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Enact Holdings PE Ratio

: 6.47 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2022-08-07), Enact Holdings's share price is $26.21. Enact Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 was $4.05. Therefore, Enact Holdings's PE Ratio for today is 6.47.


The historical rank and industry rank for Enact Holdings's PE Ratio or its related term are showing as below:

ACT' s PE Ratio Range Over the Past 10 Years
Min: 5.6   Med: 6.39   Max: 7.82
Current: 6.47


During the past 3 years, the highest PE Ratio of Enact Holdings was 7.82. The lowest was 5.60. And the median was 6.39.


ACT's PE Ratio is ranked better than
74.19% of 399 companies
in the Insurance industry
Industry Median: 11.16 vs ACT: 6.47

Enact Holdings's Earnings per Share (Diluted) for the three months ended in Mar. 2022 was $1.01. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 was $4.05.

As of today (2022-08-07), Enact Holdings's share price is $26.21. Enact Holdings's EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2022 was $4.05. Therefore, Enact Holdings's PE Ratio without NRI for today is 6.47.

During the past 3 years, Enact Holdings's highest PE Ratio without NRI was 7.82. The lowest was 5.60. And the median was 6.39.

Enact Holdings's EPS without NRI for the three months ended in Mar. 2022 was $1.01. Its EPS without NRI for the trailing twelve months (TTM) ended in Mar. 2022 was $4.05.

During the past 12 months, Enact Holdings's average EPS without NRI Growth Rate was 65.60% per year.

Enact Holdings's EPS (Basic) for the three months ended in Mar. 2022 was $1.01. Its EPS (Basic) for the trailing twelve months (TTM) ended in Mar. 2022 was $4.05.


Enact Holdings PE Ratio Historical Data

The historical data trend for Enact Holdings's PE Ratio 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.

* Premium members only.

Enact Holdings Annual Data
Trend Dec19 Dec20 Dec21
PE Ratio
N/A N/A 6.15

Enact Holdings Quarterly Data
Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only N/A 7.38 6.15 6.18 At Loss

Competitive Comparison

For the Insurance - Specialty subindustry, Enact Holdings's PE Ratio, along with its competitors' market caps and PE Ratio 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.

   

Enact Holdings PE Ratio Distribution

For the Insurance industry and Financial Services sector, Enact Holdings's PE Ratio distribution charts can be found below:

* The bar in red indicates where Enact Holdings's PE Ratio falls into.



Enact Holdings PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Enact Holdings's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=26.21/4.050
=6.47

Enact Holdings's Share Price of today is $26.21.
Enact Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $4.05.

* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Enact Holdings  (NAS:ACT) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Enact Holdings PE Ratio Related Terms

Thank you for viewing the detailed overview of Enact Holdings's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Enact Holdings Business Description

Enact Holdings logo
Traded in Other Exchanges
N/A
Address
8325 Six Forks Road, Raleigh, NC, USA, 27615
Website
Enact Holdings Inc is a private mortgage insurance company serving the United States housing finance market. The principal mortgage insurance customers are originators of residential mortgage loans who determine which mortgage insurer or insurers they will use for the placement of mortgage insurance written on loans they originate. The company is engaged in the business of writing and assuming residential mortgage guaranty insurance.
Executives
Bless Michael A director C/O ROCKWELL INTERNATIONAL INC 777 E. WISCONSIN AVE #1400 MILWAUKEE WI 53202
Sheehan Daniel J Iv director 6620 WEST BROAD STREET RICHMOND VA 23230
Mitchell Hardin Dean officer: EVP, CFO and Treasurer 8325 SIX FORKS ROAD RALEIGH NC 27615
Gould Brian officer: EVP & Chief Operations Officer 8325 SIX FORKS ROAD RALEIGH NC 27615
Derstine Michael officer: EVP and Chief Risk Officer 8325 SIX FORKS ROAD RALEIGH NC 27615
Stolove Evan officer: EVP, Gen. Counsel & Secretary 8325 SIX FORKS ROAD RALEIGH NC 27615
Mcmullen James officer: Controller C/O GENWORTH MORTGAGE HOLDINGS, INC. 8325 SIX FORKS ROAD RALEIGH NC 27615
Genworth Holdings, Inc. 10 percent owner 6620 WEST BROAD STREET RICHMOND VA 23230
Gupta Rohit director, officer: President and CEO C/O GENWORTH FINANCIAL, INC. 6620 WEST BROAD STREET RICHMOND VA 23230
Waleski Anne G director 1508 WEST AVENUE RICHMOND VA 23220
Thompson Westley V director THE PHOENIX COMPANIES, INC. ONE AMERICAN ROW HARTFORD CT 06102
Mcinerney Thomas J director 6620 WEST BROAD STREET RICHMOND VA 23230
Still Debra director 520 MADISON AVE, 32ND FL C/O CHIMERA INVESTMENT CORPORATION NEW YORK NY 10022
Hooda Sheila director C/O VIRTUS INVESTMENT PARTNERS, INC. 100 PEARL STREET HARTFORD CT 06103
Fisk John D director C/O AGNC INVESTMENT CORP. 2 BETHESDA METRO CENTER, 12TH FLOOR BETHESDA MD 20814

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