Hanover Insurance Fair Value
TH
The fair market value of THG stock is 129.3 USD. Relative to the market price of 153.93 USD Hanover Insurance is overvalued by 16%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Hanover Insurance Valuation
Current THG share ticker price is 153.93 USD.
The fair value level of 129.3 USD can be considered as an effective entry point for long-term investors to start investing in THG stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 16% higher its fair value
Current price is 27% higher its minimum value
Current price is 99% lower its maximum value
Market price:
THG stock is overvalued
It means the current price may concern as a Risky Entry Point
Hanover Insurance Group Inc Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
29.96
2
Median P/E over 5 years
12.67
3
Minimum P/E over 5 years
11.02
4
Earning per share (last 12 months)
10.21 USD
Maximum value
1
x
4
=
305.78 USD
Fair value
2
x
4
=
129.3 USD
Minimum value
3
x
4
=
112.51 USD
Hanover Insurance Group Inc price metrics
2.32
Annual return (geometric mean)
28.34
Risk (standard deviation) of returns
β
0.75
Beta (volatility compared to market)