Wed, Jul 23, 2014, 11:30 PM EDT - U.S. Markets closed

Recent

% | $
Click the to save as a favorite.

Investors Title Co. Message Board

  • astral_tsar astral_tsar Jul 30, 2004 8:38 PM Flag

    Value

    How much is this stock worth? I think it's worth nearly $60 per share.

    Break the Q2 balance sheet in two:

    1. An operating business with a book value of about $4 per share and underwriting earnings of about $3/share. Value: about twelve times earnings, or $36/share. (That's assuming no future earnings growth ... actual growth has been 14% annually for 20 years.)

    2. A pile of securities worth almost $22 per share, returning 80 or 90 cents per share after tax. (Mostly these are tax-free municipals anyhow.) Value: $22/share.

    Total: $58/share.



    Comments
    The operating business is excellent, one of a kind. Earnings, book value, and book-value-plus-reserves ("float") have all grown at 14% annually for the past 20 years.

    In contrast to the titans of the title insurance industry, ITIC reserves about 10% of premium revenue for losses. Very conservative. FNF and FAF reserve only about 5%.

 
ITIC
69.64+0.37(+0.53%)Jul 23 4:00 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.