	9.38×	16.1×	15.93×
Dividend yield	2.0%	2.1%	2.2%	2.8%	2.0%	1.9%	0.8%	0.0%
Payout ratio	17.9%	17.1%	17.2%	12.8%	14.8%	18.4%	6.2%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	14.3%	14.8%	14.1%	18.6%	13.1%	9.5%	15.6%	18.7%
Return on invested capital	11.1%	12.8%	12.1%	15.8%	10.2%	0.0%	0.0%	15.2%
Return on assets	11.1%	11.7%	10.9%	13.9%	8.7%	6.1%	10.8%	11.8%
Free cash flow yield	12.9%	11.7%	13.0%	16.3%	14.4%	17.1%	12.1%	13.5%
Earnings yield	11.2%	12.3%	13.0%	21.8%	13.2%	10.5%	13.5%	17.0%
Enterprise value	$6.9B	$6.6B	$5.8B	$4.3B	$5.7B	$5.2B	$5.7B	$4.6B
Net debt / EBITDA	0.29×	0.41×	0.29×	0.28×	0.92×	1.41×	0.71×	0.71×
Cash conversion cycle (days)	17	51	51	50	65	46	24	39,297