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IntroductionThe concept of valuationRevenue and revenue growthVariable costsFixed costsProduction assets

Intrinsic value of Mercury General Corporation (MCY)

Previous Close$32.32
Intrinsic Value$55.00*
Upside potential  +70%
Previous Close
$32.32
Intrinsic Value
$55.00*
Potential        
+70%
* Our model cannot be used “out of the box” for the valuation of this stock. You can still do your own valuation by changing the valuation input parameters.
Use floor (the cash flow based valuation has rendered a result, which is lower than an estimated minimum value derived from the company’s balance sheet analysis)

VALUATION INPUT DATA (original, your and others' valuations)

ParameterOrig.Your
Date of valuation (DoV)  
Intrinsic value (IV) at DoV, $/sh  
IV at current val. algorithm, $/sh54.96 55

The original valuation is based on fiscal year data as of 2021-12-31 and quarterly data as of 2022-03-31.

Registered users can save their valuation input data

  1. Annual
  2. Quarterly YoY
  3. Quarterly QoQ

Annual revenue growth rates, % (past and forecasted)

NOTE: The bar chart shows historic and forecasted yearly revenue growth rates. Its purpose is to help you in determining what initial revenue rate you want to base your stock valuation on. Please make sure that you are confident in the value you select - for most stocks it is by far the most important parameter in valuation.

Company description

Mercury General Corporation, together with its subsidiaries, engages in writing personal automobile insurance in the United States. It also writes homeowners, commercial automobile, commercial property, mechanical protection, fire, and umbrella insurance. The company's automobile insurance products cover collision, property damage, bodily injury, comprehensive, personal injury protection, underinsured and uninsured motorist, and other hazards; and homeowners' insurance products cover dwelling, liability, personal property, fire, and other hazards. It sells its policies through a network of independent agents, 100% owned insurance agents, and direct channels in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia. The company was founded in 1961 and is headquartered in Los Angeles, California.

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2021(a)2022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046

INCOME STATEMENT

Revenue growth rate, %5.5NaN
Revenue, $3993NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $m3677NaN
Operating income, $m316NaN
EBITDA, $m395NaN
Interest expense (income), $mNaN
Earnings before tax, $m299NaN
Tax expense, $m51NaN
Net income, $m248NaN

BALANCE SHEET

Cash and short-term investments, $m336NaN
Total assets, $m6831NaN
Adjusted assets (=assets-cash), $m6495NaN
Average production assets, $m275NaN
Working capital, $m-2868NaN
Total debt, $m395NaN
Total liabilities, $m4691NaN
Total equity, $m2140NaN
Debt-to-equity ratio0.185NaN
Adjusted equity ratio0.278NaN

CASH FLOW

Net income, $m248NaN
Depreciation, amort., depletion, $m79NaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $m502NaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $m-41NaN
Free cash flow, $m543NaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $m-2868
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN
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