PE ratio relative to earnings growth — is the valuation justified?
2.76
PEG Ratio
PEG ratio is generally unreliable for Financial Services companies — earnings are driven by interest margins and provisions
PEG ratio is generally unreliable for Financial Services companies
2.76
Growth Rate Source
Good Data Quality5-Year EPS CAGR
Current Price
$51.15
TTM EPS
$4.28
P/E Ratio
11.95
Growth Rate
4.3%
5-Year EPS CAGR
Sector
Financial Services
Insurance - Property & Casualty
Calculated
8/28/2026
10:16:23 PM
Peer Comparison
Sample Size
2 peers
Industry Median PEG
0.83
25th Percentile
0.77
75th Percentile
0.89
HMN PEG (2.76) vs Industry Median (0.83): 234% premium
Symbol
Company
PEG
P/E
Growth
vs HMN
THG
HANOVER INSURANCE GROUP, INC.
0.77
10.9
14.2%
-72%
SIGI
SELECTIVE INSURANCE GROUP INC
0.89
11.5
12.8%
-68%
How to Interpret PEG Ratio
PEG < 1.0 — Potentially Undervalued. The stock may be priced below its earnings growth rate, suggesting a potential buying opportunity.
PEG 1.0–2.0 — Fairly Valued. The stock price is roughly in line with its earnings growth. A PEG of 1.0 is often considered "fair value."
PEG > 2.0 — Potentially Overvalued. The stock may be priced above what its earnings growth justifies.
Limitations:PEG ratios are less reliable for financial firms (earnings driven by interest margins), companies with negative/zero earnings growth, and hypergrowth companies (>100% growth) where the ratio may appear misleadingly low. Always use PEG alongside other valuation metrics.
