The Hanover Insurance Group, Inc. (THG) — Fundamental Analysis & Key Financial Ratios

Kaplio overview: The Hanover Insurance Group, Inc.

Market cap $8B · 52 weeks $168 – $233 (5 % below the high) · P/E 10.3× · 2027 expected P/E 11.2× · Dividend 1.7 % · 5 years rising · Next earnings October 28, 2026 · expected EPS $4.42 · Price as of Oct 4 · accounts published Jul 28.

• Valuation: P/B 2.1× (fairly priced).
• Business: 5-year op. margin 7.0 % (weak).
• Balance sheet: Debt/Equity 0.23 (solid).
• Earnings: 8 of 8 (on track).

What would it be worth at its usual multiples?

At a P/B justified by its ROE del 21,2 % (2.0×) $207 (-6 %); at its peers' median (1.4×) $146 (-34 %). Implied price from applying the reference multiples to today's earnings (or book value, or FFO) per share. Not a fair value: it is where the stock would trade at its usual multiples.

What matters in insurance: 1 of 5 pass

• Op Margin 5y (Combined Ratio proxy) 7.0 %, fails.
• Book Value / Share growth 3.3 %, fails.
• Dividend growth streak 5 años, fails.
• P/B (Price / Book) 2.1×, borderline.
• Debt / Equity 0.23, passes.

Against its peers (reference peers) — The Hanover Insurance Group, Inc.: P/E 10.3×; P/B 2.1×; ROE 21.2 %; $7.6B. RLI Corp. (P/E 11.8×; P/B 2.9×; ROE 22.7 %; $5.1B), Selective Insurance Group, Inc. (P/E 10.6×; P/B 1.4×; ROE 13.9 %; $5.1B), CNA Financial Corporation (P/E 10.2×; P/B 1.1×; ROE 11.0 %; $12.5B).

Expensive or cheap against its last ten fiscal years?

Precio / valor contable at each close: today 2.1× · median 1.7× · minimum 1.1× · maximum 2.5× · cheap below 1.6× · expensive above 2.0×. It has been cheaper than today 85% of the time over its last ten fiscal years.

Dividend

solid · Yield 1.73 % ($3.66 per share in 2025) · Years raising it 5 · 5-year growth +7 % a year · Free cash flow coverage payout 20 % · With $1,000 invested today you'd collect $17.30 a year ($1.44 a month).