A Fresh Look at Stewart Information Services (STC) Valuation After Steady 6% Share Price Climb

Stewart Information Services (STC) stock has attracted some attention recently, thanks to its steady climb over the past month. The company’s share price moved up about 6% during that period, sparking new discussions about where it could be headed next.

See our latest analysis for Stewart Information Services.

Stewart Information Services’ share price has been steadily climbing, now up more than 6% over the past month and sitting at $71.4, with momentum building. While the year-to-date share price return stands at a healthy 8.5%, total shareholder return over the last three years has soared to nearly 94%. This reflects long-term growth even as shorter-term gains have been more modest lately.

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With shares posting robust long-term returns and recent gains, the key question for investors is whether Stewart Information Services remains undervalued or if expectations for future growth are already reflected in the current price.

Most Popular Narrative: 8.5% Undervalued

According to the most popular valuation narrative, Stewart Information Services appears attractively priced, with an estimated fair value of $78 per share compared to the recent close of $71.40. This suggests that investors may be underestimating the company's forward prospects, even after the recent share price rally.

Strategic acquisitions in targeted Metropolitan Statistical Areas (MSAs) are anticipated to drive growth, increasing future revenue and earnings. Expanding agency services in key markets with notable year-over-year agency revenue growth is expected to enhance net margins and increase operating income.

Read the complete narrative.

Curious what bold assumptions power this premium valuation? The narrative hinges on breakthrough growth forecasts and unusually optimistic profit targets. See the pivotal financial drivers and decide if they stand up to scrutiny. Read the full story to unravel the specifics fueling this price target.

Result: Fair Value of $78 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, uncertainty in the housing market and rising operating costs could quickly challenge Stewart Information Services’ optimistic growth forecasts.

Find out about the key risks to this Stewart Information Services narrative.

Another View: What Multiples Say

Looking beyond fair value estimates, Stewart Information Services trades at a price-to-earnings of 19.6x, which is well above the US Insurance industry’s average of 13.2x and even its own fair ratio of 16.4x. That premium suggests the market might already be factoring in a lot of future growth. Does this mean higher valuation risk, or could strong results justify it?

Story continues

See what the numbers say about this price — find out in our valuation breakdown.NYSE:STC PE Ratio as at Nov 2025

Build Your Own Stewart Information Services Narrative

If you want to take a different view or dig deeper into the numbers yourself, you can craft your own Stewart Information Services narrative in just a few minutes, starting with Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Stewart Information Services.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include STC.

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