Using the industry peer median P/E multiple (trailing + forward), Erie Indemnity Company (ERIE) has a fair value of $170.83 based on 5 comparable companies in the Insurance - Brokers industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Erie Indemnity CompanyERIE | 12,859 | 23.0x | 39.8x |
| Marsh & McLennan Companies, Inc.MRSH | 85,406 | 20.7x | 20.1x |
| Aon plcAON | 69,600 | 19.0x | 21.0x |
| Arthur J. Gallagher & Co.AJG | 54,336 | 36.8x | 21.1x |
| Willis Towers Watson Public Limited CompanyWTW | 27,487 | 17.7x | 17.2x |
| Brown & Brown, Inc.BRO | 22,237 | 20.6x | 17.3x |
| Industry Median | 20.6x | 20.1x | |
| (*) Profit after tax | 559 | 323 | |
| Equity Value | 11,528 | 6,472 | |
| (/) Outstanding shares | 53 | 53 | |
| Fair Price | $219 | $123 | |
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.