Platinum Underwriters Holdings (FRA:PMU) Net-Net Working Capital : €-16.61 (As of Dec. 2014)

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What is Platinum Underwriters Holdings Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Platinum Underwriters Holdings's Net-Net Working Capital for the quarter that ended in Dec. 2014 was €-16.61.

The industry rank for Platinum Underwriters Holdings's Net-Net Working Capital or its related term are showing as below:

FRA:PMU's Price-to-Net-Net-Working-Capital is not ranked ^*
in the Insurance industry.
Industry Median: 4.46
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Platinum Underwriters Holdings Net-Net Working Capital Historical Data

The historical data trend for Platinum Underwriters Holdings's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Platinum Underwriters Holdings Net-Net Working Capital Chart

Platinum Underwriters Holdings Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Net-Net Working Capital

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-26.08

-30.18

-13.09

-15.55

-15.72

Platinum Underwriters Holdings Quarterly Data
	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14
Net-Net Working Capital	Get a 7-Day Free Trial															-16.56	-17.16	-17.57	-18.63	-16.61

Competitive Comparison of Platinum Underwriters Holdings's Net-Net Working Capital

For the Insurance - Reinsurance subindustry, Platinum Underwriters Holdings's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Platinum Underwriters Holdings's Price-to-Net-Net-Working-Capital Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Platinum Underwriters Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Platinum Underwriters Holdings's Price-to-Net-Net-Working-Capital falls into.

Platinum Underwriters Holdings Net-Net Working Capital Calculation

Platinum Underwriters Holdings's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2014 is calculated as

	Net-Net Working Capital		(A: Dec. 2014 )
=	(Balance Sheet Cash And Cash Equivalents	+	Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1163.772	+	0	+	0.75 * 0	+	0.5 * 0	-	1580.691
-	0	-	0)	/	26.524
=	-15.72

Platinum Underwriters Holdings's Net-Net Working Capital (NNWC) per share for the quarter that ended in Dec. 2014 is calculated as

	Net-Net Working Capital		(Q: Dec. 2014 )
=	(Balance Sheet Cash And Cash Equivalents	+	Marketable Securities	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(1163.772	+	0	+	0.75 * 0	+	0.5 * 0	-	1580.691
-	0	-	0)	/	25.093
=	-16.61

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

Platinum Underwriters Holdings (FRA:PMU) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.

Platinum Underwriters Holdings Net-Net Working Capital Related Terms

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Platinum Underwriters Holdings (FRA:PMU) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.platinumre.com

Platinum Underwriters Holdings, Ltd. was incorporated on April 19, 2002. It operates as a holding company domiciled in Bermuda. Through its operating subsidiaries, it provides property and marine, casualty and finite risk reinsurance coverages, through reinsurance intermediaries, to a diverse clientele of commercial and personal lines insurers and select reinsurers on a basis. The Company operates through two licensed reinsurance subsidiaries, Platinum Underwriters Bermuda, Ltd., a Bermuda reinsurance company and wholly owned subsidiary of Platinum Holdings, and Platinum Underwriters Reinsurance, Inc., a U.S. reinsurance company and a wholly owned subsidiary of Platinum Underwriters Finance, Inc. The Company operates in Property and Marine, Casualty and Finite Risk segments. It provides reinsurance coverage for damage to property and crops. It provides reinsurance coverage for marine and offshore energy insurance programs. Coverages reinsured include hull damage, protection and indemnity, cargo damage, satellite damage and general marine liability. Within Marine, it also writes commercial and general aviation reinsurance. Casualty reinsurance protects a ceding company against financial loss arising out of the obligation to others for loss or damage to persons or property. The Company's Casualty operating segment mainly includes reinsurance contracts that cover umbrella liability, general and product liability, professional liability, workers' compensation, casualty clash, automobile liability, surety, trade credit, political risk and accident and health. Finite reinsurance includes mainly structured reinsurance contracts with ceding companies whose needs might not be met efficiently through traditional reinsurance products. Reinsurance contracts classified as finite are typically structured to include loss limitation or loss mitigation features. It markets its reinsurance products mainly through non-exclusive relationships with reinsurance brokers. The property and casualty reinsurance industry is competitive. It competes with Arch Capital Group Ltd., Axis Capital Holdings Limited, Endurance Specialty Holdings Ltd., Everest Re Group, Ltd., Montpelier Re Holdings Ltd., PartnerRe Ltd., RenaissanceRe Holdings Ltd. and Transatlantic Holdings, Inc. The business of reinsurance is regulated in several countries, although the degree and type of regulation. Reinsurers are generally subject to less direct regulation than main insurers.

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