Radian Group Inc. (RDN) 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

+114.0%

$76.56

vs $35.77 price

Levered DCF

$12.79

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.2

Distress zone

Rating

A-

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	8.61×	8.01×	7.49×	4.31×	6.62×	10.07×	7.81×	5.78×
P/B	1.04×	1.05×	1.03×	0.82×	0.93×	0.92×	1.3×	1×
P/S	3.98×	3.75×	3.64×	2.69×	2.99×	2.75×	3.44×	2.75×
EV / EBITDA	6.94×	7.62×	6.49×	4.23×	5.83×	8.76×	6.32×	5.55×
Gross margin	92.3%	95.1%	98.3%	119.5%	88.4%	58.2%	82.6%	82.1%
Operating margin	61.2%	59.8%	61.9%	80.0%	57.5%	33.3%	55.6%	53.7%
Net margin	46.7%	46.8%	48.6%	62.4%	45.2%	27.3%	44.0%	47.6%
Current ratio	4.28×	42.96×	5.78×	8.63×	19.79×	17.45×	15.16×	16.19×
Debt / equity	0.24×	0.51×	0.36×	0.4×	0.37×	0.37×	0.25×	0.32×
Interest coverage	11.64×	7.43×	8.56×	11.28×	9.06×	6.74×	15.08×	11.13×
Dividend yield	2.9%	3.1%	3.2%	4.2%	2.6%	2.5%	0.0%	0.1%
Payout ratio	25.0%	25.1%	24.2%	18.2%	17.2%	24.8%	0.3%	0.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.2%	13.1%	13.7%	19.0%	14.1%	9.2%	16.6%	17.4%
Return on invested capital	9.4%	7.1%	8.1%	10.7%	7.9%	5.1%	10.3%	10.1%
Return on assets	7.2%	7.0%	7.9%	10.5%	7.7%	5.0%	9.9%	9.6%
Free cash flow yield	2.3%	-13.8%	11.4%	11.6%	13.7%	16.2%	12.7%	18.6%
Earnings yield	11.7%	12.5%	13.4%	23.2%	15.1%	9.9%	12.8%	17.3%
Enterprise value	$6.1B	$7.1B	$6.1B	$4.7B	$5.4B	$5.5B	$6.2B	$4.5B
Net debt / EBITDA	1.26×	2.46×	1.67×	1.36×	1.52×	2.4×	0.95×	1.25×
Cash conversion cycle (days)	103	47	44	45	53	49	26	39