The Hanover Insurance Group Inc (THG) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
The Hanover Insurance Group Inc stock (THG) is currently trading at $172.23. The Hanover Insurance Group Inc PE ratio is 9.51. The Hanover Insurance Group Inc PS ratio (Price-to-Sales) is 0.92. Analyst consensus price target for THG is $199.75. WallStSmart rates THG as Buy.
- THG PE ratio analysis and historical PE chart
- THG PS ratio (Price-to-Sales) history and trend
- THG intrinsic value — DCF, Graham Number, EPV models
- THG stock price prediction 2025 2026 2027 2028 2029 2030
- THG fair value vs current price
- THG insider transactions and insider buying
- Is THG undervalued or overvalued?
- The Hanover Insurance Group Inc financial analysis — revenue, earnings, cash flow
- THG Piotroski F-Score and Altman Z-Score
- THG analyst price target and Smart Rating
The Hanover Insurance Group Inc
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THG Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · The Hanover Insurance Group Inc (THG)
THG trades at a significant discount to its Graham intrinsic value of $700.16, offering a 75% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
The Hanover Insurance Group Inc (THG) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, return on equity, price/sales. Overall metrics suggest strong investment potential with favorable risk/reward.
The Hanover Insurance Group Inc (THG) Key Strengths (6)
Growing significantly faster than its price suggests
Paying less than $1 for every $1 of annual revenue
91.38% of shares held by major funds and institutions
Every $100 of equity generates $21 in profit
Trading at 1.66x book value, attractively priced
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
The Hanover Insurance Group Inc (THG) Areas to Watch (4)
Modest revenue growth at 5.50%
Decent operational efficiency, solid but not exceptional
Solid earnings growth at 19.90%
Decent profitability, keeps $10 per $100 revenue
The Hanover Insurance Group Inc (THG) Detailed Analysis Report
Overall Assessment
This company scores 76/100 in our Smart Analysis, earning a B+ grade. Out of 10 metrics analyzed, 6 register as strengths (avg 9.0/10) while 4 fall into concern territory (avg 5.5/10). All four categories (Growth, Profitability, Valuation, and Quality) show healthy scores, indicating broadly sound fundamentals.
The Bull Case
The strongest argument centers on PEG Ratio, Price/Sales, Institutional Own.. Valuation metrics including PEG Ratio (0.34), Price/Sales (0.92), Price/Book (1.66) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 20.60%.
The Bear Case
The primary concerns are Revenue Growth, Operating Margin, EPS Growth. Growth concerns include Revenue Growth at 5.50%, EPS Growth at 19.90%, which may limit upside. Profitability pressure is visible in Operating Margin at 16.30%, Profit Margin at 10.10%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 20.60% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 5.50% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate risk investment. The weight of evidence leans positive, with more strengths than concerns. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
The combination of PEG Ratio and Price/Sales makes a compelling case at current levels. The key risk is Revenue Growth, but the overall fundamental picture is positive with a clear path to maintaining or improving the current B+ grade.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
THG Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
THG's Price-to-Sales ratio of 0.92x trades 56% above its historical average of 0.59x (89th percentile), historically expensive. The current valuation is 11% below its historical high of 1.03x set in Jul 2018, and 196% above its historical low of 0.31x in Jan 2013.
WallStSmart Analysis Synopsis
Data-driven financial summary for The Hanover Insurance Group Inc (THG) · FINANCIAL SERVICES › INSURANCE - PROPERTY & CASUALTY
The Big Picture
The Hanover Insurance Group Inc operates as a stable business with moderate growth and solid fundamentals. Revenue reached 6.6B with 6% growth year-over-year. Profit margins of 10.1% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 2060.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 377M in free cash flow and 378M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can The Hanover Insurance Group Inc push profit margins above 15% as the business scales?
Sector dynamics: monitor INSURANCE - PROPERTY & CASUALTY industry trends, competitive moves, and regulatory changes that could impact The Hanover Insurance Group Inc.
Bottom Line
The Hanover Insurance Group Inc offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About The Hanover Insurance Group Inc(THG)
NYSE
FINANCIAL SERVICES
INSURANCE - PROPERTY & CASUALT...
USA
Hanover Insurance Group, Inc. offers a variety of property and casualty insurance products and services in the United States. The company is headquartered in Worcester, Massachusetts.