Enact Holdings, Inc.

ACT

Financial ServicesInsurance - SpecialtyNASDAQ

$42.86

Market Cap: $5.98B

Enact Holdings, Inc. (ACT) Valuation Summary

Updated Apr 27, 2026 22:21

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$55.30 – $239.09	$88.85	+102.3%
Growth Exit 10Y	$62.14 – $252.07	$97.25	+121.4%
EBITDA Exit 5Y	$30.53 – $93.44	$59.25	+34.9%
EBITDA Exit 10Y	$41.65 – $107.67	$69.51	+58.2%
▸ Trading Multiples
P/E	$39.01 – $101.60	$41.65	-5.2%
EV/EBITDA	$39.70 – $44.82	$42.46	-3.4%
EV/Revenue	$7.35 – $43.46	$40.80	-7.1%
▸ PEG
PEG Fair Value	$43.59 – $43.59	$43.59	-0.8%
▸ Earnings Power Value
Earnings Power Value	$47.78 – $73.40	$57.93	+31.9%
▸ Dividend Discount
Dividend Discount	$10.70 – $27.43	$14.96	-65.9%

Valuation History

DCF Analysis

Fair Value

$88.85

Market Price

$42.86

Upside / Downside

+107.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Enact Holdings, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.3% to 2.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 14, DPO 30, DIO 60). At a 7.2% WACC with mid-year discounting, the terminal value (82% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $88.85 per share, suggesting ACT is undervalued by 107.3% at the current price of $42.86.

FCFF Present Value Calculation

WACC

7.22%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	901	921	932	955	977	1,002
(−) Net Interest	56	57	58	60	61	62
(+) D&A	138	80	159	240	324	332
EBITDA	1,095	1,058	1,150	1,254	1,362	1,396

(−) Tax	194	199	201	206	211	216
(−) CapEx	393	402	407	417	426	437
(−) ΔWC	23	2	1	2	2	2
Free Cash Flow (FCFF)	484	456	540	630	723	741

Terminal Value						15,693
WACC / Discount Rate	7.2%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	468	411	454	494	528	11,075

Enterprise Value	13,429
Projection Period	2,354	17.5%
Terminal Value	11,075	82.5%

(−) Current Net Debt	162

Equity Value	13,267
(/) Outstanding Shares	149

Fair Price	$88.85

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.2%	$119	$135	$157	$189	$239
6.2%	$93	$102	$114	$129	$150
7.2%	$76	$82	$89	$98	$109
8.2%	$64	$68	$73	$78	$85
9.2%	$55	$58	$61	$65	$70

Current price: $42.86. Green = undervalued, Red = overvalued.

Fair Value

$97.25

Market Price

$42.86

Upside / Downside

+126.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Enact Holdings, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.3% to 2.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 14, DPO 30, DIO 60). At a 7.2% WACC with mid-year discounting, the terminal value (67% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $97.25 per share, suggesting ACT is undervalued by 126.9% at the current price of $42.86.

FCFF Present Value Calculation

WACC

7.22%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	901	921	932	955	977	1,001	1,027	1,055	1,084	1,116	1,144
(−) Net Interest	56	57	58	60	61	62	64	66	68	70	71
(+) D&A	138	80	159	240	324	409	418	427	438	449	460
EBITDA	1,095	1,058	1,150	1,254	1,362	1,473	1,509	1,548	1,590	1,634	1,675

(−) Tax	194	199	201	206	211	216	222	228	234	241	247
(−) CapEx	393	402	407	417	426	437	448	460	473	487	499
(−) ΔWC	23	2	1	2	2	2	2	2	2	2	2
Free Cash Flow (FCFF)	484	456	540	630	723	818	837	858	880	904	927

Terminal Value											19,636
WACC / Discount Rate	7.2%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	468	411	454	494	528	557	532	508	487	466	9,779

Enterprise Value	14,684
Projection Period	4,905	33.4%
Terminal Value	9,779	66.6%

(−) Current Net Debt	162

Equity Value	14,522
(/) Outstanding Shares	149

Fair Price	$97.25

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.2%	$135	$151	$172	$203	$252
6.2%	$105	$114	$125	$139	$158
7.2%	$86	$91	$97	$105	$115
8.2%	$72	$76	$80	$84	$90
9.2%	$62	$64	$67	$70	$74

Current price: $42.86. Green = undervalued, Red = overvalued.

Fair Value

$59.28

Market Price

$42.86

Upside / Downside

+38.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Enact Holdings, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.3% to 2.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 14, DPO 30, DIO 60). At a 7.2% WACC with mid-year discounting, the terminal value (74% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 6.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $59.25 per share, suggesting ACT is undervalued by 38.2% at the current price of $42.86.

FCFF Present Value Calculation

WACC

7.22%

3% – 20%

EV/EBITDA Exit Multiple

6.76x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	901	921	932	955	977	1,002
(−) Net Interest	56	57	58	60	61	62
(+) D&A	138	80	159	240	324	332
EBITDA	1,095	1,058	1,150	1,254	1,362	1,396

(−) Tax	194	199	201	206	211	—
(−) CapEx	393	402	407	417	426	—
(−) ΔWC	23	2	1	2	2	—
Free Cash Flow (FCF)	484	456	540	630	723	—

Peers' EBITDA Multiple						6.8x
Terminal Value						9,436
WACC / Discount Rate	7.22%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	468	411	454	494	528	6,659

Enterprise Value	9,013
Projection Period	2,354	26.1%
Terminal Value	6,659	73.9%

(−) Current Net Debt	162
Equity Value	8,851
(÷) Outstanding Shares	149M
Fair Price	$59	+38.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	2.8x	4.8x	6.8x	8.8x	10.8x
5.2%	$35	$50	$64	$79	$93
6.2%	$34	$48	$62	$76	$89
7.2%	$33	$46	$59	$72	$86
8.2%	$32	$44	$57	$69	$82
9.2%	$31	$43	$55	$67	$79

Current price: $42.86. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$69.54

Market Price

$42.86

Upside / Downside

+62.2%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Enact Holdings, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.3% to 2.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 14, DPO 30, DIO 60). At a 7.2% WACC with mid-year discounting, the terminal value (53% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 6.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $69.51 per share, suggesting ACT is undervalued by 62.2% at the current price of $42.86.

FCFF Present Value Calculation

WACC

7.22%

3% – 20%

EV/EBITDA Exit Multiple

6.76x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	901	921	932	955	977	1,001	1,027	1,055	1,084	1,116	1,144
(−) Net Interest	56	57	58	60	61	62	64	66	68	70	71
(+) D&A	138	80	159	240	324	409	418	427	438	449	460
EBITDA	1,095	1,058	1,150	1,254	1,362	1,473	1,509	1,548	1,590	1,634	1,675

(−) Tax	194	199	201	206	211	216	222	228	234	241	—
(−) CapEx	393	402	407	417	426	437	448	460	473	487	—
(−) ΔWC	23	2	1	2	2	2	2	2	2	2	—
Free Cash Flow (FCF)	484	456	540	630	723	818	837	858	880	904	—

Peers' EBITDA Multiple											6.8x
Terminal Value											11,325
WACC / Discount Rate	7.22%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	468	411	454	494	528	557	532	508	487	466	5,640

Enterprise Value	10,545
Projection Period	4,905	46.5%
Terminal Value	5,640	53.5%

(−) Current Net Debt	162
Equity Value	10,383
(÷) Outstanding Shares	149M
Fair Price	$70	+62.2%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	2.8x	4.8x	6.8x	8.8x	10.8x
5.2%	$54	$67	$81	$94	$108
6.2%	$50	$63	$75	$87	$99
7.2%	$47	$58	$70	$81	$92
8.2%	$44	$54	$65	$75	$85
9.2%	$42	$51	$60	$70	$79

Current price: $42.86. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$41.65

Market Price

$42.86

Upside / Downside

-2.8%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Enact Holdings, Inc. (ACT) has a fair value of $41.65 based on 8 comparable companies in the Insurance - Specialty industry.

P/E Valuation — Insurance - Specialty

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Enact Holdings, Inc.ACT	6,400	9.5x	9.6x
First American Financial CorporationFAF	7,102	11.6x	43.7x
MGIC Investment CorporationMTG	6,290	9.2x	10.2x
Essent Group Ltd.ESNT	6,046	9.3x	9.3x
Radian Group Inc.RDN	4,874	8.6x	9.0x
Assured Guaranty Ltd.AGO	3,723	8.2x	11.9x
NMI Holdings, Inc.NMIH	3,167	8.5x	9.1x
Employers Holdings, Inc.EIG	994	94.5x	9.1x
Tiptree Inc.TIPT	648	22.5x	—
Industry Median		9.3x	9.3x
(*) Profit after tax		674	665
Equity Value		6,259	6,180
(/) Outstanding shares		149	149
Fair Price		$42	$41

Selected Fair Value (avg of trailing + forward)

$41.65

-2.8%

Fair Value

$42.46

Market Price

$42.86

Upside / Downside

-0.9%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Enact Holdings, Inc. (ACT) has a fair value of $42.46 based on 7 comparable companies in the Insurance - Specialty industry.

EV/EBITDA Valuation — Insurance - Specialty

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Enact Holdings, Inc.ACT	6,400	7.2x	7.3x
First American Financial CorporationFAF	7,102	6.4x	7.8x
MGIC Investment CorporationMTG	6,290	6.8x	6.8x
Essent Group Ltd.ESNT	6,046	7.5x	7.7x
Radian Group Inc.RDN	4,874	6.9x	6.7x
Assured Guaranty Ltd.AGO	3,723	6.7x	6.1x
NMI Holdings, Inc.NMIH	3,167	6.7x	8.3x
Employers Holdings, Inc.EIG	994	69.9x	69.0x
Industry Median		6.8x	7.7x
(*) EBITDA		909	897
= Enterprise Value		6,140	6,863
(-) Net Debt		162	162
Equity Value		5,978	6,701
(/) Outstanding shares		149	149
Fair Price		$40	$45

Selected Fair Value (avg of trailing + forward)

$42.46

-0.9%

Fair Value

$40.80

Market Price

$42.86

Upside / Downside

-4.8%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Enact Holdings, Inc. (ACT) has a fair value of $40.80 based on 7 comparable companies in the Insurance - Specialty industry.

EV/Revenue Valuation — Insurance - Specialty

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Enact Holdings, Inc.ACT	6,400	5.3x	5.4x
First American Financial CorporationFAF	7,102	1.0x	1.3x
MGIC Investment CorporationMTG	6,290	5.4x	5.4x
Essent Group Ltd.ESNT	6,046	5.1x	5.2x
Radian Group Inc.RDN	4,874	4.8x	4.7x
Assured Guaranty Ltd.AGO	3,723	6.4x	5.8x
NMI Holdings, Inc.NMIH	3,167	5.0x	6.3x
Employers Holdings, Inc.EIG	994	1.0x	1.0x
Industry Median		5.0x	5.2x
(*) Revenue		1,230	1,214
= Enterprise Value		6,174	6,336
(-) Net Debt		162	162
Equity Value		6,012	6,174
(/) Outstanding shares		149	149
Fair Price		$40	$41

Selected Fair Value (avg of trailing + forward)

$40.80

-4.8%

PEG Fair Value

Fair Value

$43.59

Market Price

$42.86

Upside / Downside

+1.7%

Verdict

Undervalued

Using the PEG framework with historical EPS growth of 9.6% plus 1.9% dividend yield, the company has a fair value of $43.59 based on TTM EPS (FY2025) of $4.52. The current PEG ratio is 1.01.

PEG Ratio

1.01Fair Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 9.7 ÷ (7.7% + 1.9%) = 1.01

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Slow GrowerPEG less reliable

PEG tends to undervalue slow growers — consider dividend yield and asset value instead.

Fair Value Calculation

EPS Growth RateHistorical	7.7%
Dividend Yield	+1.9%
Adjusted Growth (clamped 8–25%)	9.6%
Fair P/E	9.6x
TTM EPS (FY2025)	$4.52
Fair Value	$43.59

Growth Analysis

Forward Growth

No analyst estimates available.

Historical GrowthActive

Year	Net Income	EPS	YoY
FY2021	$546.7M	$3.36	—
FY2022	$704.2M	$4.31	+28.3%
FY2023	$665.5M	$4.11	-4.6%
FY2024	$688.1M	$4.37	+6.3%
FY2025	$674.2M	$4.52	+3.4%

4Y Historical EPS CAGR: 7.7%

Earnings Power Value

Fair Value

$57.93

Market Price

$42.86

Upside / Downside

+35.2%

Verdict

Undervalued

Using the Earnings Power Value framework with a WACC of 7.2% and normalized earnings of $636.2M, the company has a fair value of $57.93 per share. The EPV range is $47.78 – $73.40 based on WACC sensitivity (5.7% – 8.7%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	636	636	636
(/) WACC	8.7%	7.2%	5.7%
Enterprise Value	7,296	8,811	11,122
(-) Net debt	162	162	162
Equity Value	7,134	8,649	10,960
(/) Outstanding shares	149	149	149
Fair Price	$47.78	$57.93	$73.40

Dividend Discount Model

Fair Value

$14.96

Market Price

$42.86

Upside / Downside

-65.1%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 7.5% and projected dividend growth of 0.0%, the fair value is $14.96 per share. The DDM range is $10.70 – $27.43 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$0.81

Dividend Yield

1.95%

Payout Ratio

17.9%

Dividend Coverage

5.58x

FCF Payout Ratio16.7%

DPS CAGR (4Y)-9.9%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$0.81	17.9%	+14.1%
2024	$0.71	16.2%	-46.1%
2023	$1.32	32.0%	-14.3%
2022	$1.54	35.6%	+24.9%
2021	$1.23	36.6%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$0.81	0.0%	0.9306	$0.75
2027	$0.81	0.0%	0.8661	$0.70
2028	$0.81	0.0%	0.8060	$0.65
2029	$0.81	0.0%	0.7501	$0.61
2030	$0.81	0.0%	0.6980	$0.56
Terminal Value	$0.83 DPS	2.5%		$11.69

PV of Projected Dividends$3.28

PV of Terminal Value$11.69

Fair Value per Share$14.96

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	0.0%	0.0%	0.0%	1.0%	2.0%
5.5%	$25	$25	$25	$26	$27
6.5%	$19	$19	$19	$20	$21
7.5%	$15	$15	$15	$16	$16
8.5%	$12	$12	$12	$13	$14
9.5%	$11	$11	$11	$11	$12

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Enact Holdings, Inc. (ACT) Valuation Summary

Updated Apr 27, 2026 22:21

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$55.30 – $239.09	$88.85	+102.3%
Growth Exit 10Y	$62.14 – $252.07	$97.25	+121.4%
EBITDA Exit 5Y	$30.53 – $93.44	$59.25	+34.9%
EBITDA Exit 10Y	$41.65 – $107.67	$69.51	+58.2%
▸ Trading Multiples
P/E	$39.01 – $101.60	$41.65	-5.2%
EV/EBITDA	$39.70 – $44.82	$42.46	-3.4%
EV/Revenue	$7.35 – $43.46	$40.80	-7.1%
▸ PEG
PEG Fair Value	$43.59 – $43.59	$43.59	-0.8%
▸ Earnings Power Value
Earnings Power Value	$47.78 – $73.40	$57.93	+31.9%
▸ Dividend Discount
Dividend Discount	$10.70 – $27.43	$14.96	-65.9%

Valuation History

DCF Analysis

Fair Value

$88.85

Market Price

$42.86

Upside / Downside

+107.3%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

7.22%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	901	921	932	955	977	1,002
(−) Net Interest	56	57	58	60	61	62
(+) D&A	138	80	159	240	324	332
EBITDA	1,095	1,058	1,150	1,254	1,362	1,396

(−) Tax	194	199	201	206	211	216
(−) CapEx	393	402	407	417	426	437
(−) ΔWC	23	2	1	2	2	2
Free Cash Flow (FCFF)	484	456	540	630	723	741

Terminal Value						15,693
WACC / Discount Rate	7.2%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	468	411	454	494	528	11,075

Enterprise Value	13,429
Projection Period	2,354	17.5%
Terminal Value	11,075	82.5%

(−) Current Net Debt	162

Equity Value	13,267
(/) Outstanding Shares	149

Fair Price	$88.85

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.2%	$119	$135	$157	$189	$239
6.2%	$93	$102	$114	$129	$150
7.2%	$76	$82	$89	$98	$109
8.2%	$64	$68	$73	$78	$85
9.2%	$55	$58	$61	$65	$70

Current price: $42.86. Green = undervalued, Red = overvalued.

Fair Value

$97.25

Market Price

$42.86

Upside / Downside

+126.9%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

7.22%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	901	921	932	955	977	1,001	1,027	1,055	1,084	1,116	1,144
(−) Net Interest	56	57	58	60	61	62	64	66	68	70	71
(+) D&A	138	80	159	240	324	409	418	427	438	449	460
EBITDA	1,095	1,058	1,150	1,254	1,362	1,473	1,509	1,548	1,590	1,634	1,675

(−) Tax	194	199	201	206	211	216	222	228	234	241	247
(−) CapEx	393	402	407	417	426	437	448	460	473	487	499
(−) ΔWC	23	2	1	2	2	2	2	2	2	2	2
Free Cash Flow (FCFF)	484	456	540	630	723	818	837	858	880	904	927

Terminal Value											19,636
WACC / Discount Rate	7.2%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	468	411	454	494	528	557	532	508	487	466	9,779

Enterprise Value	14,684
Projection Period	4,905	33.4%
Terminal Value	9,779	66.6%

(−) Current Net Debt	162

Equity Value	14,522
(/) Outstanding Shares	149

Fair Price	$97.25

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
5.2%	$135	$151	$172	$203	$252
6.2%	$105	$114	$125	$139	$158
7.2%	$86	$91	$97	$105	$115
8.2%	$72	$76	$80	$84	$90
9.2%	$62	$64	$67	$70	$74

Current price: $42.86. Green = undervalued, Red = overvalued.

Fair Value

$59.28

Market Price

$42.86

Upside / Downside

+38.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Enact Holdings, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.3% to 2.4% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 14, DPO 30, DIO 60). At a 7.2% WACC with mid-year discounting, the terminal value (74% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 6.8x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $59.25 per share, suggesting ACT is undervalued by 38.2% at the current price of $42.86.

FCFF Present Value Calculation

WACC

7.22%

3% – 20%

EV/EBITDA Exit Multiple

6.76x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	901	921	932	955	977	1,002
(−) Net Interest	56	57	58	60	61	62
(+) D&A	138	80	159	240	324	332
EBITDA	1,095	1,058	1,150	1,254	1,362	1,396

(−) Tax	194	199	201	206	211	—
(−) CapEx	393	402	407	417	426	—
(−) ΔWC	23	2	1	2	2	—
Free Cash Flow (FCF)	484	456	540	630	723	—

Peers' EBITDA Multiple						6.8x
Terminal Value						9,436
WACC / Discount Rate	7.22%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	468	411	454	494	528	6,659

Enterprise Value	9,013
Projection Period	2,354	26.1%
Terminal Value	6,659	73.9%

(−) Current Net Debt	162
Equity Value	8,851
(÷) Outstanding Shares	149M
Fair Price	$59	+38.3%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	2.8x	4.8x	6.8x	8.8x	10.8x
5.2%	$35	$50	$64	$79	$93
6.2%	$34	$48	$62	$76	$89
7.2%	$33	$46	$59	$72	$86
8.2%	$32	$44	$57	$69	$82
9.2%	$31	$43	$55	$67	$79

Current price: $42.86. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$69.54

Market Price

$42.86

Upside / Downside

+62.2%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Enact Holdings, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.3% to 2.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 14, DPO 30, DIO 60). At a 7.2% WACC with mid-year discounting, the terminal value (53% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 6.8x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $69.51 per share, suggesting ACT is undervalued by 62.2% at the current price of $42.86.

FCFF Present Value Calculation

WACC

7.22%

3% – 20%

EV/EBITDA Exit Multiple

6.76x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	901	921	932	955	977	1,001	1,027	1,055	1,084	1,116	1,144
(−) Net Interest	56	57	58	60	61	62	64	66	68	70	71
(+) D&A	138	80	159	240	324	409	418	427	438	449	460
EBITDA	1,095	1,058	1,150	1,254	1,362	1,473	1,509	1,548	1,590	1,634	1,675

(−) Tax	194	199	201	206	211	216	222	228	234	241	—
(−) CapEx	393	402	407	417	426	437	448	460	473	487	—
(−) ΔWC	23	2	1	2	2	2	2	2	2	2	—
Free Cash Flow (FCF)	484	456	540	630	723	818	837	858	880	904	—

Peers' EBITDA Multiple											6.8x
Terminal Value											11,325
WACC / Discount Rate	7.22%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	468	411	454	494	528	557	532	508	487	466	5,640

Enterprise Value	10,545
Projection Period	4,905	46.5%
Terminal Value	5,640	53.5%

(−) Current Net Debt	162
Equity Value	10,383
(÷) Outstanding Shares	149M
Fair Price	$70	+62.2%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	2.8x	4.8x	6.8x	8.8x	10.8x
5.2%	$54	$67	$81	$94	$108
6.2%	$50	$63	$75	$87	$99
7.2%	$47	$58	$70	$81	$92
8.2%	$44	$54	$65	$75	$85
9.2%	$42	$51	$60	$70	$79

Current price: $42.86. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$41.65

Market Price

$42.86

Upside / Downside

-2.8%

Verdict

Overvalued

P/E Valuation — Insurance - Specialty

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Enact Holdings, Inc.ACT	6,400	9.5x	9.6x
First American Financial CorporationFAF	7,102	11.6x	43.7x
MGIC Investment CorporationMTG	6,290	9.2x	10.2x
Essent Group Ltd.ESNT	6,046	9.3x	9.3x
Radian Group Inc.RDN	4,874	8.6x	9.0x
Assured Guaranty Ltd.AGO	3,723	8.2x	11.9x
NMI Holdings, Inc.NMIH	3,167	8.5x	9.1x
Employers Holdings, Inc.EIG	994	94.5x	9.1x
Tiptree Inc.TIPT	648	22.5x	—
Industry Median		9.3x	9.3x
(*) Profit after tax		674	665
Equity Value		6,259	6,180
(/) Outstanding shares		149	149
Fair Price		$42	$41

Selected Fair Value (avg of trailing + forward)

$41.65

-2.8%

Fair Value

$42.46

Market Price

$42.86

Upside / Downside

-0.9%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Enact Holdings, Inc. (ACT) has a fair value of $42.46 based on 7 comparable companies in the Insurance - Specialty industry.

EV/EBITDA Valuation — Insurance - Specialty

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Enact Holdings, Inc.ACT	6,400	7.2x	7.3x
First American Financial CorporationFAF	7,102	6.4x	7.8x
MGIC Investment CorporationMTG	6,290	6.8x	6.8x
Essent Group Ltd.ESNT	6,046	7.5x	7.7x
Radian Group Inc.RDN	4,874	6.9x	6.7x
Assured Guaranty Ltd.AGO	3,723	6.7x	6.1x
NMI Holdings, Inc.NMIH	3,167	6.7x	8.3x
Employers Holdings, Inc.EIG	994	69.9x	69.0x
Industry Median		6.8x	7.7x
(*) EBITDA		909	897
= Enterprise Value		6,140	6,863
(-) Net Debt		162	162
Equity Value		5,978	6,701
(/) Outstanding shares		149	149
Fair Price		$40	$45

Selected Fair Value (avg of trailing + forward)

$42.46

-0.9%

Fair Value

$40.80

Market Price

$42.86

Upside / Downside

-4.8%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Enact Holdings, Inc. (ACT) has a fair value of $40.80 based on 7 comparable companies in the Insurance - Specialty industry.

EV/Revenue Valuation — Insurance - Specialty

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Enact Holdings, Inc.ACT	6,400	5.3x	5.4x
First American Financial CorporationFAF	7,102	1.0x	1.3x
MGIC Investment CorporationMTG	6,290	5.4x	5.4x
Essent Group Ltd.ESNT	6,046	5.1x	5.2x
Radian Group Inc.RDN	4,874	4.8x	4.7x
Assured Guaranty Ltd.AGO	3,723	6.4x	5.8x
NMI Holdings, Inc.NMIH	3,167	5.0x	6.3x
Employers Holdings, Inc.EIG	994	1.0x	1.0x
Industry Median		5.0x	5.2x
(*) Revenue		1,230	1,214
= Enterprise Value		6,174	6,336
(-) Net Debt		162	162
Equity Value		6,012	6,174
(/) Outstanding shares		149	149
Fair Price		$40	$41

Selected Fair Value (avg of trailing + forward)

$40.80

-4.8%

PEG Fair Value

Fair Value

$43.59

Market Price

$42.86

Upside / Downside

+1.7%

Verdict

Undervalued

Using the PEG framework with historical EPS growth of 9.6% plus 1.9% dividend yield, the company has a fair value of $43.59 based on TTM EPS (FY2025) of $4.52. The current PEG ratio is 1.01.

PEG Ratio

1.01Fair Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 9.7 ÷ (7.7% + 1.9%) = 1.01

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Slow GrowerPEG less reliable

PEG tends to undervalue slow growers — consider dividend yield and asset value instead.

Fair Value Calculation

EPS Growth RateHistorical	7.7%
Dividend Yield	+1.9%
Adjusted Growth (clamped 8–25%)	9.6%
Fair P/E	9.6x
TTM EPS (FY2025)	$4.52
Fair Value	$43.59

Growth Analysis

Forward Growth

No analyst estimates available.

Historical GrowthActive

Year	Net Income	EPS	YoY
FY2021	$546.7M	$3.36	—
FY2022	$704.2M	$4.31	+28.3%
FY2023	$665.5M	$4.11	-4.6%
FY2024	$688.1M	$4.37	+6.3%
FY2025	$674.2M	$4.52	+3.4%

4Y Historical EPS CAGR: 7.7%

Earnings Power Value

Fair Value

$57.93

Market Price

$42.86

Upside / Downside

+35.2%

Verdict

Undervalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	636	636	636
(/) WACC	8.7%	7.2%	5.7%
Enterprise Value	7,296	8,811	11,122
(-) Net debt	162	162	162
Equity Value	7,134	8,649	10,960
(/) Outstanding shares	149	149	149
Fair Price	$47.78	$57.93	$73.40

Dividend Discount Model

Fair Value

$14.96

Market Price

$42.86

Upside / Downside

-65.1%

Verdict

Overvalued

Dividend Profile

Current DPS

$0.81

Dividend Yield

1.95%

Payout Ratio

17.9%

Dividend Coverage

5.58x

FCF Payout Ratio16.7%

DPS CAGR (4Y)-9.9%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$0.81	17.9%	+14.1%
2024	$0.71	16.2%	-46.1%
2023	$1.32	32.0%	-14.3%
2022	$1.54	35.6%	+24.9%
2021	$1.23	36.6%	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$0.81	0.0%	0.9306	$0.75
2027	$0.81	0.0%	0.8661	$0.70
2028	$0.81	0.0%	0.8060	$0.65
2029	$0.81	0.0%	0.7501	$0.61
2030	$0.81	0.0%	0.6980	$0.56
Terminal Value	$0.83 DPS	2.5%		$11.69

PV of Projected Dividends$3.28

PV of Terminal Value$11.69

Fair Value per Share$14.96

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	0.0%	0.0%	0.0%	1.0%	2.0%
5.5%	$25	$25	$25	$26	$27
6.5%	$19	$19	$19	$20	$21
7.5%	$15	$15	$15	$16	$16
8.5%	$12	$12	$12	$13	$14
9.5%	$11	$11	$11	$11	$12