Employers Holdings Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 EIG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EIG ($48.2) is trading below our estimate of fair value ($134.22)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

EIG 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/Revenue1.3x
Enterprise Value/EBITDA7x
PEG Ratio-0.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for EIG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19x
SAFT Safety Insurance Group
23.7xn/aUS$1.2b
HCI HCI Group
7.9x1.2%US$1.2b
IGIC International General Insurance Holdings
7.8x11.4%US$864.2m
BOW Bowhead Specialty Holdings
36.7x35.5%US$955.6m
EIG Employers Holdings
10x-13.0%US$1.2b

Price-To-Earnings vs Peers: EIG is good value based on its Price-To-Earnings Ratio (10x) compared to the peer average (19x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.9%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a8.9%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: EIG is good value based on its Price-To-Earnings Ratio (10x) compared to the US Insurance industry average (13.9x).


Price to Earnings Ratio vs Fair Ratio

What is EIG'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.

EIG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10x
Fair PE Ratio10.1x

Price-To-Earnings vs Fair Ratio: EIG is good value based on its Price-To-Earnings Ratio (10x) compared to the estimated Fair Price-To-Earnings Ratio (10.1x).


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 EIG forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$48.20
US$52.50
+8.9%
4.8%US$55.00US$50.00n/a2
Oct ’25US$47.99
US$52.50
+9.4%
4.8%US$55.00US$50.00n/a2
Sep ’25US$47.95
US$52.50
+9.5%
4.8%US$55.00US$50.00n/a2
Aug ’25US$46.30
US$52.50
+13.4%
4.8%US$55.00US$50.00n/a2
Jul ’25US$42.87
US$52.50
+22.5%
4.8%US$55.00US$50.00n/a2
Jun ’25US$42.18
US$52.50
+24.5%
4.8%US$55.00US$50.00n/a2
May ’25US$43.10
US$52.50
+21.8%
4.8%US$55.00US$50.00n/a2
Apr ’25US$44.77
US$52.50
+17.3%
4.8%US$55.00US$50.00n/a2
Mar ’25US$45.00
US$52.50
+16.7%
4.8%US$55.00US$50.00n/a2
Feb ’25US$40.83
US$49.00
+20.0%
8.2%US$53.00US$45.00n/a2
Jan ’25US$39.40
US$49.00
+24.4%
8.2%US$53.00US$45.00n/a2
Dec ’24US$38.56
US$49.00
+27.1%
8.2%US$53.00US$45.00n/a2
Nov ’24US$38.54
US$50.50
+31.0%
5.0%US$53.00US$48.00n/a2
Oct ’24US$39.95
US$50.50
+26.4%
5.0%US$53.00US$48.00US$47.992
Sep ’24US$39.40
US$50.50
+28.2%
5.0%US$53.00US$48.00US$47.952
Aug ’24US$38.45
US$50.50
+31.3%
5.0%US$53.00US$48.00US$46.302
Jul ’24US$37.41
US$50.50
+35.0%
5.0%US$53.00US$48.00US$42.872
Jun ’24US$36.25
US$50.50
+39.3%
5.0%US$53.00US$48.00US$42.182
May ’24US$40.36
US$50.50
+25.1%
5.0%US$53.00US$48.00US$43.102
Apr ’24US$41.69
US$50.50
+21.1%
5.0%US$53.00US$48.00US$44.772
Mar ’24US$44.27
US$51.50
+16.3%
2.9%US$53.00US$50.00US$45.002

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


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