Using the industry peer median P/E multiple (trailing + forward), The Progressive Corporation (PGR) has a fair value of $222.89 based on 4 comparable companies in the Insurance - Property & Casualty industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| The Progressive CorporationPGR | 119,987 | 10.6x | 15.1x |
| Bank of America CorporationBAC | 353,404 | 12.7x | 12.7x |
| Chubb LimitedCB | 126,579 | 12.6x | 14.7x |
| Interactive Brokers Group, Inc.IBKR | 114,352 | 29.8x | 31.1x |
| The Travelers Companies, Inc.TRV | 64,900 | 10.6x | 15.3x |
| Industry Median | 12.6x | 15.0x | |
| (*) Profit after tax | 11,308 | 7,946 | |
| Equity Value | 142,921 | 119,287 | |
| (/) Outstanding shares | 588 | 588 | |
| Fair Price | $243 | $203 | |
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.