Interesting comparable with ClearView. Not sure that we provide updated 'embedded value' figures at all, but they did initially in the prospectus at IPO in 31/12/2020 of $104m. Listed for $1.95 or $162m market cap, putting a premium on embedded value of 55% to account for growth.
Since then, we have increased net insurance premium revenue from $36m p.a. to roughly $110m (using H1 net premium just announced of ~$58m) in ~5 years. This is compounding growth over 20% p.a. and we are still in the growth zone and executing.
I don't know how to calculate the embedded value, but if its driven by net premium increases then it's surely at least doubled over the last 5 years. With the same premium to embedded value of 55% this puts market cap above $300m.
ClearView gets a discount to embedded value because it seems to be more complex, lower growth. So maybe that premium is excessive for NobleOak going forward. But there are no indications of slowing sales growth so...
Regal knows what's up.
NOL Price at posting:
$1.55 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)