What do the Fundamentals Predict for Progressive Corp (PGR) Stock?

InvestorsObserver gives Progressive Corp (PGR) a weak valuation score of 24 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 24% 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 24 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 10 puts it around the historical average of roughly 15. PGR is a average value at its current trading price as investors are paying around what its worth in relation to the company's earnings. PGR's trailing-12-month earnings per share (EPS) of 9.29 does 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 has a 12 month forward PE to Growth (PEG) ratio of 3.54. Markets are overvaluing PGR in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 9.28999996's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

PGR' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. PGR's PE and PEG are worse than the market average leading to a below average valuation score. Click Here to get the full Report on Progressive Corp (PGR) stock.