Arch Capital Group Ltd (ACGL) is undervalued and Berkshire Hathaway Inc (BRK-B) is slightly undervalued.
Against our estimates of intrinsic value, ACGL trades at the wider discount: a margin of safety of +46%, against +10% for BRK-B.
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 1.63x, the multiple a 12.1% return on equity justifies, blended with earnings, values the shares at $562.02; the price of $503.49 is 10% below that value.
Leak Score 55/100 on 10 of 12 signals
| Metric | ACGL | BRK-B |
|---|---|---|
| Verdict | Undervalued | Slightly undervalued |
| Price | $94.95 | $503.49 |
| Intrinsic value | $174.68 | $562.02 |
| Margin of safety | +46% | +10% |
| Leak Score | 100/100 (3/12) | 55/100 (10/12) |
| Market cap | $32.4B | $968.8B |
| Revenue growth, 5 years | 18.4% | 8.6% |
| Operating margin | 25.1% | 16.3% |
| Net margin | 25.0% | 22.3% |
| Return on equity | 19.9% | 12.1% |
| Debt to equity | 0.18 | 0.17 |
| P/E | 7.4x | 12.7x |
| Forward P/E | 9.7x | 22.7x |
| P/B | 1.4x | 1.4x |
| Dividend yield | 0.2% | — |