We’ve recently updated our valuation analysis.

Chubb Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CB 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/Revenue2.7x
Enterprise Value/EBITDA15.6x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average41x
PGR Progressive
113.6x34.4%US$78.9b
TRV Travelers Companies
15.8x11.6%US$44.6b
ACGL Arch Capital Group
19.8x31.8%US$23.8b
WRB W. R. Berkley
14.6x5.0%US$18.9b
CB Chubb
15.6x10.9%US$95.9b

Price-To-Earnings vs Peers: CB is good value based on its Price-To-Earnings Ratio (15.6x) compared to the peer average (41x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.9%
n/an/an/a

Price-To-Earnings vs Industry: CB is good value based on its Price-To-Earnings Ratio (15.6x) compared to the US Insurance industry average (16.1x)


Price to Earnings Ratio vs Fair Ratio

What is CB'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.

CB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.6x
Fair PE Ratio15.6x

Price-To-Earnings vs Fair Ratio: CB is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).


Share Price vs Fair Value

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

Below Fair Value: CB ($231.11) is trading below our estimate of fair value ($307.84)

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


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 CB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$231.11
US$241.55
+4.5%
8.0%US$270.00US$190.00n/a20
Jan ’24US$220.60
US$235.89
+6.9%
9.4%US$270.00US$175.00n/a18
Dec ’23US$218.32
US$232.68
+6.6%
8.9%US$270.00US$175.00n/a19
Nov ’23US$213.48
US$231.30
+8.3%
9.2%US$270.00US$175.00n/a20
Oct ’23US$181.88
US$229.25
+26.0%
9.2%US$260.00US$165.00n/a20
Sep ’23US$192.14
US$228.75
+19.1%
9.5%US$260.00US$165.00n/a20
Aug ’23US$184.98
US$228.40
+23.5%
9.7%US$260.00US$165.00n/a20
Jul ’23US$197.92
US$229.90
+16.2%
8.3%US$253.00US$185.00n/a20
Jun ’23US$208.64
US$229.85
+10.2%
8.4%US$253.00US$185.00n/a20
May ’23US$206.45
US$231.68
+12.2%
8.5%US$253.00US$185.00n/a19
Apr ’23US$216.55
US$223.26
+3.1%
7.5%US$240.00US$176.00n/a19
Mar ’23US$199.54
US$222.16
+11.3%
8.3%US$240.00US$176.00n/a19
Feb ’23US$199.87
US$215.53
+7.8%
8.2%US$240.00US$176.00n/a19
Jan ’23US$193.31
US$211.95
+9.6%
8.7%US$240.00US$172.00US$220.6019
Dec ’22US$175.14
US$211.95
+21.0%
8.7%US$240.00US$172.00US$218.3219
Nov ’22US$192.31
US$208.41
+8.4%
8.5%US$231.00US$172.00US$213.4817
Oct ’22US$175.41
US$192.31
+9.6%
8.5%US$231.00US$160.00US$181.8816
Sep ’22US$183.02
US$190.94
+4.3%
9.0%US$231.00US$153.00US$192.1417
Aug ’22US$168.74
US$187.47
+11.1%
7.8%US$210.00US$153.00US$184.9817
Jul ’22US$161.82
US$181.82
+12.4%
9.0%US$210.00US$142.00US$197.9217
Jun ’22US$171.49
US$180.41
+5.2%
9.6%US$210.00US$142.00US$208.6417
May ’22US$171.59
US$179.59
+4.7%
9.9%US$210.00US$142.00US$206.4517
Apr ’22US$158.99
US$175.88
+10.6%
10.1%US$210.00US$142.00US$216.5517
Mar ’22US$167.36
US$171.11
+2.2%
8.2%US$190.00US$142.00US$199.5419
Feb ’22US$148.04
US$165.58
+11.8%
8.8%US$182.00US$136.00US$199.8719
Jan ’22US$153.92
US$158.58
+3.0%
7.9%US$180.00US$136.00US$193.3119

Analyst Forecast: Target price is less than 20% higher than the current share price.


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