ARGO Fair Value
What is the fair value of ARGO?
As of 2025-05-11, the Fair Value of Argo Group International Holdings Ltd (ARGO) is -26.93 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 29.99 USD, the upside of Argo Group International Holdings Ltd is -189.8%.
Is ARGO a good investment?
With the market price of 29.99 USD and our fair value calculation, Argo Group International Holdings Ltd (ARGO) is not a good investment. Investing in ARGO stocks now will result in a potential loss of 189.8%.
Note: valuation result may not be accurate due to the company's negative EPS.
Peter Lynch's formula is:
The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.
| Historical Earnings | ||||||
| 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 5Y Avg | |
| Net income | 57 | -14.1 | -54.1 | 6.7 | -175.2 | -36 |
| YoY growth | 13.3% | -124.7% | -283.7% | 112.4% | -2714.9% | -599.5% |
| Market Cap (mil) | EPS | Fair Value | Upside | ||
| a | |||||
Argo Group International Holdings Ltd | 1,056 | -5.4 | -26.93 | -189.8% | |
| Rli Corp | 6,848 | 3.1 | 76.58 | 2.6% | |
| Assured Guaranty Ltd | 4,363 | 7.5 | 188.3 | 115.4% | |
| Stewart Information Services Corp | 1,780 | 2.6 | 65.6 | 2.9% | |
| Employers Holdings Inc | 1,204 | 4.2 | 51.71 | 4.2% | |
| ProAssurance Corp | 1,170 | 0.8 | 4.14 | -81.9% | |
| Tiptree Inc | 801 | 1.3 | 33.31 | 55.9% | |
| Universal Insurance Holdings Inc | 733 | 2.4 | 59.16 | 127.5% | |
| United Fire Group Inc | 709 | 2.4 | 12.2 | -56.3% | |
| Donegal Group Inc | 703 | 2 | 49.18 | 149.4% | |
| Market Cap (mil) | 1,056 |
| P/E | - |
| Forward P/E | - |
| EPS | -5.39 |
| Avg earnings growth rate | -599.5% |
| TTM earnings | -190 |
Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.
Therefore, his formula to determine a company's fair value is:
Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG
PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.