Using the industry peer median P/E Multiples multiple (trailing + forward), Root, Inc. (ROOT) has a fair value of $31.54 based on 10 comparable companies in the Insurance - Property & Casualty industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Root, Inc.ROOT | 982 | 25.5x | — |
| Selective Insurance Group, Inc. | 4,669 | 10.4x | 21.4x |
| Capital Southwest Corporation | 1,364 | 15.4x | 8.4x |
| Origin Bancorp, Inc. | 1,315 | 17.7x | 16.1x |
| ProAssurance Corporation | 1,244 | 24.4x | — |
| Safety Insurance Group, Inc. | 1,092 | 10.9x | 14.2x |
| MidCap Financial Investment Corporation | 1,078 | 17.0x | 6.7x |
| Ategrity Specialty Holdings LLC | 978 | 12.7x | 134.2x |
| Universal Insurance Holdings, Inc. | 946 | 5.3x | 19.0x |
| Bowhead Specialty Holdings Inc. | 741 | 14.2x | 13.9x |
| Horizon Technology Finance Corporation | 217 | 4.3x | 3.3x |
| Industry Median | 13.5x | 14.2x | |
| (*) Profit after tax | 40 | ||
| Equity Value | 543 | ||
| (/) Outstanding shares | 17 | ||
| Fair Price | $32 | ||
Using the industry peer median EV/EBITDA multiple (trailing + forward), Root, Inc. (ROOT) has a fair value of $68.87 based on 10 comparable companies in the Insurance - Property & Casualty industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/EBITDA | Forward EV/EBITDA | |
|---|---|---|---|
| Root, Inc.ROOT | 982 | 6.7x | 9.0x |
| Selective Insurance Group, Inc. | 4,669 | 8.3x | 9.5x |
| Capital Southwest Corporation | 1,364 | 26.7x | 24.7x |
| Origin Bancorp, Inc. | 1,315 | 11.3x | 19.5x |
| ProAssurance Corporation | 1,244 | 15.5x | 14.9x |
| Safety Insurance Group, Inc. | 1,092 | 8.4x | 11.5x |
| MidCap Financial Investment Corporation | 1,078 | 15.6x | 14.0x |
| Ategrity Specialty Holdings LLC | 978 | 9.8x | 10.9x |
| Universal Insurance Holdings, Inc. | 946 | 2.2x | 1.7x |
| Bowhead Specialty Holdings Inc. | 741 | 7.3x | 5.2x |
| Horizon Technology Finance Corporation | 217 | 19.4x | 8.4x |
| Industry Median | 10.5x | 11.2x | |
| (*) EBITDA | 74 | 55 | |
| = Enterprise Value | 774 | 618 | |
| (-) Net Debt | -489 | -489 | |
| Equity Value | 1,262 | 1,107 | |
| (/) Outstanding shares | 17 | 17 | |
| Fair Price | $73 | $64 | |
Using the industry peer median EV/Revenue multiple (trailing + forward), Root, Inc. (ROOT) has a fair value of $173.90 based on 10 comparable companies in the Insurance - Property & Casualty industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| Root, Inc.ROOT | 982 | 0.3x | 0.4x |
| Selective Insurance Group, Inc. | 4,669 | 1.0x | 1.2x |
| Capital Southwest Corporation | 1,364 | 13.9x | 12.8x |
| Origin Bancorp, Inc. | 1,315 | 2.1x | 3.7x |
| ProAssurance Corporation | 1,244 | 1.5x | 1.4x |
| Safety Insurance Group, Inc. | 1,092 | 0.9x | 1.2x |
| MidCap Financial Investment Corporation | 1,078 | 10.8x | 9.7x |
| Ategrity Specialty Holdings LLC | 978 | 2.2x | 2.5x |
| Universal Insurance Holdings, Inc. | 946 | 0.4x | 0.3x |
| Bowhead Specialty Holdings Inc. | 741 | 0.9x | 0.7x |
| Horizon Technology Finance Corporation | 217 | 14.3x | 6.2x |
| Industry Median | 1.8x | 2.0x | |
| (*) Revenue | 1,517 | 1,136 | |
| = Enterprise Value | 2,761 | 2,244 | |
| (-) Net Debt | -489 | -489 | |
| Equity Value | 3,250 | 2,733 | |
| (/) Outstanding shares | 17 | 17 | |
| Fair Price | $189 | $159 | |
Using the PEG framework with analyst consensus forward EPS growth of 10.2%, the company has a fair value of $19.59 based on NTM EPS (FY2026) of $1.92. The current PEG ratio is 2.29.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG works well for steady growers with predictable earnings.
| EPS Growth RateForward | 10.2% |
| Adjusted Growth (clamped 8–25%) | 10.2% |
| Fair P/E | 10.2x |
| NTM EPS (FY2026) | $1.92 |
| Fair Value | $19.59 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $2.24 | — | — |
| FY2026E | $1.92 | -14.5% | 3 |
| FY2027E | $2.76 | +44.3% | 5 |
| FY2028E | $3.00 | +8.6% | 3 |
3Y Forward EPS CAGR: 10.2%
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $-521.1M | $-37.62 | — |
| FY2022 | $-297.7M | $-21.11 | — |
| FY2023 | $-147.4M | $-10.24 | — |
| FY2024 | $30.9M | $1.83 | — |
| FY2025 | $40.3M | $2.24 | +22.4% |
4Y Historical EPS CAGR: 22.4%
Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.