THG PE Ratio & Valuation,Is THG Overvalued

THG Relative Valuation

THG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, THG is overvalued; if below, it's undervalued.

Historical Valuation

Hanover Insurance Group Inc (THG) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.99 is considered Undervalued compared with the five-year average of 22.11. The fair price of Hanover Insurance Group Inc (THG) is between 216.83 to 246.90 according to relative valuation methord. Compared to the current price of 185.18 USD , Hanover Insurance Group Inc is Undervalued By 14.6%.

Relative Value

Fair Zone

216.83-246.90

Current Price：185.18

14.6%

Undervalued

11.23

8.57

EV/EBITDA

Hanover Insurance Group Inc. (THG) has a current EV/EBITDA of 8.57. The 5-year average EV/EBITDA is 2.81. The thresholds are as follows: Strongly Undervalued below -3.97, Undervalued between -3.97 and -0.58, Fairly Valued between 6.21 and -0.58, Overvalued between 6.21 and 9.60, and Strongly Overvalued above 9.60. The current Forward EV/EBITDA of 8.57 falls within the Overvalued range.

9.02

EV/EBIT

Hanover Insurance Group Inc. (THG) has a current EV/EBIT of 9.02. The 5-year average EV/EBIT is 11.87. The thresholds are as follows: Strongly Undervalued below -19.94, Undervalued between -19.94 and -4.04, Fairly Valued between 27.78 and -4.04, Overvalued between 27.78 and 43.69, and Strongly Overvalued above 43.69. The current Forward EV/EBIT of 9.02 falls within the Historic Trend Line -Fairly Valued range.

0.99

Hanover Insurance Group Inc. (THG) has a current PS of 0.99. The 5-year average PS is 0.86. The thresholds are as follows: Strongly Undervalued below 0.66, Undervalued between 0.66 and 0.76, Fairly Valued between 0.96 and 0.76, Overvalued between 0.96 and 1.06, and Strongly Overvalued above 1.06. The current Forward PS of 0.99 falls within the Overvalued range.

0.00

P/OCF

Hanover Insurance Group Inc. (THG) has a current P/OCF of 0.00. The 5-year average P/OCF is 2.30. The thresholds are as follows: Strongly Undervalued below -4.04, Undervalued between -4.04 and -0.87, Fairly Valued between 5.47 and -0.87, Overvalued between 5.47 and 8.64, and Strongly Overvalued above 8.64. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Hanover Insurance Group Inc. (THG) has a current P/FCF of 0.00. The 5-year average P/FCF is 0.00. The thresholds are as follows: Strongly Undervalued below 0.00, Undervalued between 0.00 and 0.00, Fairly Valued between 0.00 and 0.00, Overvalued between 0.00 and 0.00, and Strongly Overvalued above 0.00. The current Forward P/FCF of 0.00 falls within the Strongly Undervalued range.

Hanover Insurance Group Inc (THG) has a current Price-to-Book (P/B) ratio of 1.93. Compared to its 3-year average P/B ratio of 1.92 , the current P/B ratio is approximately 0.26% higher. Relative to its 5-year average P/B ratio of 1.82, the current P/B ratio is about 5.90% higher. Hanover Insurance Group Inc (THG) has a Forward Free Cash Flow (FCF) yield of approximately 15.20%. Compared to its 3-year average FCF yield of 11.73%, the current FCF yield is approximately 29.59% lower. Relative to its 5-year average FCF yield of 13.42% , the current FCF yield is about 13.28% lower.

1.93

P/B

Median3y

1.92

Median5y

1.82

15.20

FCF Yield

Median3y

11.73

Median5y

13.42

Competitors Valuation Multiple

The average P/S ratio for THG's competitors is 2.42, providing a benchmark for relative valuation. Hanover Insurance Group Inc Corp (THG) exhibits a P/S ratio of 0.99, which is -58.95% above the industry average. Given its robust revenue growth of 6.40%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of THG increased by 19.73% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 6.57 to 10.80.

The secondary factor is the Revenue Growth, contributed 6.40%to the performance.

Overall, the performance of THG in the past 1 year is driven by Margin Expansion. Which is more sustainable.

6.40%

1.55B → 1.65B

Revenue Growth

64.38%

6.57 → 10.80

Margin Expansion

-51.05%

21.88 → 10.71

P/E Change

19.73%

154.66 → 185.18

Mkt Cap Growth

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Frequently Asked Questions

Is Hanover Insurance Group Inc (THG) currently overvalued or undervalued?

What is Hanover Insurance Group Inc (THG) fair value?

THG's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Hanover Insurance Group Inc (THG) is between 216.83 to 246.90 according to relative valuation methord.

How does THG's valuation metrics compare to the industry average?

What is the current P/B ratio for Hanover Insurance Group Inc (THG) as of Dec 15 2025?

As of Dec 15 2025, Hanover Insurance Group Inc (THG) has a P/B ratio of 1.93. This indicates that the market values THG at 1.93 times its book value.

What is the current FCF Yield for Hanover Insurance Group Inc (THG) as of Dec 15 2025?

As of Dec 15 2025, Hanover Insurance Group Inc (THG) has a FCF Yield of 15.20%. This means that for every dollar of Hanover Insurance Group Inc’s market capitalization, the company generates 15.20 cents in free cash flow.

What is the current Forward P/E ratio for Hanover Insurance Group Inc (THG) as of Dec 15 2025?

As of Dec 15 2025, Hanover Insurance Group Inc (THG) has a Forward P/E ratio of 11.23. This means the market is willing to pay $11.23 for every dollar of Hanover Insurance Group Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Hanover Insurance Group Inc (THG) as of Dec 15 2025?

As of Dec 15 2025, Hanover Insurance Group Inc (THG) has a Forward P/S ratio of 0.99. This means the market is valuing THG at $0.99 for every dollar of expected revenue over the next 12 months.

THG Valuation