Allstate Valuation

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

ALL.PRI ($20.87) is trading below our estimate of [[fair value]] ($51.43)

Is ALL.PRI 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 ALL.PRI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ALL.PRI ($20.87) is trading below our estimate of fair value ($51.43)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ALL.PRI?

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

The above table shows the Price to Earnings ratio for ALL.PRI. This is calculated by dividing ALL.PRI's market cap by their current earnings.
What is ALL.PRI's PE Ratio?
PE Ratio	13.4x
Earnings	US$4.11b
Market Cap	US$55.04b

ALL.PRI 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	1x
Enterprise Value/EBITDA	10.4x
PEG Ratio	2.8x

Price to Earnings Ratio vs Peers

How does ALL.PRI's PE Ratio compare to its peers?

The above table shows the PE ratio for ALL.PRI 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	10.9x
TRV Travelers Companies	13.4x	2.8%	US$59.9b
HIG Hartford Financial Services Group	11.9x	7.7%	US$35.5b
ACGL Arch Capital Group	6.7x	-14.7%	US$37.6b
CB Chubb	11.7x	1.0%	US$116.3b
ALL.PRI Allstate	13.4x	4.8%	US$55.0b

Price-To-Earnings vs Peers: ALL.PRI is expensive based on its Price-To-Earnings Ratio (13.4x) compared to the peer average (10.9x).

Price to Earnings Ratio vs Industry

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

3 Companies	Price / Earnings	Estimated Growth	Market Cap
UTGN UTG	2x	n/a	US$89.87m
AORE.F American Overseas Group	2.1x	n/a	US$16.68m
CUII China United Insurance Service	0.0003x	n/a	US$3.13k

No more companies available in this PE range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: ALL.PRI is good value based on its Price-To-Earnings Ratio (13.4x) compared to the US Insurance industry average (13.9x).

Price to Earnings Ratio vs Fair Ratio

What is ALL.PRI'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.

ALL.PRI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	13.4x
Fair PE Ratio	15.5x

Price-To-Earnings vs Fair Ratio: ALL.PRI is good value based on its Price-To-Earnings Ratio (13.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.5x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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