QBE Insurance Group Limited

CHIA:QBE Stock Report

Market Cap: AU$29.8b

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

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

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$19.77) is trading below our estimate of fair value (A$44.17)

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 Ratio11.3x
EarningsUS$1.71b
Market CapUS$19.35b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average22.7x
SUN Suncorp Group
26.5x4.7%AU$24.9b
IAG Insurance Australia Group
21.6x5.4%AU$19.4b
SDF Steadfast Group
28.1x10.9%AU$6.4b
NHF nib holdings
14.6x6.3%AU$2.7b
QBE QBE Insurance Group
11.3x0.9%AU$29.8b

Price-To-Earnings vs Peers: QBE is good value based on its Price-To-Earnings Ratio (11.3x) compared to the peer average (22.7x).

Price to Earnings Ratio vs Industry

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

17 CompaniesPrice / EarningsEstimated GrowthMarket Cap
QBE 11.3xIndustry Avg. 11.2xNo. of Companies72PE0816243240+
17 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: QBE is expensive 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 Ratio11.3x
Fair PE Ratio19.8x

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 (19.8x).

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$19.77
AU$19.51
-1.3%
9.3%AU$21.25AU$14.00n/a14
Nov ’25AU$17.07
AU$18.76
+9.9%
8.9%AU$21.00AU$14.00n/a13
Oct ’25AU$16.30
AU$18.58
+14.0%
8.7%AU$21.00AU$14.00n/a13
Sep ’25AU$15.79
AU$18.82
+19.2%
8.8%AU$21.00AU$14.00n/a14
Aug ’25AU$17.92
AU$19.49
+8.8%
9.1%AU$21.10AU$14.00n/a14
Jul ’25AU$17.06
AU$19.44
+13.9%
9.1%AU$21.20AU$14.00n/a14
Jun ’25AU$17.81
AU$19.56
+9.8%
8.9%AU$21.50AU$14.00n/a15
May ’25AU$17.49
AU$19.03
+8.8%
9.0%AU$20.75AU$14.00n/a14
Apr ’25AU$18.17
AU$18.49
+1.8%
8.4%AU$20.49AU$14.00n/a14
Mar ’25AU$17.34
AU$18.39
+6.1%
8.5%AU$20.49AU$14.00n/a14
Feb ’25AU$15.98
AU$18.09
+13.2%
9.5%AU$20.15AU$13.50n/a13
Jan ’25AU$14.77
AU$17.94
+21.5%
9.6%AU$20.90AU$13.50n/a13
Dec ’24AU$15.29
AU$18.01
+17.8%
9.4%AU$20.90AU$13.50n/a14
Nov ’24AU$15.73
AU$17.92
+13.9%
9.5%AU$21.00AU$13.50AU$17.0714
Oct ’24AU$15.76
AU$17.85
+13.2%
8.7%AU$20.00AU$13.50AU$16.3014
Sep ’24AU$15.05
AU$17.85
+18.6%
8.7%AU$20.00AU$13.50AU$15.7914
Aug ’24AU$15.84
AU$17.61
+11.2%
9.4%AU$20.00AU$13.00AU$17.9214
Jul ’24AU$15.68
AU$17.21
+9.7%
8.9%AU$19.65AU$13.00AU$17.0614
Jun ’24AU$14.58
AU$17.19
+17.9%
8.8%AU$19.65AU$13.00AU$17.8115
May ’24AU$15.53
AU$17.10
+10.1%
8.8%AU$19.00AU$13.00AU$17.4913
Apr ’24AU$14.55
AU$17.06
+17.3%
9.0%AU$19.00AU$13.00AU$18.1713
Mar ’24AU$15.21
AU$16.72
+9.9%
10.8%AU$19.00AU$13.00AU$17.3414
Feb ’24AU$13.89
AU$15.78
+13.6%
11.7%AU$19.00AU$12.00AU$15.9814
Jan ’24AU$13.48
AU$15.76
+16.9%
12.5%AU$19.00AU$12.00AU$14.7713
Dec ’23AU$12.96
AU$15.87
+22.4%
12.7%AU$19.00AU$12.00AU$15.2912
Nov ’23AU$12.47
AU$15.82
+26.9%
13.4%AU$18.91AU$12.00AU$15.7312

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

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