Is Markel Group (MKL) Pricing Reflect Its Excess Returns Versus P/E Signals?

Simply Wall St.02-01

If you are wondering whether Markel Group's current share price matches its underlying worth, you are not alone. This article is built to help you unpack that question clearly. Markel Group's shares ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2608809888?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/industry/7214000-choice1-main-header/1585186744718","is_english":true,"pubTime":"2026-02-01 17:24","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2608809888","market":"nz","top_or_hot":-1,"title":"Is Markel Group (MKL) Pricing Reflect Its Excess Returns Versus P/E Signals?","media":"Simply Wall St.","content":"<div>\n<p>If you are wondering whether Markel Group's current share price matches its underlying worth, you are not alone. This article is built to help you unpack that question clearly. Markel Group's shares ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/insurance/nyse-mkl/markel-group/news/is-markel-group-mkl-pricing-reflect-its-excess-returns-versu\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Markel Group (MKL) Pricing Reflect Its Excess Returns Versus P/E Signals?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Markel Group (MKL) Pricing Reflect Its Excess Returns Versus P/E Signals?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-01 17:24 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/insurance/nyse-mkl/markel-group/news/is-markel-group-mkl-pricing-reflect-its-excess-returns-versu><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you are wondering whether Markel Group's current share price matches its underlying worth, you are not alone. This article is built to help you unpack that question clearly. Markel Group's shares ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/insurance/nyse-mkl/markel-group/news/is-markel-group-mkl-pricing-reflect-its-excess-returns-versu\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"MKL","symbol_name":"Markel Corp","start_time":0,"source_url":"https://simplywall.st/stocks/us/insurance/nyse-mkl/markel-group/news/is-markel-group-mkl-pricing-reflect-its-excess-returns-versu","article_id":"2608809888","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/7214000-choice1-main-header/1585186744718"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/insurance/nyse-mkl/markel-group/news/is-markel-group-mkl-pricing-reflect-its-excess-returns-versu","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2608809888","pubTimestamp":1769937895,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Markel Group's current share price matches its underlying worth, you are not alone. This article is built to help you unpack that question clearly.\nMarkel Group's shares most recently closed at US$2,040.64, with returns of 0.6% over the last 7 days, a 4.2% decline over 30 days, and gains of 11.6% over 1 year, 52.8% over 3 years, and 85.6% over 5 years.\nRecent coverage around Markel Group has focused on its position as a specialty insurance and investment company,...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"MKL":"Markel Corp","IE0008368304.USD":"STEWART INVESTORS WORLDWIDE LEADERS SUSTAINABILITY FUND \"I\" (USD) ACC","BK4548":"巴美列捷福持仓","BK4107":"财产与意外伤害保险"},"translate_title":"Markel Group(MKL)的定价是否反映了其超额回报与市盈率信号？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MKL":1.5},"content_text":"If you are wondering whether Markel Group's current share price matches its underlying worth, you are not alone. This article is built to help you unpack that question clearly. Markel Group's shares most recently closed at US$2,040.64, with returns of 0.6% over the last 7 days, a 4.2% decline over 30 days, and gains of 11.6% over 1 year, 52.8% over 3 years, and 85.6% over 5 years. Recent coverage around Markel Group has focused on its position as a specialty insurance and investment company, which often draws attention when markets reassess risk and capital allocation across financial names. That backdrop helps frame the recent share price moves and sets up a closer look at whether the current price still lines up with the business fundamentals. On our framework of six valuation checks, Markel Group scores 2 out of 6. You can see that valuation score in more detail before we compare common approaches like P/E, asset based measures, and cash flow models, then finish with a more holistic way to think about value at the end of this article.  Markel Group scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Markel Group Excess Returns Analysis The Excess Returns model looks at how much profit a company can generate on its equity above the return that shareholders require, then capitalizes that surplus to estimate what the whole business might be worth per share. For Markel Group, the model starts with a Book Value of US$1,429.48 per share and a Stable EPS of US$222.83 per share, based on the median return on equity from the past 5 years. The required return, or Cost of Equity, is US$120.38 per share, which leaves an Excess Return of US$102.45 per share. The analysis also uses an Average Return on Equity of 12.88% and a Stable Book Value estimate of US$1,730.56 per share, drawn from weighted future book value estimates from 2 analysts. Feeding these inputs into the Excess Returns framework produces an estimated intrinsic value of about US$4,502.59 per share. Compared with the recent share price of about US$2,040.64, this indicates the stock is trading at a 54.7% discount to this model’s estimate of intrinsic value. Result: UNDERVALUED on this model Our Excess Returns analysis suggests Markel Group is undervalued by 54.7%. Track this in your watchlist or portfolio, or discover 875 more undervalued stocks based on cash flows. MKL Discounted Cash Flow as at Feb 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Markel Group. Approach 2: Markel Group Price vs Earnings For a profitable company like Markel Group, the P/E ratio is a straightforward way to connect what you pay for each share with the earnings that support it. It is popular because it ties directly to the bottom line that ultimately matters to shareholders, earnings per share. What counts as a “normal” P/E depends on how the market views a company’s growth potential and risk. Higher expected growth or lower perceived risk can support a higher P/E, while lower growth expectations or higher risk usually point to a lower, more conservative multiple. Markel Group currently trades on a P/E of 14.20x. That sits slightly above the Insurance industry average of about 13.22x and above the peer group average of 12.80x. Simply Wall St’s Fair Ratio for Markel Group is 12.25x. This Fair Ratio is a proprietary estimate of what P/E might be appropriate given factors such as earnings growth, industry, profit margins, market cap and risk. It aims to be more tailored than a simple comparison with peers or the broad industry, because it adjusts for company specific characteristics rather than assuming all insurers deserve the same multiple. With the current P/E of 14.20x above the Fair Ratio of 12.25x, Markel Group screens as OVERVALUED on this metric. Result: OVERVALUED NYSE:MKL P/E Ratio as at Feb 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1426 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Markel Group Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to connect your view of Markel Group with clear numbers. A Narrative is your story about the company, written in financial terms, where you set assumptions for future revenue, earnings and margins, then see what fair value those assumptions point to. Each Narrative links three pieces together: what you think Markel Group’s business story looks like, how that story flows into a forecast, and what price you think is reasonable based on those cash flows. On Simply Wall St, millions of investors share and update these Narratives on the Community page, so you can see different fair value estimates next to the current share price and decide whether the gap looks attractive to you or not. Narratives update automatically when fresh information such as earnings or news is added, so your fair value view moves with the facts. For Markel Group, one investor might build a Narrative with a higher fair value based on stronger margin assumptions, while another might land on a much lower fair value using more cautious revenue and profitability estimates. Do you think there's more to the story for Markel Group? Head over to our Community to see what others are saying! NYSE:MKL 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2608809888","isCrawlerRequest":true}