Arch Capital Group Ltd (ACGL) is undervalued and American International Group Inc (AIG) is slightly overvalued.
Against our estimates of intrinsic value, ACGL trades at the wider discount: a margin of safety of +46%, against -9% for AIG.
Values as of the 22 Sept 2026 close.
Book value at 2.50x, the multiple a 19.9% return on equity justifies, blended with earnings, values the shares at $174.68; the price of $94.95 is 46% below that value.
Leak Score 100/100 on 3 of 12 signals
Book value at 0.79x, the multiple a 7.2% return on equity justifies, blended with earnings, values the shares at $68.76; the price of $75.18 is 9% above that value.
Leak Score 60/100 on 8 of 12 signals
| Metric | ACGL | AIG |
|---|---|---|
| Verdict | Undervalued | Slightly overvalued |
| Price | $94.95 | $75.18 |
| Intrinsic value | $174.68 | $68.76 |
| Margin of safety | +46% | -9% |
| Leak Score | 100/100 (3/12) | 60/100 (8/12) |
| Market cap | $32.4B | $39.3B |
| Revenue growth, 5 years | 18.4% | -9.3% |
| Operating margin | 25.1% | 16.9% |
| Net margin | 25.0% | 11.1% |
| Return on equity | 19.9% | 7.2% |
| Debt to equity | 0.18 | 0.22 |
| P/E | 7.4x | 13.8x |
| Forward P/E | 9.7x | 8.5x |
| P/B | 1.4x | 1.0x |
| Dividend yield | 0.2% | 2.6% |