Selective Insurance Group, Inc. (SIGI) 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

+94.6%

$194.98

vs $100.21 price

Levered DCF

$772.21

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.35

Distress zone

Rating

B+

Overall 3 / 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	11.19×	28.78×	17.03×	25.03×	12.61×	16.3×	14.26×	20.31×
P/B	1.42×	1.82×	2.05×	2.13×	1.67×	1.47×	1.76×	2.03×
P/S	0.96×	1.17×	1.43×	1.52×	1.47×	1.37×	1.36×	1.41×
EV / EBITDA	9.09×	19.23×	12.76×	16.84×	9.28×	11.67×	10.45×	14.41×
Gross margin	40.9%	6.6%	12.2%	9.6%	16.7%	12.3%	14.1%	10.1%
Operating margin	11.0%	5.3%	10.8%	7.9%	15.0%	10.4%	11.8%	8.2%
Net margin	8.7%	4.3%	8.6%	6.3%	12.0%	8.4%	9.5%	6.9%
Current ratio	0.62×	0.64×	0.62×	0.61×	0.61×	0.57×	0.59×	0.59×
Debt / equity	0.28×	0.18×	0.19×	0.22×	0.18×	0.22×	0.26×	0.24×
Interest coverage	11.95×	8.94×	15.92×	9.71×	17.33×	9.82×	9.99×	8.67×
Dividend yield	2.0%	1.7%	1.4%	1.4%	1.4%	1.4%	1.2%	1.2%
Payout ratio	21.9%	45.5%	22.7%	33.8%	17.2%	22.1%	17.6%	23.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.9%	6.6%	12.4%	8.9%	13.5%	9.0%	12.4%	10.0%
Return on invested capital	4.0%	2.1%	4.1%	2.8%	4.9%	3.2%	4.0%	3.0%
Return on assets	3.3%	1.7%	3.3%	2.3%	4.1%	2.7%	3.3%	2.4%
Free cash flow yield	23.4%	18.8%	12.1%	14.4%	15.1%	13.3%	11.5%	12.1%
Earnings yield	9.1%	3.6%	6.0%	4.2%	8.1%	6.1%	7.0%	4.9%
Enterprise value	$6.1B	$6.2B	$6.6B	$5.9B	$5.5B	$4.6B	$4.4B	$4B
Net debt / EBITDA	1.47×	1.53×	1.03×	1.49×	0.85×	1.47×	1.34×	1.48×
Cash conversion cycle (days)	105	110	113	111	102	104	106	109