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SiriusPoint (SPNT) Valuation Check After Mixed Short Term Moves And Stronger 1 Year Returns

Simply Wall St · 5d ago

SiriusPoint (SPNT) has drawn fresh attention after recent share price moves, with the stock showing mixed short term performance and relatively stronger results over the past 3 months, prompting investors to reassess its current valuation and fundamentals.

See our latest analysis for SiriusPoint.

At a share price of US$21.07, SiriusPoint has recently seen some pressure in the short term, with a 1-day share price return of 3.75% decline and a 7-day share price return of 5.05% decline. However, its 90-day share price return of 16.28% and 1-year total shareholder return of 39.17% indicate that momentum has generally been building over a longer horizon.

If SiriusPoint has you rethinking the insurance space, it can be useful to contrast it with other financial names that screen for fast growing stocks with high insider ownership.

With SiriusPoint trading at US$21.07 and sitting close to both an analyst price target of US$25.00 and an estimated intrinsic value, investors now have to ask: is there real upside left, or is the market already pricing in future growth?

Most Popular Narrative Narrative: 23.4% Undervalued

Against the last close of US$21.07, the most followed narrative anchors on a higher fair value, built around earnings, margins, and capital deployment.

The prudent reserving philosophy, consistent favorable reserve development, and a strong capital position (BSCR ratio of 223%) support underwriting confidence and capital deployment. In the context of tightening industry regulation and rising capital requirements, this is described as supportive of market share gains and book value per share growth for well-capitalized players like SiriusPoint.

Read the complete narrative.

Curious what earnings path and margin profile sit behind that valuation gap? The narrative leans on recalibrated profitability, revenue growth, and a lower future earnings multiple. The full set of assumptions ties those moving parts into one fair value number.

Result: Fair Value of $27.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this hinges on MGA partnerships continuing to perform and reserves staying supportive, as weaker partners or adverse reserve developments could quickly challenge that valuation gap.

Find out about the key risks to this SiriusPoint narrative.

Build Your Own SiriusPoint Narrative

If you think the market story looks different once you see the numbers for yourself, you can rebuild the assumptions in minutes and Do it your way.

A great starting point for your SiriusPoint research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

Ready for more investment ideas beyond SiriusPoint?

If you stop here, you only see part of the picture; broaden your watchlist now and give yourself more options when the next opportunity shows up.

This article by Simply Wall St is general in nature. We provide commentary based on historical data 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 financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.