At first glance, MGIC might seem to be fully pricing its bullish fundamentals; after all, it is trading 3.5x book value. For comparison, it traded roughly 1.3-1.5x book value from 2004-2007 and had a P/E of 12. However, drilling down a little deeper, I think the company remains a compelling value as its book value is set to soar. In a sense, the company is poised to grow into and beyond its current valuation.
The bullish case for MGIC
Source: Seeking Alpha