MKL
Markel Corp
Price:  
1,997.85 
USD
Volume:  
46,696
United States | Insurance

Markel Fair Value

81.9 %
Upside

What is the fair value of Markel?

As of 2025-07-10, the Fair Value of Markel Corp (MKL) is 3,634.76 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 1,997.85 USD, the upside of Markel Corp is 81.9%.

Is Markel a good investment?

With the market price of 1,997.85 USD and our fair value calculation, Markel Corp (MKL) is a good investment. Investing in Markel stocks now will result in a potential gain of 81.9%.

1,997.85 USD
Stock Price
3,634.76 USD
Fair Price
FAIR VALUE CALCULATION

Markel Fair Value

Peter Lynch's formula is:

Markel Fair Value
= Earnings Growth Rate x TTM EPS
Markel Fair Value
= 25 x 145.39
Markel Fair Value
= 3,634.76

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
12-202012-202112-202212-202312-20245Y Avg
Net income8162,425-2141,996.062,747.021,554
YoY growth-54.4%197.2%-108.8%1032.7%37.6%220.9%

Markel Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Intact Financial Corp55,43212.9322.423.7%
Arch Capital Group Ltd32,94810251.24185.8%
W. R. Berkley Corp26,4604.6114.0963.6%
Cincinnati Financial Corp22,9319.3231.4557.8%
Loews Corp19,0766.3118.4230.2%
Fidelity National Financial Inc15,1384100.5982.5%
CNA Financial Corp12,0533.336.03-19.1%
Old Republic International Corp9,2543.264.3571.9%
First American Financial Corp6,1701.57.71-87.1%

Markel Fair Value - Key Data

Market Cap (mil)25,333
P/E13.7x
Forward P/E8.8x
EPS145.39
Avg earnings growth rate220.9%
TTM earnings1,844

Markel Fair Value - Formula's Origin

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.