Premium Expansion Will Face Headwinds While Profitability Sees Continued Progress

AN

AnalystConsensusTarget

AnalystConsensusTarget

Not Invested

Based on Analyst Price Targets

Published

23 Apr 25

Updated

22 Feb 26

Views

259

n/a

n/a

AnalystConsensusTarget's Fair Value

n/a

1Y

-68.5%

7D

-8.9%

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1Y

-68.5%

7D

-8.9%

You can edit this narrative until Feb 23 6:10 AM. Then, changes will post as Updates.

Author's Valuation

US$111.660.3% undervalued

AnalystConsensusTarget Fair Value

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.

33 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$111.6

60.3% undervalued

Future estimation in

Revenue

Profit Margin

Future PE

Growth p.a.

%

Decrease

Increase

Forecast revenue growth rate

9.94%

Historical revenue growth rate

39.63%

Insurance revenue growth rate

0.26%

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

6.98%

Calculation

US$71.14m

Earnings '29

x

30.63x

PE Ratio '29

=

US$2.18b

Market Cap '29

US$2.18b

Market Cap '29

/

15.95m

No. shares '29

=

US$136.63

Share Price '29

US$136.63 Share Price '29

Discounted to 2026 @ 6.98% p.a.

=

US$111.60

Fair Value '26