We’ve recently updated our valuation analysis.

Lemonade Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book 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 LMND?

Other financial metrics that can be useful for relative valuation.

LMND 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/Revenue4.1x
Enterprise Value/EBITDA-3x
PEG Ration/a

Price to Book Ratio vs Peers

How does LMND's PB Ratio compare to its peers?

The above table shows the PB ratio for LMND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average1.5x
PLMR Palomar Holdings
3.4x29.0%US$1.3b
STC Stewart Information Services
1x-16.8%US$1.3b
PRA ProAssurance
1x92.9%US$1.0b
ARGO Argo Group International Holdings
0.8x115.0%US$950.0m
LMND Lemonade
1.2x8.7%US$1.0b

Price-To-Book vs Peers: LMND is good value based on its Price-To-Book Ratio (1.2x) compared to the peer average (1.5x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.1%
n/an/an/a

Price-To-Book vs Industry: LMND is good value based on its Price-To-Book Ratio (1.2x) compared to the US Insurance industry average (1.4x)


Price to Book Ratio vs Fair Ratio

What is LMND's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LMND PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio1.2x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate LMND's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate LMND's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate LMND's fair value for valuation analysis.


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 LMND forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$15.15
US$20.06
+32.4%
46.0%US$40.00US$10.00n/a9
Jan ’24US$13.68
US$22.25
+62.6%
37.2%US$40.00US$14.00n/a8
Dec ’23US$18.99
US$22.89
+20.5%
35.0%US$40.00US$14.00n/a9
Nov ’23US$24.04
US$25.63
+6.6%
33.1%US$40.00US$14.00n/a8
Oct ’23US$21.18
US$25.44
+20.1%
34.0%US$40.00US$14.00n/a8
Sep ’23US$22.87
US$25.44
+11.2%
34.0%US$40.00US$14.00n/a8
Aug ’23US$20.51
US$22.94
+11.8%
36.7%US$40.00US$14.00n/a8
Jul ’23US$18.73
US$29.06
+55.2%
42.8%US$56.00US$15.50n/a8
Jun ’23US$20.79
US$27.50
+32.3%
45.6%US$56.00US$15.00n/a9
May ’23US$20.86
US$39.00
+87.0%
58.2%US$95.00US$21.00n/a9
Apr ’23US$28.04
US$39.00
+39.1%
58.2%US$95.00US$21.00n/a9
Mar ’23US$24.27
US$44.11
+81.8%
56.0%US$95.00US$21.00n/a9
Feb ’23US$34.12
US$55.33
+62.2%
42.1%US$95.00US$25.00n/a9
Jan ’23US$42.11
US$63.33
+50.4%
34.5%US$95.00US$25.00US$13.689
Dec ’22US$45.05
US$63.33
+40.6%
34.5%US$95.00US$25.00US$18.999
Nov ’22US$65.92
US$75.00
+13.8%
40.1%US$130.00US$26.00US$24.048
Oct ’22US$64.71
US$78.50
+21.3%
38.6%US$130.00US$26.00US$21.188
Sep ’22US$78.85
US$78.50
-0.4%
38.6%US$130.00US$26.00US$22.878
Aug ’22US$87.06
US$82.71
-5.0%
37.0%US$130.00US$27.00US$20.517
Jul ’22US$112.75
US$80.29
-28.8%
38.3%US$130.00US$27.00US$18.737
Jun ’22US$91.72
US$80.29
-12.5%
38.3%US$130.00US$27.00US$20.797
May ’22US$90.40
US$92.29
+2.1%
39.7%US$134.00US$25.00US$20.867
Apr ’22US$95.58
US$92.86
-2.8%
38.3%US$134.00US$29.00US$28.047
Mar ’22US$132.43
US$86.17
-34.9%
46.6%US$163.00US$45.00US$24.276
Feb ’22US$149.20
US$86.17
-42.2%
46.6%US$163.00US$45.00US$34.126
Jan ’22US$122.50
US$73.17
-40.3%
32.3%US$105.00US$45.00US$42.116

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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