Hanover Insurance Valuation

THG Stock  USD 136.17  0.63  0.46%   
At this time, the firm appears to be undervalued. Hanover Insurance retains a regular Real Value of $145.51 per share. The prevalent price of the firm is $136.17. Our model calculates the value of Hanover Insurance from evaluating the firm fundamentals such as Return On Asset of 0.0033, current valuation of 5.32 B, and Return On Equity of 0.014 as well as inspecting its technical indicators and probability of bankruptcy. In general, most investors encourage locking in undervalued assets and disposing overvalued assets since, at some point, asset prices and their ongoing real values will come together.
Price Book
1.9692
Enterprise Value
5.3 B
Price Sales
0.8101
Forward PE
13.1926
Trailing PE
144.1915
Undervalued
Today
136.17
Please note that Hanover Insurance's price fluctuation is very steady at this time. Calculation of the real value of Hanover Insurance is based on 3 months time horizon. Increasing Hanover Insurance's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for The Hanover Insurance is useful when determining the fair value of the Hanover stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Hanover Insurance. Since Hanover Insurance is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Hanover Stock. However, Hanover Insurance's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  136.17 Real  145.51 Target  130.33 Hype  135.8 Naive  137.48
The real value of Hanover Stock, also known as its intrinsic value, is the underlying worth of Hanover Insurance Company, which is reflected in its stock price. It is based on Hanover Insurance's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Hanover Insurance's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Hanover Insurance's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
122.55
Downside
145.51
Real Value
146.60
Upside
Estimating the potential upside or downside of The Hanover Insurance helps investors to forecast how Hanover stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Hanover Insurance more accurately as focusing exclusively on Hanover Insurance's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
2.452.712.97
Details
Hype
Prediction
LowEstimatedHigh
134.71135.80136.89
Details
Potential
Annual Dividend
LowForecastedHigh
1.841.861.89
Details
7 Analysts
Consensus
LowTarget PriceHigh
118.60130.33144.67
Details

Hanover Insurance Investments

(239.93 Million)

Hanover Insurance Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Hanover Insurance's current stock value. Our valuation model uses many indicators to compare Hanover Insurance value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Hanover Insurance competition to find correlations between indicators driving Hanover Insurance's intrinsic value. More Info.
The Hanover Insurance is rated below average in price to earning category among related companies. It is rated below average in five year return category among related companies reporting about  0.11  of Five Year Return per Price To Earning. The ratio of Price To Earning to Five Year Return for The Hanover Insurance is roughly  8.85 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Hanover Insurance by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Hanover Insurance's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Hanover Insurance's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Hanover Insurance's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Hanover Insurance and how it compares across the competition.

About Hanover Insurance Valuation

The stock valuation mechanism determines the current worth of The Hanover Insurance on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of The Hanover Insurance. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Hanover Insurance based exclusively on its fundamental and basic technical indicators. By analyzing Hanover Insurance's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Hanover Insurance's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Hanover Insurance. We calculate exposure to Hanover Insurance's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Hanover Insurance's related companies.
Last ReportedProjected for 2024
Gross ProfitB4.3 B
Pretax Profit Margin 0.01  0.01 
Operating Profit Margin 0.0003  0.0003 
Net Profit Margin 0.01  0.01 
Gross Profit Margin 0.90  0.80 

Hanover Insurance Quarterly Retained Earnings

2.91 Billion

8 Steps to conduct Hanover Insurance's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Hanover Insurance's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Hanover Insurance's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Hanover Insurance's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Hanover Insurance's revenue streams: Identify Hanover Insurance's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Hanover Insurance's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Hanover Insurance's growth potential: Evaluate Hanover Insurance's management, business model, and growth potential.
  • Determine Hanover Insurance's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Hanover Insurance's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Hanover Insurance's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Hanover Insurance's value is low or high relative to the company's performance and growth projections. Determining the market value of Hanover Insurance can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Hanover Insurance represents a small ownership stake in the entity. As a stockholder of Hanover, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Hanover Insurance Dividends Analysis For Valuation

The Hanover Insurance's current Dividend Payout Ratio is estimated to increase to 3.49, while Dividends Paid is forecasted to increase to (111.3 M). . The Hanover Insurance's current Price Earnings Ratio is estimated to increase to 128.94, while Retained Earnings are projected to decrease to roughly 1.5 B.
Last ReportedProjected for 2024
Dividends Paid-117.2 M-111.3 M
Dividend Yield 0.03  0.01 
Dividend Payout Ratio 3.32  3.49 
Dividend Paid And Capex Coverage Ratio 3.43  3.26 
There are various types of dividends Hanover Insurance can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Hanover shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from The Hanover Insurance directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Hanover pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Hanover Insurance by the value of the dividends paid out.

Hanover Insurance Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Hanover Insurance does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding36.1 M
Quarterly Earnings Growth Y O Y16.105
Forward Price Earnings13.1926

Hanover Insurance Current Valuation Indicators

Valuation refers to the process of determining the present value of The Hanover Insurance and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Hanover we look at many different elements of the entity such as Hanover's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Hanover Insurance's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Hanover Insurance's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Hanover Insurance, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Hanover Insurance's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Hanover Insurance's worth.
When determining whether Hanover Insurance is a strong investment it is important to analyze Hanover Insurance's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Hanover Insurance's future performance. For an informed investment choice regarding Hanover Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in The Hanover Insurance. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate.
Note that the Hanover Insurance information on this page should be used as a complementary analysis to other Hanover Insurance's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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When running Hanover Insurance's price analysis, check to measure Hanover Insurance's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hanover Insurance is operating at the current time. Most of Hanover Insurance's value examination focuses on studying past and present price action to predict the probability of Hanover Insurance's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hanover Insurance's price. Additionally, you may evaluate how the addition of Hanover Insurance to your portfolios can decrease your overall portfolio volatility.
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Is Hanover Insurance's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Hanover Insurance. If investors know Hanover will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Hanover Insurance listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
16.105
Dividend Share
3.28
Earnings Share
0.94
Revenue Per Share
167.885
Quarterly Revenue Growth
0.034
The market value of Hanover Insurance is measured differently than its book value, which is the value of Hanover that is recorded on the company's balance sheet. Investors also form their own opinion of Hanover Insurance's value that differs from its market value or its book value, called intrinsic value, which is Hanover Insurance's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Hanover Insurance's market value can be influenced by many factors that don't directly affect Hanover Insurance's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Hanover Insurance's value and its price as these two are different measures arrived at by different means. Investors typically determine if Hanover Insurance is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Hanover Insurance's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.