Using the industry peer median P/E multiple (trailing + forward), Chubb Limited (CB) has a fair value of $332.81 based on 5 comparable companies in the Insurance - Property & Casualty industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Chubb LimitedCB | 128,666 | 12.6x | 14.7x |
| Bank of America CorporationBAC | 353,404 | 12.7x | 12.7x |
| The Progressive CorporationPGR | 119,537 | 10.6x | 15.1x |
| Interactive Brokers Group, Inc.IBKR | 114,352 | 29.8x | 31.1x |
| KKR & Co. Inc.KKR | 80,877 | 38.8x | 18.4x |
| The Travelers Companies, Inc.TRV | 64,900 | 10.6x | 15.3x |
| Industry Median | 12.7x | 15.3x | |
| (*) Profit after tax | 10,310 | 8,725 | |
| Equity Value | 130,616 | 133,304 | |
| (/) Outstanding shares | 397 | 397 | |
| Fair Price | $329 | $336 | |
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.