Is Chubb (CB) Still Undervalued After Its Recent Grind Higher?

Chubb (CB) keeps grinding higher, with the stock recently closing around $294 after a strong past month and past 3 months. For investors, the real story is how those steady gains stack up against fundamentals.

See our latest analysis for Chubb.

The latest share price of $294.5 caps a steady climb, with a solid year to date share price return and an impressive five year total shareholder return that suggests momentum is still building as investors focus on Chubb's earnings quality and risk profile.

If Chubb's steady grind higher has you thinking about what else might be setting up for multi year compounding, now is a good time to explore fast growing stocks with high insider ownership

With the stock hovering just below analyst targets and trading at a steep discount to some intrinsic value estimates, investors have to ask: Is Chubb still undervalued, or is the market already baking in years of profitable growth?

Most Popular Narrative Narrative: 4.3% Undervalued

With Chubb last closing at $294.5 against a narrative fair value of $307.73, the valuation hinges on modest growth, disciplined capital use, and steady margins.

In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 14.2x on those 2028 earnings, up from 12.0x today. This future PE is lower than the current PE for the US Insurance industry at 14.3x.

Read the complete narrative.

Curious why a conservative earnings path still supports a higher multiple ahead? The narrative quietly leans on margin expansion and shrinking share count. Want to see how those assumptions combine to support that higher fair value and still sit below the broader industry multiple? Read on to unpack the full playbook behind this pricing logic.

Result: Fair Value of $307.73 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising catastrophe losses and intensifying competition in property and casualty lines could quickly challenge the assumed margin gains and potential for valuation upside.

Find out about the key risks to this Chubb narrative.

Build Your Own Chubb Narrative

If you would rather lean on your own judgment and dig into the numbers yourself, you can build a personalized Chubb narrative in minutes: Do it your way

A great starting point for your Chubb research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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