Using the industry peer median P/E multiple (trailing + forward), The Hartford Financial Services Group, Inc. (HIG) has a fair value of $165.97 based on 3 comparable companies in the Insurance - Diversified industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| The Hartford Financial Services Group, Inc.HIG | 38,635 | 10.1x | 13.5x |
| Berkshire Hathaway Inc.BRK-B | 1,028,234 | 15.4x | 24.0x |
| American International Group, Inc.AIG | 40,247 | 13.7x | 14.8x |
| Arch Capital Group Ltd.ACGL | 34,092 | 8.1x | 10.7x |
| Industry Median | 13.7x | 14.8x | |
| (*) Profit after tax | 3,836 | 2,870 | |
| Equity Value | 52,694 | 42,406 | |
| (/) Outstanding shares | 287 | 287 | |
| Fair Price | $184 | $148 | |
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.