I don't know where most insurers trade at the moment relative to their book value. What i do know is that they tend to earn their cost of capital over the cycle - https://www.mckinsey.com/industries...ce-industry-insights--an-in-depth-perspective. The financial corollary for a company that earns its cost of capital over the cycle is that is should trade close to book value.
If you wanted to underwrite an investment in TWR and assume you're going to exit the investment at a significant premium to book value, that'd be imprudent in my mind unless you had good reason to believe that it was going to earn more than its cost of capital into perpetuity...which is very rarely the case for insurers.
Capital Raising, page-26
-
- There are more pages in this discussion • 11 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add TWR (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$1.16 |
Change
-0.010(0.85%) |
Mkt cap ! $432.6M | |||
| Open | High | Low | Value | Volume |
| $1.20 | $1.20 | $1.16 | $7.302K | 6.088K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 515 | $1.16 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.22 | 8726 | 1 |
View Market Depth
| Last trade - 15.32pm 15/11/2024 (20 minute delay) ? |
| TWR (ASX) Chart |
