AXIS Capital Holdings Limited
AI Valuation
AI-generated fair value estimate for this company.
AI Fair Value
$104.60
Market Price
$95.62
Undervalued By
8.6%
Method: Excess-return (Gordon growth on book value) model: book value per share $81.39, assumed sustainable ROE 12% (moderated from current 17.4% for insurance-cycle normalization), cost of equity 10%, terminal growth 3%, giving a fair P/B of (0.12-0.03)/(0.10-0.03) = 1.286x book value.
Reasoning: As a Bermuda specialty insurer/reinsurer, value is best expressed as a multiple of book value driven by sustainable ROE in excess of cost of equity rather than unlevered FCF.