Root, Inc.

NasdaqGS:ROOT Stock Report

Market Cap: US$1.6b

Root Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate ROOT's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate ROOT's fair value for valuation analysis.

Key Valuation Metric

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

Key metric: As ROOT is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for ROOT. This is calculated by dividing ROOT's market cap by their current revenue.
What is ROOT's PS Ratio?
PS Ratio1.6x
SalesUS$1.04b
Market CapUS$1.65b

Price to Sales Ratio vs Peers

How does ROOT's PS Ratio compare to its peers?

The above table shows the PS ratio for ROOT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.6x
HG Hamilton Insurance Group
0.8x9.4%US$1.9b
SKWD Skyward Specialty Insurance Group
2x12.1%US$2.1b
TRUP Trupanion
1.8x5.0%US$2.3b
HCI HCI Group
1.6x8.2%US$1.2b
ROOT Root
1.6x10.7%US$1.6b

Price-To-Sales vs Peers: ROOT is expensive based on its Price-To-Sales Ratio (1.6x) compared to the peer average (1.6x).

Price to Sales Ratio vs Industry

How does ROOT's PS Ratio compare vs other companies in the US Insurance Industry?

9 CompaniesPrice / SalesEstimated GrowthMarket Cap
GOCO GoHealth
0.2x8.0%US$272.58m
CCG Cheche Group
0.1x5.6%US$67.42m
AAME Atlantic American
0.2xn/aUS$33.45m
CNFR Conifer Holdings
0.2xn/aUS$14.55m
ROOT 1.6xIndustry Avg. 1.1xNo. of Companies19PS00.81.62.43.24+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: ROOT is expensive based on its Price-To-Sales Ratio (1.6x) compared to the US Insurance industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

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

ROOT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.6x
Fair PS Ratio0.8x

Price-To-Sales vs Fair Ratio: ROOT is expensive based on its Price-To-Sales Ratio (1.6x) compared to the estimated Fair Price-To-Sales Ratio (0.8x).

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 ROOT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$109.23
US$72.80
-33.4%
18.0%US$90.00US$51.00n/a5
Nov ’25US$71.01
US$73.33
+3.3%
18.0%US$90.00US$51.00n/a6
Oct ’25US$37.74
US$70.43
+86.6%
20.3%US$90.00US$51.00n/a7
Sep ’25US$43.36
US$70.43
+62.4%
20.3%US$90.00US$51.00n/a7
Aug ’25US$57.74
US$67.25
+16.5%
36.1%US$90.00US$13.00n/a8
Jul ’25US$51.48
US$68.75
+33.5%
37.4%US$103.00US$13.00n/a8
Jun ’25US$50.84
US$63.75
+25.4%
49.9%US$103.00US$11.00n/a8
May ’25US$69.91
US$56.00
-19.9%
63.4%US$103.00US$11.00n/a8
Apr ’25US$60.52
US$16.88
-72.1%
55.8%US$40.00US$10.00n/a8
Mar ’25US$39.11
US$16.88
-56.9%
55.8%US$40.00US$10.00n/a8
Feb ’25US$8.20
US$10.88
+32.6%
15.5%US$15.00US$9.00n/a8
Jan ’25US$10.48
US$11.00
+5.0%
16.1%US$15.00US$9.00n/a7
Dec ’24US$10.55
US$10.17
-3.6%
22.0%US$15.00US$6.50n/a9
Nov ’24US$8.85
US$9.72
+9.9%
25.1%US$15.00US$5.50US$71.019
Oct ’24US$9.51
US$9.83
+3.4%
25.1%US$15.00US$5.50US$37.749
Sep ’24US$11.80
US$9.83
-16.7%
25.1%US$15.00US$5.50US$43.369
Aug ’24US$10.93
US$7.19
-34.2%
42.9%US$15.00US$4.20US$57.749
Jul ’24US$8.94
US$6.77
-24.2%
45.3%US$15.00US$4.20US$51.489
Jun ’24US$4.76
US$7.00
+47.0%
42.7%US$15.00US$4.20US$50.8410
May ’24US$4.24
US$7.06
+66.6%
41.2%US$15.00US$4.00US$69.9111
Apr ’24US$4.51
US$7.10
+57.4%
40.0%US$15.00US$4.10US$60.5211
Mar ’24US$4.89
US$7.10
+45.2%
40.0%US$15.00US$4.10US$39.1111
Feb ’24US$6.12
US$11.81
+93.0%
72.9%US$32.40US$4.00US$8.2011
Jan ’24US$4.49
US$13.63
+203.5%
60.6%US$32.40US$6.00US$10.4811
Dec ’23US$7.05
US$13.85
+96.5%
58.3%US$32.40US$8.00US$10.5511
Nov ’23US$8.07
US$19.33
+139.6%
40.3%US$32.40US$9.50US$8.8510

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

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