Based on Clarity's multi-model valuation engine, ARCH CAPITAL GROUP LTD. (ACGL) has an estimated fair value of $157.20 per share, compared to its current market price of $92.30. The stock is currently trading 70.3% below Clarity's fair value estimate, resulting in a verdict of SIGNIFICANTLY UNDERVALUED.

This valuation blends 3 independent models — including Residual Income, Discounted Cash Flow (DCF), Comparable Companies. The primary weight is given to the Residual Income model, with Bayesian triangulation used to reconcile the estimates into a single blended fair value. The 3 models show high agreement with a 12% spread between the highest and lowest estimates.

Monte Carlo simulation across 5,000 scenarios estimates a 98.4% probability that the stock is trading below its intrinsic value, with a median simulated value of $153.19.

Clarity's 1-year price target is $169.61, reflecting expected earnings growth and margin trajectory.

ARCH CAPITAL GROUP LTD. is classified under the P&C Insurance sector, and this valuation is based on 10-K · Filed 2026-02-26 filings sourced directly from SEC EDGAR. All models use trailing twelve month financials where available, with sector-appropriate growth and discount rate assumptions.