ACGL

BUY

Arch Capital Group Ltd.

Financial Services · Rank #8 · Analyzed Oct 18, 2026

$101.27

Current Price

$135.48

Intrinsic Value

+33.8%

Upside/Downside

8.7/10

Score

4/5

Quality

Analysis Summary

Valuation Consensus2/3 methods agree

Quality Score4/5.0

Framework RatingBUY

Price vs Intrinsic ValueUndervalued by 33.8%

Fair Value Range

Low$53.89

Base (IV)$135.48

High$177.58

Entry Points

Conservative$37.72

Moderate$53.89

Aggressive$94.84

⚠️ Warnings

Unusually high FCF yield (18%) — DCF may be unreliable
Financial sector — DCF less reliable (FCF includes reserves/float)

Quality & Moat Breakdown

Return on Equity19.9% → 1.0/1.0

Debt LevelD/E 18 → 1.0/1.0

Revenue QualityGrowth 14.0%, margin Δ+0.0% → 0.5/1.0

Moat Strength2.5/5 → 0.5/1.0

Profit Margins24.4% → 1.0/1.0

Methodology

This analysis uses a unified valuation framework combining three methods, Discounted Cash Flow (3-scenario), Earnings Power Value, and Asset Valuation, with a quality scoring overlay. A stock needs 2/3 valuation methods to agree and a quality score ≥ 3.5/5 for a BUY rating.

Learn how this framework works →

This is a personal analysis tool, not financial advice. Do your own research before making investment decisions.