What is The Hanover Insurance Group, Inc. (THG)'s PEG ratio?

The Hanover Insurance Group, Inc. (THG) has a PEG ratio of 0.75 (Potentially Undervalued), based on a PE ratio of 10.6 and expected EPS growth of 14.2% (5-Year EPS CAGR).

Is THG undervalued based on its PEG ratio?

A PEG below 1.0 is conventionally read as potentially undervalued, 1.0–2.0 as fairly valued, and above 2.0 as potentially overvalued relative to growth. At 0.75, The Hanover Insurance Group, Inc. (THG) screens as "Potentially Undervalued". PEG is one signal, not investment advice — see the full DCF fair value at evidinvest.com/valuation/THG.

The Hanover Insurance Group, Inc. (THG) PEG Ratio

Potentially Undervalued

PE ratio relative to earnings growth — is the valuation justified?

0.75

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

0.75

Growth Rate Source

Good Data Quality5-Year EPS CAGR

Current Price

$221.61

TTM EPS

$20.81

P/E Ratio

10.65

Growth Rate

14.2%

5-Year EPS CAGR

Sector

Financial Services

Insurance - Property & Casualty

Calculated

8/18/2026

12:46:53 PM

Peer Comparison

Sample Size

11 peers

Industry Median PEG

0.65

25th Percentile

0.30

75th Percentile

2.55

THG PEG (0.75) vs Industry Median (0.65): 15% premium

Symbol	Company	PEG	P/E	Growth	vs THG
WRB-PE	W. R. Berkley Corporation 5.70% SB DB 2058	0.15	4.2	28.9%	-81%
WTM	White Mountains Insurance Group, Ltd.	0.30	4.1	13.6%	-60%
ALL	The Allstate Corporation	0.30	5.2	17.1%	-60%
CB	Chubb Limited	0.44	12.0	27.1%	-41%
TRV	The Travelers Companies, Inc.	0.46	9.8	21.4%	-39%

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.

The Hanover Insurance Group, Inc. (THG) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on THG

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The Hanover Insurance Group, Inc. (THG) PEG Ratio

Peer Comparison

How to Interpret PEG Ratio

More on THG

Compare with peers

Explore