Essent Group Ltd (ESNT) is undervalued and Fidelity National Financial Inc (FNF) is overvalued.
Against our estimates of intrinsic value, ESNT trades at the wider discount: a margin of safety of +32%, against -23% for FNF.
Values as of the 22 Sept 2026 close.
Book value at 1.48x, the multiple a 12.0% return on equity justifies, blended with earnings, values the shares at $96.77; the price of $65.70 is 32% below that value.
Leak Score 84/100 on 3 of 12 signals
Book value at 1.04x, the multiple a 10.1% return on equity justifies, blended with earnings, values the shares at $34.53; the price of $42.55 is 23% above that value.
Leak Score 27/100 on 3 of 12 signals
| Metric | ESNT | FNF |
|---|---|---|
| Verdict | Undervalued | Overvalued |
| Price | $65.70 | $42.55 |
| Intrinsic value | $96.77 | $34.53 |
| Margin of safety | +32% | -23% |
| Leak Score | 84/100 (3/12) | 27/100 (3/12) |
| Market cap | $5.9B | $11.4B |
| Revenue growth, 5 years | 5.7% | 6.0% |
| Operating margin | 65.8% | 12.9% |
| Net margin | 52.5% | 5.0% |
| Return on equity | 12.0% | 10.1% |
| Debt to equity | 0.09 | 0.64 |
| P/E | 9.2x | 14.8x |
| Forward P/E | 8.5x | 7.4x |
| P/B | 1.0x | 1.5x |
| Dividend yield | 2.1% | 4.8% |