Is Progressive Corp (PGR) Stock Trading Below Fair Value?

InvestorsObserver gives Progressive Corp (PGR) a strong valuation score of 92 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. PGR currently holds a better value than 92% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

PGR gets a 92 Valuation Rank today. Find out what this means to you and get the rest of the rankings on PGR!

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Metrics Analysis

PGR's trailing-12-month Price to Earnings (PE) ratio of 117.9 puts it above the historical average of roughly 15. PGR is a poor value at its current trading price as investors are paying more than what its worth in relation to the company's earnings. PGR's trailing-12-month earnings per share (EPS) of 1.17 does not justify what it is currently trading at in the market. Trailing PE ratios, however, do not factor in a company's projected growth rate, resulting in some firms having high PE ratios due to high growth potentially enticing investors even if current earnings are low. PGR's 12-month-forward PE to Growth (PEG) ratio of 0.86 is considered a roughly average value as the market is valuing PGR right in line with its projected earnings growth. PGR's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

PGR' has a adequate valuation at its current share price on account of a fairly valued PEG ratio despite strong growth. PGR's PE and PEG are around the market average leading to a average valuation score. Click Here to get the full Report on Progressive Corp (PGR) stock.