Pricing Log in Create free account
Friday 6 November 2026 Export MTG’s income statement to Excel — free account

MGIC Investment Corporation

MTG Financial Insurance Specialty

MGIC Investment Corporation’s revenue for fiscal 2025 (year ended December 2025) was $1.2 billion, roughly unchanged from fiscal 2024.

Revenue
−1.78%
EPS
+2.41%
Free cash flow
+0.56%
Total debt
+0.23%

Quarter to September 2026, against a year earlier

28.58 0.77 −2.62%
Market cap
$6.0B
P/E
9.1×
Fwd P/E
8.7×
Dividend yield
1.61%
F-score
6/9
Altman Z
n/a
Beneish M
n/a
Dividend safety
n/a
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Valuation Filings

MGIC Investment Corporation (MTG) valuation and DCF model

What the price implies · reverse DCF

At $28.58 the price implies 16.7% a year of dividend growth, at a 9.0% cost of equity.

The dividend a share grew 19.8% a year over the last five years. The price asks for close to its five-year rate. Return on equity averaged 14.9% over ten years; the price implies 10.3% for good.

In December 2019 the price assumed 40.7% a year; MGIC Investment Corporation went on to grow the dividend a share 5.4% a year to FY2025.

Price implies
16.7%
Last 5 years, reported
19.8%

The headline discounts the last twelve months’ the dividend a share at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
16.7% a year for ten years
$28.58
today’s price
Its base case
19.8% a year for five years, then 11.9%
$27.43
4.0% below today’s price

Both are growth in the dividend a share, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record MGIC Investment Corporation’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Dividends
the four quarters to September 2026, from the 10-Q and 10-K filings

Yearly growth in the dividend. It usually slows as the company matures.

Today’s price implies the dividend a share growing 16.7% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

The model is a share’s own: no debt to take off and no shares to divide among.

Advanced inputs

Against MGIC Investment Corporation’s own cost of capital: risk-free 4.3% + beta 0.62 × equity premium 4.5% = 7.1% cost of equity; weighted, 7.1%.

Use 7.1%
Base case value per share $27.43 ten years discounted, and what follows
Current price $28.58 market price per share
Below today’s price 4.0% downside at the base case’s assumptions

How we got there$9.55 10 years of dividends+$17.89 terminal value=$27.43 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Insurance Specialty).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 9.09× 7.79× 8.44× 8% above 9.49× 4% below
P/FCF 8.44× 7.77× 8.04× 5% above 8.44× 0% above
P/B 1.23× 1.14× 1.15× 8% above 1.23× 0% below
EV/EBITDA — 5.80× 5.99× — 3.38× —
EV/Sales — 4.95× 4.76× — 3.90× —
P/E P/FCF P/B EV/EBITDA EV/Sales
6.45×8.57×10.70×12.83×10Y avg 8.04×2017201820192020202120222023202420252026

MTG trades at 8.44× P/FCF, against a 10-year average of 8.04× (range 5.85×–13.23×). That is dearer than 78% of the last 9 year-end readings; re-rating to the average implies $27.22 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.