RLI Corp. (RLI) 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

+116.4%

$144.69

vs $66.87 price

Levered DCF

$235.00

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.11

Grey 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	14.61×	21.8×	19.93×	10.21×	18.14×	29.76×	21.03×	47.9×
P/B	3.32×	4.96×	4.3×	5.06×	4.12×	4.13×	4.05×	3.8×
P/S	3.13×	4.26×	4.02×	3.51×	4.28×	4.75×	4×	3.74×
EV / EBITDA	11.21×	17.22×	15.87×	8.6×	14.42×	23.3×	16.62×	38.72×
Gross margin	29.8%	25.7%	25.9%	43.1%	38.8%	31.2%	35.3%	21.9%
Operating margin	27.5%	24.2%	25.0%	42.4%	29.1%	19.2%	23.1%	8.2%
Net margin	21.4%	19.5%	20.1%	34.4%	23.6%	15.9%	19.0%	7.8%
Current ratio	0.67×	1.12×	1.14×	1.1×	1.16×	0×	0×	1.02×
Debt / equity	0.06×	0.07×	0.14×	0.34×	0.16×	0.13×	0.15×	0.18×
Interest coverage	96.73×	67.53×	51.67×	89.56×	44.85×	24.97×	30.67×	9.09×
Dividend yield	4.1%	3.1%	2.3%	6.1%	2.7%	1.9%	2.1%	2.7%
Payout ratio	59.9%	68.2%	46.0%	62.5%	48.4%	56.0%	44.7%	129.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	22.7%	22.7%	21.5%	49.6%	22.7%	13.8%	19.3%	8.0%
Return on invested capital	20.0%	19.4%	18.4%	38.6%	17.9%	0.0%	0.0%	6.7%
Return on assets	6.5%	6.1%	5.9%	12.2%	6.2%	4.0%	5.4%	2.1%
Free cash flow yield	10.3%	7.4%	7.5%	4.1%	7.4%	5.5%	6.7%	6.9%
Earnings yield	6.8%	4.6%	5.0%	9.8%	5.5%	3.4%	4.8%	2.1%
Enterprise value	$5.9B	$7.6B	$6.2B	$6.3B	$5.2B	$4.8B	$4.1B	$3.2B
Net debt / EBITDA	0.09×	0.14×	0.42×	0.51×	0.31×	0.43×	0.41×	1.31×
Cash conversion cycle (days)	181	197	219	181	223	206	183	990