QBE Insurance Group Limited

ASX:QBE Stock Report

Mkt Cap: AU$21.8b

We’ve recently updated our valuation analysis.

QBE Insurance Group Valuation

Is QBE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for QBE?

Other financial metrics that can be useful for relative valuation.

QBE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA13x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

How does QBE's PE Ratio compare to its peers?

The above table shows the PE ratio for QBE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26x
SUN Suncorp Group
19.7x-0.7%AU$16.8b
IAG Insurance Australia Group
19.4x8.2%AU$12.5b
MPL Medibank Private
24.2x5.6%AU$9.9b
SDF Steadfast Group
40.5x10.5%AU$6.1b
QBE QBE Insurance Group
20.1x17.5%AU$21.8b

Price-To-Earnings vs Peers: QBE is good value based on its Price-To-Earnings Ratio (20.1x) compared to the peer average (26x).

Price to Earnings Ratio vs Industry

How does QBE's PE Ratio compare vs other companies in the Global Insurance Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.6%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.6%
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No more companies

Price-To-Earnings vs Industry: QBE is expensive based on its Price-To-Earnings Ratio (20.1x) compared to the Global Insurance industry average (13.1x)

Price to Earnings Ratio vs Fair Ratio

What is QBE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

QBE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.1x
Fair PE Ratio33.9x

Price-To-Earnings vs Fair Ratio: QBE is good value based on its Price-To-Earnings Ratio (20.1x) compared to the estimated Fair Price-To-Earnings Ratio (33.9x).

Share Price vs Fair Value

What is the Fair Price of QBE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: QBE (A$14.62) is trading below our estimate of fair value (A$30.05)

Significantly Below Fair Value: QBE is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst QBE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$14.62
AU$17.19
+17.6%
8.8%AU$19.65AU$13.00n/a15
May ’24AU$15.47
AU$17.10
+10.5%
8.8%AU$19.00AU$13.00n/a13
Apr ’24AU$14.59
AU$17.06
+17.0%
9.0%AU$19.00AU$13.00n/a13
Mar ’24AU$15.24
AU$16.72
+9.7%
10.8%AU$19.00AU$13.00n/a14
Feb ’24AU$13.86
AU$15.78
+13.9%
11.7%AU$19.00AU$12.00n/a14
Jan ’24AU$13.43
AU$15.76
+17.4%
12.5%AU$19.00AU$12.00n/a13
Dec ’23AU$12.95
AU$15.87
+22.5%
12.7%AU$19.00AU$12.00n/a12
Nov ’23AU$12.52
AU$15.82
+26.4%
13.4%AU$18.91AU$12.00n/a12
Oct ’23AU$11.53
AU$15.67
+35.9%
14.3%AU$18.80AU$11.00n/a12
Sep ’23AU$11.94
AU$15.59
+30.6%
13.8%AU$18.80AU$11.00n/a12
Aug ’23AU$11.79
AU$15.12
+28.2%
11.6%AU$17.40AU$11.00n/a11
Jul ’23AU$12.06
AU$15.42
+27.9%
10.9%AU$17.40AU$11.00n/a11
Jun ’23AU$12.19
AU$15.34
+25.9%
10.6%AU$17.40AU$11.00AU$14.6311
May ’23AU$12.32
AU$14.52
+17.9%
9.9%AU$16.10AU$11.00AU$15.4711
Apr ’23AU$11.58
AU$14.19
+22.5%
9.3%AU$16.10AU$11.00AU$14.5911
Mar ’23AU$11.47
AU$14.23
+24.0%
9.2%AU$16.10AU$11.00AU$15.2411
Feb ’23AU$11.38
AU$14.75
+29.6%
9.9%AU$16.60AU$11.00AU$13.8611
Jan ’23AU$11.35
AU$14.05
+23.8%
9.4%AU$15.60AU$11.00AU$13.4311
Dec ’22AU$11.74
AU$14.08
+19.9%
9.6%AU$15.60AU$11.00AU$12.9511
Nov ’22AU$12.12
AU$13.56
+11.9%
9.3%AU$15.60AU$11.00AU$12.5211
Oct ’22AU$11.31
AU$13.68
+21.0%
9.3%AU$15.60AU$11.00AU$11.5311
Sep ’22AU$12.05
AU$13.77
+14.3%
8.6%AU$15.60AU$11.00AU$11.9411
Aug ’22AU$10.89
AU$12.22
+12.2%
8.4%AU$13.40AU$10.10AU$11.7911
Jul ’22AU$10.72
AU$11.69
+9.0%
9.8%AU$13.40AU$9.50AU$12.0612
Jun ’22AU$10.94
AU$11.69
+6.9%
9.8%AU$13.40AU$9.50AU$12.1912

Analyst Forecast: Target price is less than 20% higher than the current share price.

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