Using the industry peer median P/E multiple (trailing + forward), The Allstate Corporation (ALL) has a fair value of $353.20 based on 6 comparable companies in the Insurance - Property & Casualty industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| The Allstate CorporationALL | 54,762 | 5.4x | 12.3x |
| Chubb LimitedCB | 126,579 | 12.6x | 14.7x |
| The Progressive CorporationPGR | 119,537 | 10.6x | 15.1x |
| The Travelers Companies, Inc.TRV | 64,900 | 10.6x | 15.3x |
| W. R. Berkley CorporationWRB | 24,743 | 14.6x | 16.1x |
| Cincinnati Financial CorporationCINF | 24,460 | 10.4x | 11.4x |
| Loews CorporationL | 22,121 | 13.4x | 30.2x |
| Industry Median | 11.6x | 15.2x | |
| (*) Profit after tax | 10,282 | 4,451 | |
| Equity Value | 119,366 | 67,618 | |
| (/) Outstanding shares | 265 | 265 | |
| Fair Price | $451 | $255 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.