MGIC Investment Corp (MTG) is undervalued and NMI Holdings Inc (NMIH) is undervalued.
Against our estimates of intrinsic value, NMIH trades at the wider discount: a margin of safety of +45%, against +35% for MTG.
Values as of the 22 Sept 2026 close.
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
Book value at 2.31x, the multiple a 15.4% return on equity justifies, blended with earnings, values the shares at $77.08; the price of $42.42 is 45% below that value.
Leak Score 100/100 on 3 of 12 signals
| Metric | MTG | NMIH |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $29.29 | $42.42 |
| Intrinsic value | $45.37 | $77.08 |
| Margin of safety | +35% | +45% |
| Leak Score | 100/100 (3/12) | 100/100 (3/12) |
| Market cap | $6.0B | $3.2B |
| Revenue growth, 5 years | 0.2% | 10.3% |
| Operating margin | 77.0% | 73.2% |
| Net margin | 59.2% | 54.1% |
| Return on equity | 13.9% | 15.4% |
| Debt to equity | 0.13 | 0.15 |
| P/E | 9.2x | 8.3x |
| Forward P/E | 8.6x | 7.7x |
| P/B | 1.2x | 1.2x |
| Dividend yield | 2.4% | — |