Root, Inc.

NasdaqGS:ROOT Stock Report

Market Cap: US$1.8b

Root Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 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 profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ROOT. This is calculated by dividing ROOT's market cap by their current earnings.
What is ROOT's PE Ratio?
PE Ratio35.9x
EarningsUS$52.90m
Market CapUS$1.84b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ROOT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average56.7x
SKWD Skyward Specialty Insurance Group
17.8x15.39%US$2.2b
HCI HCI Group
13x25.17%US$1.7b
WTM White Mountains Insurance Group
167.4xn/aUS$4.5b
PLMR Palomar Holdings
28.4x22.63%US$3.9b
ROOT Root
35.9x17.65%US$1.8b

Price-To-Earnings vs Peers: ROOT is good value based on its Price-To-Earnings Ratio (35.9x) compared to the peer average (56.7x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UTGN UTG
2.2xn/aUS$117.51m
AIFU AIFU
0.5xn/aUS$32.16m
CUII China United Insurance Service
0.0003xn/aUS$3.13k
No more companies available in this PE range
ROOT 35.9xIndustry Avg. 14.4xNo. of Companies16PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ROOT is expensive based on its Price-To-Earnings Ratio (35.9x) compared to the US Insurance industry average (14.5x).

Price to Earnings Ratio vs Fair Ratio

What is ROOT'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.

ROOT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio35.9x
Fair PE Ratio13.6x

Price-To-Earnings vs Fair Ratio: ROOT is expensive based on its Price-To-Earnings Ratio (35.9x) compared to the estimated Fair Price-To-Earnings Ratio (13.6x).

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$123.75
US$149.80
+21.05%
12.21%US$172.00US$125.00n/a5
Jul ’26US$125.28
US$133.80
+6.80%
32.25%US$170.00US$51.00n/a5
Jun ’26US$130.99
US$133.80
+2.15%
32.25%US$170.00US$51.00n/a5
May ’26US$136.63
US$105.20
-23.00%
32.35%US$150.00US$51.00n/a5
Apr ’26US$128.60
US$96.60
-24.88%
27.69%US$130.00US$51.00n/a5
Mar ’26US$135.17
US$84.00
-37.86%
26.85%US$115.00US$51.00n/a5
Feb ’26US$97.50
US$83.00
-14.87%
12.89%US$95.00US$67.00n/a4
Jan ’26US$72.59
US$76.20
+4.97%
20.89%US$95.00US$51.00n/a5
Dec ’25US$99.81
US$72.80
-27.06%
18.00%US$90.00US$51.00n/a5
Nov ’25US$71.01
US$73.33
+3.27%
18.02%US$90.00US$51.00n/a6
Oct ’25US$37.74
US$70.43
+86.62%
20.35%US$90.00US$51.00n/a7
Sep ’25US$43.36
US$70.43
+62.43%
20.35%US$90.00US$51.00n/a7
Aug ’25US$57.74
US$67.25
+16.47%
36.09%US$90.00US$13.00n/a8
Jul ’25US$51.48
US$68.75
+33.55%
37.39%US$103.00US$13.00US$125.288
Jun ’25US$50.84
US$63.75
+25.39%
49.94%US$103.00US$11.00US$130.998
May ’25US$69.91
US$56.00
-19.90%
63.39%US$103.00US$11.00US$136.638
Apr ’25US$60.52
US$16.88
-72.12%
55.78%US$40.00US$10.00US$128.608
Mar ’25US$39.11
US$16.88
-56.85%
55.78%US$40.00US$10.00US$135.178
Feb ’25US$8.20
US$10.88
+32.62%
15.55%US$15.00US$9.00US$97.508
Jan ’25US$10.48
US$11.00
+4.96%
16.12%US$15.00US$9.00US$72.597
Dec ’24US$10.55
US$10.17
-3.63%
21.99%US$15.00US$6.50US$99.819
Nov ’24US$8.85
US$9.72
+9.86%
25.09%US$15.00US$5.50US$71.019
Oct ’24US$9.51
US$9.83
+3.40%
25.14%US$15.00US$5.50US$37.749
Sep ’24US$11.80
US$9.83
-16.67%
25.14%US$15.00US$5.50US$43.369
Aug ’24US$10.93
US$7.19
-34.23%
42.94%US$15.00US$4.20US$57.749
Jul ’24US$8.94
US$6.77
-24.25%
45.30%US$15.00US$4.20US$51.489
AnalystConsensusTarget
Consensus Narrative from 5 Analysts
US$149.80
Fair Value
17.4% undervalued intrinsic discount
5
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/07/08 18:40
End of Day Share Price 2025/07/08 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Root, Inc. is covered by 18 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Tracy Dolin-BenguiguiBarclays
Ross SandlerBarclays
Tracy Dolin-BenguiguiBarclays