Essent Group Ltd (ESNT) is undervalued and MGIC Investment Corp (MTG) is undervalued.
Against our estimates of intrinsic value, MTG trades at the wider discount: a margin of safety of +35%, against +32% for ESNT.
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 1.89x, the multiple a 13.9% return on equity justifies, blended with earnings, values the shares at $45.37; the price of $29.29 is 35% below that value.
Leak Score 100/100 on 3 of 12 signals
| Metric | ESNT | MTG |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $65.70 | $29.29 |
| Intrinsic value | $96.77 | $45.37 |
| Margin of safety | +32% | +35% |
| Leak Score | 84/100 (3/12) | 100/100 (3/12) |
| Market cap | $5.9B | $6.0B |
| Revenue growth, 5 years | 5.7% | 0.2% |
| Operating margin | 65.8% | 77.0% |
| Net margin | 52.5% | 59.2% |
| Return on equity | 12.0% | 13.9% |
| Debt to equity | 0.09 | 0.13 |
| P/E | 9.2x | 9.2x |
| Forward P/E | 8.5x | 8.6x |
| P/B | 1.0x | 1.2x |
| Dividend yield | 2.1% | 2.4% |