Is Old Republic International Corporation (NYSE:ORI) Valued Fairly At Current Levels?

Taking a look at Old Republic International Corporation (NYSE:ORI)’s valuation level, we can focus on several ratios. One of the quickest ways to determine the projected value of a stock is the price to earnings growth, or PEG ratio.

This formula was popularized by Peter Lynch and according to his calculations, a stock which is fairly valued will have a price to earnings ratio equal to its rate of growth. Simply put, a stock with a PEG ratio of 1 would be considered fairly valued. A stock with a ratio of under 1.0 would be undervalued and a stock with a PEG over 1.0 would be considered over valued. Old Republic International Corporation currently has a PEG ratio of 0.79.As many investors probably already know, there is no one way to select winning stocks. There are plenty of different theories and ideas out there, and it may become overwhelming to look at all of them. Individual investors who manage their own money may have to dedicate an ample amount of time to find a strategy that works for them. Understanding portfolio diversification, personal risk tolerance, and time horizon may be a good place for the investor to start. Because there is no guarantee that past performance will indicate future results, investors may have to be willing to come at the market from a few different angles. 

Most importantly investors want to know where the stock is headed from here. In order to get a sense of Wall Street sentiment, we can look to equity research analyst estimates. On a one to five ratings scale where 1.0 indicates a Strong Buy, 2.0 indicates a Buy, 3.0 a Hold, 4.0 a Sell and 5.0 a Stong Sell. Old Republic International Corporation (NYSE:ORI) currently has an average analyst recommendation of 2.00 according to analysts. This is the average number based on the total brokerage firms taken into consideration by Beta Systems Research. The same analysts have a future one-year price target of $23.00 on the shares.

Technical Indicators
In addition to sell-side rational, we can also take a look at some technical indicators. The stock is currently 2.31% away from its 50-day simple moving average and 4.15% away from the 200 day average. Based on a recent trade, the shares are -3.90% away from the 52-week high and 13.71% from the 52-week low. The RSI (Relative Strength Index), which shows price strength by comparing upward and downward close to close movements. An RSI approaching 70 is typically deemed to be nearing overbought status and could be ripe for a pullback. Alternatively an RSI nearing 30 indicates that the stock could be getting oversold and might be considered undervalued. The RSI for Old Republic International Corporation(NYSE:ORI) currently stands at 52.37.

Performance
Old Republic International Corporation has posted trailing 12 months earnings of $2.79 per share. The company has seen a change of 32.20% earnings per share this year. Analysts are predicting 2.90% for the company next year. The firm is yielding 4.00% return on assets and 15.40% return on equity.

Doing standard fundamental stock analysis is fairly straightforward. These days, investors have easy access to large amounts of available data. The biggest problem for the average investor may be dedicating the time to actually doing the research. One goal of studying the fundamentals is to establish the true value of a stock compared to how it is currently trading in the marketplace. Many investors believe that identifying quality stocks should be a cornerstone of portfolio construction. Obtaining as much knowledge as possible about a stock can help make the buying decisions a little easier. Some investors may trust other people or products to do the required research, but others may wish to roll up the sleeves and do all the analysis themselves.