On the four Ms, Everest Group earns 77 for management and 68 for moat. The management score rests on a return on invested capital of 8.1% and a gross margin of 20.5% — figures that describe a business earning a respectable return on what it employs. Debt sits at 0.23x equity.
The valuation runs on assumptions chosen to understate rather than flatter. Growth is modelled at 12.5% a year, below the 13.0% actually measured over the last decade — the model caps growth rather than extrapolating a good run forwards. The exit multiple assumed is 21.8x. That produces an intrinsic value of $823.98, a 10-CAP price of $513.36 and a payback time price of $724.37, with the value zone set at the highest of the three, $724.37. Today's price of $368.72 sits inside that zone.
A business scoring this well, trading inside its value zone, is the combination the framework exists to find — which is also the reason to check why the market disagrees. A margin of safety score of 100 describes the cushion, not the certainty.
| Price | $368.72 |
| Market cap | $14.6B |
| P/E ratio | 7.9x |
| Return on invested capital | 8.1% |
| Gross margin | 20.5% |
| Debt to equity | 0.23x |
| Free cash flow yield | 24.2% |
| Growth rate used | 12.5% |
| Growth rate measured | 13.0% |
| Exit multiple assumed | 21.8x |
| Company | Moat | Buy price |
| Unum Group (UNM) | 32 | $45.88 |
| Renaissancere Holdings Ltd (RNR) | 82 | $1,370.06 |
| Assurant (AIZ) | 89 | $360.89 |
| Globe Life (GL) | 57 | $160.42 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Everest Group rather than accepting ours.