The Hanover Insurance Group Inc
NYSE: THG · FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY
Updated 2026-04-29
The Hanover Insurance Group Inc (THG) Stock Valuation Analysis
Fair value estimate, historical valuation range, and quality signals for THG.
Valued
Fundamentals support the current valuation. Strong combination of growth, quality, and price.
THG historical valuation range
Where current P/E sits in THG's own 5Y range.
THG intrinsic value (DCF)
DCF-based fair value estimate vs current market price.
Standard discounted cash flow models produce unreliable output for unprofitable or near-breakeven companies. Revenue-based multiples such as P/S and EV/Sales, combined with the historical valuation position above, give a more reliable read for this stock.
Intrinsic value calculated using discounted cash flow (DCF) model based on projected free cash flows, discount rate, and terminal growth assumptions. A positive margin of safety indicates the current price is below estimated fair value, providing a cushion against estimation error.
THG valuation signals
Quick-read green flags, caution flags, and risks based on current metrics.
P/E Ratio — History
Current: 9.80x
P/S Ratio — History
Current: 0.95x
Is THG overvalued in 2026?
The Hanover Insurance Group Inc (THG) currently trades at $177.51 per share with a market capitalization of $6,246,364,000.00. Based on our multi-factor framework, the stock looks attractively valued with a Smart Value Score of 76/100. This score blends growth quality, financial health, and price attractiveness into a single institutional-grade read.
The stock trades at a P/E ratio of 9.8x, below its 5-year median of 11.4x. The PEG ratio of 0.34 suggests earnings growth is outpacing the multiple, a classic sign of undervaluation.
Looking at its own history, THG is currently trading cheaper than 86% of the last 5Y on P/E. This places it in the 14th percentile of its historical range, a level that has historically coincided with attractive entry points.
A standard DCF model does not produce reliable output for THG under current conditions. For unprofitable or near-breakeven companies, revenue-based multiples such as EV/Sales and historical P/S percentile are more informative than intrinsic value calculations.
The Piotroski F-Score of 6/9 puts financial quality in a middling range, neither a standout strength nor an obvious red flag.
Bottom line: THG looks attractively valued on our framework, with a Smart Value Score of 76/100. The combination of reasonable price, healthy growth, and quality fundamentals makes it worth serious consideration.
Frequently asked questions
Is THG overvalued in 2026?
Based on a Smart Value Score of 76/100, THG is not overvalued. Fundamentals support the current price and offer reasonable margin of safety.
What is THG's fair value?
Standard DCF is unreliable for THG due to its current profitability profile. Revenue-based approaches such as EV/Sales or historical P/S percentile are more informative for this stock.
What P/E ratio does THG trade at?
THG trades at a P/E of 9.8x on trailing twelve-month earnings, compared to its 5-year median of 11.4x.
Is THG a buy based on valuation?
WallStSmart does not issue buy or sell recommendations. Our Smart Value Score of 76/100 reflects the combined read on growth, quality, and price. The profile skews favorable for long-term accumulation.
How does THG's valuation compare to its history?
On P/E, THG currently sits in the 14th percentile of its own 5Y range. That is historically cheap relative to where it has traded over the period.
What is THG's Smart Value Score?
THG's Smart Value Score is 76/100. The Smart Value Score is a proprietary WallStSmart metric blending growth quality, financial health, and valuation attractiveness into a single 0-100 read. Scores above 75 are rare and indicate strong multi-factor alignment.