Is Radian Group (RDN) Cheap As Strong Q2 Results And Buybacks Lift Confidence?

Radian Group stock reacts to Q2 results and recent buybacks

Radian Group (RDN) is back in focus after second quarter 2026 results highlighted strong revenue, resilient mortgage insurance trends, and the first full quarter contribution from specialty insurer Inigo, alongside ongoing share repurchases.

See our latest analysis for Radian Group.

Radian Group's latest report and buyback activity land against a mixed share price backdrop, with a 1 day share price return of 1.79% but a 7 day share price return that declined 5.33%. The 1 year total shareholder return of 11.80% and 5 year total shareholder return of 79.92% point to longer term investors still being rewarded, suggesting recent momentum has cooled even as confidence in the underlying business appears stronger after the Inigo contribution and mortgage insurance trends.

If the Q2 move in Radian Group has you reassessing your watchlist, this could be a good moment to broaden your search with 19 top founder-led companies

After the Q2 swing and steady buybacks, Radian Group sits at about $36.91 while analyst and intrinsic estimates point higher. So where does fair value really lie across that spread, and what does the range imply for you?

Price-to-Earnings of 8.2x: Is it justified?

Radian Group is trading on a P/E of 8.2x, which suggests the share price does not fully reflect its earnings power when compared with both peers and the wider industry.

The P/E ratio compares what you pay per share to what the company earns per share. For a business like Radian Group that generates mortgage insurance and related fee income, earnings are a central focus for many investors because they link closely to underwriting performance and capital strength.

On that basis, Radian Group screens as good value. The stock trades on a P/E of 8.2x while the estimated fair P/E for the company is 12.7x. That fair ratio level is meaningfully higher than where the market is pricing the stock today, which suggests a gap that could close if earnings or sentiment shift.

The comparison with peers is also clear. Radian Group's P/E of 8.2x sits below the peer average of 9.1x and is even further below the US Diversified Financial industry average of 16.9x. The company is priced at a discount both to direct peers and to the broader group of diversified financial stocks, which reinforces the impression that the market is applying a relatively cautious earnings multiple here.

Explore the SWS fair ratio for Radian Group

Result: Price-to-Earnings of 8.2x (UNDERVALUED)

However, you also need to keep an eye on mortgage credit conditions and housing activity, since weaker trends in those areas could quickly change the picture for Radian Group.

Find out about the key risks to this Radian Group narrative.

Another view on Radian Group's value using cash flows

The P/E workup suggests Radian Group looks inexpensive, but the SWS DCF model goes even further. At a share price of $36.91 and an estimated future cash flow value of $104.03, the stock screens as heavily undervalued on cash flows. That gap raises a simple question: Which signal do you trust more for your own process?

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 Radian Group 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 52 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

If this mix of cautious pricing and optimistic signals around Radian Group has you interested, consider reviewing the details promptly and comparing the numbers with your own expectations. Then evaluate those points further by checking the 4 key rewards

Looking for more investment ideas beyond Radian Group?

If Radian Group is on your radar after these Q2 results, do not stop here. Broaden your opportunity set and make sure you are seeing the full field.

• Spot potential mispricing early by reviewing screener containing 21 high quality undiscovered gems before other investors catch on.
• Strengthen your focus on capital preservation by checking the 83 resilient stocks with low risk scores that match your comfort level.
• Target resilient cash generation by scanning the solid balance sheet and fundamentals stocks screener (48 results) that can support growth through different conditions.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com