A Look At Hagerty (HGTY) Valuation As T.50 Supercar Auction Shines Light On Its Collector Car Platform

Hagerty’s T.50 auction event puts spotlight on its collector car ecosystem

Hagerty (HGTY) is drawing fresh attention after its Broad Arrow Auctions unit announced the first North American public auction of a Gordon Murray Automotive T.50, to be held during the California Mille tour.

See our latest analysis for Hagerty.

Hagerty’s T.50 auction comes as the shares trade at US$11.12, with a 1 month share price return of 8.7% but a 90 day share price return decline of 12.37%, while the 1 year total shareholder return of 26.65% points to improving long term momentum.

If rare machines like the T.50 catch your eye, it can be worth widening the search to other specialist opportunities via a focused screener such as 18 top founder-led companies

With Hagerty trading at US$11.12, showing a 1 year total return of 26.65% and sitting about 19% below an average analyst price target, the key question is whether there is still value here or if the market is already pricing in future growth.

Most Popular Narrative: 18.1% Undervalued

Hagerty’s most followed narrative pegs fair value at $13.57, which sits above the last close of $11.12 and frames the current share price as discounted against those expectations.

The expansion of Hagerty's European auction and marketplace business, alongside successful launches at high-profile Concours events and entry into new geographies, positions the company to tap into a growing global population of luxury and collectible vehicle enthusiasts. This should support strong top-line revenue growth and higher-margin ancillary business streams.

Read the complete narrative.

Want to see what is behind that fair value gap? The narrative leans heavily on future earnings power, margin uplift, and the duration of those trends.

Result: Fair Value of $13.57 (UNDERVALUED)

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

However, this hinges on Hagerty scaling newer offerings and international growth, while managing higher retained insurance risk that could pressure margins if loss trends worsen.

Find out about the key risks to this Hagerty narrative.

Another View: Cash Flow Model Flips The Script

Not every model points to upside. Our DCF model estimates Hagerty’s future cash flows at $5.82 per share, compared with the current $11.12 price, which implies the shares are trading well above that fair value. So which story do you trust more: earnings potential or cash generation?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Hagerty for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 58 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With mixed signals across fair value models, sentiment on Hagerty is clearly up for debate. Consider reviewing the data for yourself and weighing the 2 key rewards promptly.

Looking for more investment ideas?

If Hagerty has caught your attention, do not stop here. Broaden your watchlist with other potential ideas sourced from data driven screeners that many investors overlook.

• Spot opportunities in companies that trade below their assessed worth by scanning through 58 high quality undervalued stocks before prices fully reflect their fundamentals.
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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.

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