Premium Expansion Will Face Headwinds While Profitability Sees Continued Progress

AN

AnalystConsensusTarget

Not Invested

Based on Analyst Price Targets

Published

23 Apr 25

Updated

24 Mar 26

Views

273

24 Mar

US$58.32

AnalystConsensusTarget's Fair Value

US$90.00

35.2% undervalued

1Y

-56.0%

7D

8.7%

Loading

1Y

-56.0%

7D

8.7%

You can edit this narrative until Mar 25 5:10 PM. Then, changes will post as Updates.

Author's Valuation

US$9035.2% undervalued

AnalystConsensusTarget Fair Value

Shared on 24 Mar 26

Fair value Decreased 19%

ROOT: Future Pricing And Loss Trends Will Drive Upside Potential

Analysts have trimmed the price target on Root to $90.00 from $111.60, citing lower fair value assumptions and more moderate expectations for revenue growth and profit margins, partly offset by a slightly higher future P/E multiple. Analyst Commentary Street research around Root reflects a mix of optimism on execution and caution on valuation risk, with several firms trimming price targets while maintaining neutral to positive ratings.

2 views

Shared on 22 Feb 26

Fair value Decreased 10%

ROOT: Pricing And Loss Trends Will Drive Upside Potential Ahead

Narrative Update on Root Analysts have trimmed their price target on Root from $96 to $75 as they now reflect updated views on pricing, loss trends, and reserves in the insurance sector, along with slightly higher discount rates and more cautious profit margin assumptions in their valuation work. Analyst Commentary Analysts are reworking their models on Root around the upcoming insurance sector earnings season, with attention centering on how pricing, loss trends, and reserves could influence the path for margins and valuation.

34 views

Shared on 28 Oct 25

The analyst consensus price target for Root has shifted downward, dropping from $140 to $105 according to recent updates. Analysts cite mixed performance in premium growth and profitability, despite better-than-expected earnings.

45 views

Shared on 12 Oct 25

Fair value Decreased 4.75%

Analysts have lowered their average price target for Root from $130.60 to $124.40. They cite mixed trends in premium growth and company profitability despite recent earnings performance.

4 views

Shared on 15 Aug 25

Fair value Decreased 5.09%

Despite strong operating income beats, improved earnings forecasts, and higher premium growth, ongoing concerns about weaker policy-in-force growth tempered analyst enthusiasm, resulting in the consensus analyst price target for Root remaining unchanged at $137.60. Analyst Commentary Bullish analysts cited higher earned premium growth and improved loss ratios contributing to a significant operating income beat versus expectations.

3 views

Shared on 01 May 25

Fair value Decreased 5.10%

0 views

Valuator

Company Info

Notes

AnalystConsensusTarget Fair Value

US$90

35.2% undervalued

Future estimation in

Revenue

Profit Margin

Future PE

Growth p.a.

%

Decrease

Increase

Forecast revenue growth rate

7.22%

Historical revenue growth rate

40.67%

Insurance revenue growth rate

0.23%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

%

0

Decrease

Increase

Current discount rate

7.11%

Calculation

US$55.05m

Earnings '29

x

32.02x

PE Ratio '29

=

US$1.76b

Market Cap '29

US$1.76b

Market Cap '29

/

16.14m

No. shares '29

=

US$109.26

Share Price '29

US$109.26 Share Price '29

Discounted to 2026 @ 6.98% p.a.

=

US$89.24

Fair Value '26