QBE Insurance Group (ASX:QBE) Stock Valuation, Peer Comparison & Price Targets

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

QBE (A$19.6) is trading below our estimate of [[fair value]] (A$44.1)

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$19.6) is trading below our estimate of fair value (A$44.1)

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

Key Valuation Metric

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

Key metric: As QBE is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for QBE. This is calculated by dividing QBE's market cap by their current earnings.
What is QBE's PE Ratio?
PE Ratio	11.2x
Earnings	US$1.71b
Market Cap	US$18.85b

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/Revenue	0.9x
Enterprise Value/EBITDA	7.6x
PEG Ratio	12x

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.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	22.5x
SUN Suncorp Group	26.6x	4.7%	AU$25.0b
IAG Insurance Australia Group	21.5x	5.4%	AU$19.3b
SDF Steadfast Group	27.6x	10.9%	AU$6.3b
NHF nib holdings	14.5x	6.3%	AU$2.7b
QBE QBE Insurance Group	11.2x	0.9%	AU$29.0b

Price-To-Earnings vs Peers: QBE is good value based on its Price-To-Earnings Ratio (11.3x) compared to the peer average (22.5x).

Price to Earnings Ratio vs Industry

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

17 Companies	Price / Earnings	Estimated Growth	Market Cap

17 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: QBE is good value based on its Price-To-Earnings Ratio (11.3x) compared to the Global Insurance industry average (11.3x).

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 Ratio	11.2x
Fair PE Ratio	20x

Price-To-Earnings vs Fair Ratio: QBE is good value based on its Price-To-Earnings Ratio (11.3x) compared to the estimated Fair Price-To-Earnings Ratio (20x).

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.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	AU$19.60	AU$19.51 -0.4%	9.3%	AU$21.25	AU$14.00	n/a	14
Nov ’25	AU$17.08	AU$18.76 +9.9%	8.9%	AU$21.00	AU$14.00	n/a	13
Oct ’25	AU$16.28	AU$18.58 +14.2%	8.7%	AU$21.00	AU$14.00	n/a	13
Sep ’25	AU$15.79	AU$18.82 +19.2%	8.8%	AU$21.00	AU$14.00	n/a	14
Aug ’25	AU$17.91	AU$19.49 +8.8%	9.1%	AU$21.10	AU$14.00	n/a	14
Jul ’25	AU$17.06	AU$19.44 +13.9%	9.1%	AU$21.20	AU$14.00	n/a	14
Jun ’25	AU$17.80	AU$19.56 +9.9%	8.9%	AU$21.50	AU$14.00	n/a	15
May ’25	AU$17.52	AU$19.03 +8.6%	9.0%	AU$20.75	AU$14.00	n/a	14
Apr ’25	AU$18.13	AU$18.49 +2.0%	8.4%	AU$20.49	AU$14.00	n/a	14
Mar ’25	AU$17.32	AU$18.39 +6.2%	8.5%	AU$20.49	AU$14.00	n/a	14
Feb ’25	AU$16.02	AU$18.09 +12.9%	9.5%	AU$20.15	AU$13.50	n/a	13
Jan ’25	AU$14.81	AU$17.94 +21.2%	9.6%	AU$20.90	AU$13.50	n/a	13
Dec ’24	AU$15.33	AU$18.01 +17.5%	9.4%	AU$20.90	AU$13.50	n/a	14
Nov ’24	AU$15.75	AU$17.92 +13.7%	9.5%	AU$21.00	AU$13.50	AU$17.08	14
Oct ’24	AU$15.71	AU$17.85 +13.6%	8.7%	AU$20.00	AU$13.50	AU$16.28	14
Sep ’24	AU$15.11	AU$17.85 +18.1%	8.7%	AU$20.00	AU$13.50	AU$15.79	14
Aug ’24	AU$15.85	AU$17.61 +11.1%	9.4%	AU$20.00	AU$13.00	AU$17.91	14
Jul ’24	AU$15.67	AU$17.21 +9.8%	8.9%	AU$19.65	AU$13.00	AU$17.06	14
Jun ’24	AU$14.63	AU$17.19 +17.5%	8.8%	AU$19.65	AU$13.00	AU$17.80	15
May ’24	AU$15.47	AU$17.10 +10.5%	8.8%	AU$19.00	AU$13.00	AU$17.52	13
Apr ’24	AU$14.59	AU$17.06 +17.0%	9.0%	AU$19.00	AU$13.00	AU$18.13	13
Mar ’24	AU$15.24	AU$16.72 +9.7%	10.8%	AU$19.00	AU$13.00	AU$17.32	14
Feb ’24	AU$13.86	AU$15.78 +13.9%	11.7%	AU$19.00	AU$12.00	AU$16.02	14
Jan ’24	AU$13.43	AU$15.76 +17.4%	12.5%	AU$19.00	AU$12.00	AU$14.81	13
Dec ’23	AU$12.95	AU$15.87 +22.5%	12.7%	AU$19.00	AU$12.00	AU$15.33	12
Nov ’23	AU$12.52	AU$15.82 +26.4%	13.4%	AU$18.91	AU$12.00	AU$15.75	12

Analyst Forecast: Target price is lower than the current share price.

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QBE Insurance Group Valuation