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Unformatted text preview: INVESTMENT RISKS Low interest rates offer headwinds to NII across the industry Along with other P&C insurance providers, ACE is vulnerable to extreme catastrophes that threaten to crimp margins CONCLUSION Considering that the stock currently trades at 87% of BV, this would be an excellent addition to the TO± portfolio Based on analysis using DC±, a reasonable 12-month price target for ACE is $80.73. Pallav Ray The Tepper Opportunity ±und Carnegie Mellon University VALUATION RATIOS P/E (TTM): 8.36 Beta: 0.69 P/S (TTM): 1.29 P/B (MRQ): 0.87 FINANCIAL STRENGTH LT Debt to Equity: 13.93 Total Debt to Equity: 19.74 Interest Coverage: 21.57 PROFITABILITY RATIOS EBITD Margin (TTM): 34.84 Op. Margin (TTM): 18.46 Pre-Tax Margin (TTM): 18.67 Net ProFt M'gin (TTM): 15.54 MGMT. EFFECTIVENESS ROA (TTM): 3.00 ROE (TTM): 11.17 Source: Reuters ACE Limited (NYSE: ACE) Current Date: 9/6/2011 Current Price: $61.43 12 mo. PT: $80.73...
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This note was uploaded on 02/05/2012 for the course FINANCE 101 taught by Professor George during the Spring '11 term at University of Phoenix.
- Spring '11