| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 42.20 | 235 |
| Intrinsic value (DCF) | 106.98 | 748 |
| Graham-Dodd Method | 1.39 | -89 |
| Graham Formula | 5.04 | -60 |
Hagerty, Inc. (NYSE: HGTY) is a leading specialty insurance provider and automotive lifestyle brand catering to classic and enthusiast vehicle owners worldwide. Headquartered in Traverse City, Michigan, Hagerty operates at the intersection of insurance, media, and automotive culture, offering a unique ecosystem for car enthusiasts. The company provides tailored insurance products for collector cars and boats, complemented by its Hagerty Drivers Club (HDC) membership program, which includes valuation tools, roadside assistance, and exclusive events. Hagerty further diversifies its revenue streams through media content via HDC Magazine and YouTube, peer-to-peer vehicle rentals via DriveShare, and event management through Motorsport Reg. With a market cap of approximately $825 million, Hagerty has carved a niche in the Property & Casualty insurance sector by combining financial services with enthusiast-driven experiences. Its vertically integrated model differentiates it from traditional insurers, positioning the company as a lifestyle brand for automotive aficionados.
Hagerty presents a compelling growth opportunity as a hybrid insurance-media company targeting the underserved classic car market. Its competitive moat lies in its integrated ecosystem combining insurance, valuation tools, media, and events—a model difficult for traditional insurers to replicate. With $1.2 billion in revenue and positive operating cash flow ($177M in FY2023), the company demonstrates scalability in its niche. However, investors should note its modest net income ($17M) and exposure to discretionary spending trends in the collector car market. The stock's beta of 0.88 suggests lower volatility than the broader market, but its growth depends on expanding its enthusiast community and monetizing ancillary services. The lack of dividends may deter income-focused investors, but Hagerty's unique positioning could appeal to growth-oriented portfolios seeking exposure to specialty insurance and experiential consumer services.
Hagerty's competitive advantage stems from its vertical integration across insurance, data, and automotive lifestyle services—a combination unmatched by traditional insurers. Its proprietary HVT valuation tool establishes Hagerty as an industry authority, creating sticky customer relationships. Unlike commoditized auto insurers, Hagerty commands premium pricing through specialized underwriting expertise for collector vehicles and bundled membership perks. The company's media division (HDC Magazine, YouTube) fosters brand loyalty and serves as a customer acquisition channel, while its event business drives community engagement. Competitively, Hagerty faces limited direct competition in the classic car insurance niche, though it competes indirectly with broad-line insurers for high-net-worth clients. Its peer-to-peer rental platform (DriveShare) competes with Turo but focuses exclusively on classic vehicles. Hagerty's main challenges include scaling its capital-intensive insurance operations while maintaining underwriting discipline, and expanding its addressable market beyond aging collector car demographics. The company's tech-enabled services (Motorsport Reg, HVT) provide data advantages, but legacy insurers could replicate these features for high-value clients.