The Hanover Insurance Group (THG) Fair Value & Analysis
Financial Services · US · Market cap $7.5B
The Hanover Insurance Group
THG · US
Fair value as of: Aug 13, 2026
From 4 valuation models · updated yesterday
Fair value updated Aug 13, 2026, revised from $246.16 to $176.90 (−28.1%) since Jul 16, 2026. Share price +4.2% over the past month.
A solid business, but screening 21% overvalued on our models.
What matters now
- Solid but not exceptional quality (66/100) and above fair value, neither a clear bargain nor a standout compounder.
- For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range $97.17 – $232.63 · fair‑value band $132.67 – $221.13 · the $223.19 price screens above the $176.90 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
The Hanover Insurance Group (THG) currently trades at $223.19, while our model-based Fair Value estimate is $176.90, implying the stock looks roughly 20.7% overvalued today. The Quality Score stands at 66/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).
Over the trailing twelve months, The Hanover Insurance Group generated revenue of $6.7B at a net margin of 10.8%. Revenue grew 6.1% year over year. It earns a return on equity of 21.8%. Net debt stands at $95.6M. Fundamentals as of Aug 13, 2026
Our scenario range runs from $132.67 (bear case) to $221.13 (bull case); at $223.19, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 41% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 2% fair-value upside, at -21%, THG screens richer than that median.
Fair Value models
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.
All 4 models by family
Widest divergence: Economic Profit ($156.97) versus Asset-Based ($68.39). Highest evidence: Residual Income (76).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 66 · Market factors (momentum, volatility) 81
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
About the company
The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services for individuals and businesses in the United States. It operates in four segments: Core Commercial, Specialty, Personal Lines, and Other.
Full company description
The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services for individuals and businesses in the United States. It operates in four segments: Core Commercial, Specialty, Personal Lines, and Other. The company offers commercial multiple peril, commercial automobile, workers' compensation, and other core commercial coverage; and professional and executive lines, marine, and surety and other, as well as specialty property and casualty products comprising Hanover program business, excess and surplus business, Hanover specialty industrial, and specialty general liability business coverage. It also provides personal automobile; and homeowners and other personal lines, including residences and personal property, liability claims, personal umbrella, inland marine, fire, personal watercraft, personal cyber, and other miscellaneous coverages. In addition, the company offers insurance products for collector cars, motorcycles, off-road vehicles, condominiums, valuable items, business owners, international, and management and professional liability; and for the construction, cultural and educational institutions, financial intuitions, healthcare, human services, life sciences, manufacturing, professional services, real estate, retail, technology, and wholesale and distribution industries. It markets its products and services through independent agents and brokers. The company was formerly known as Allmerica Financial Corp. and changed its name to The Hanover Insurance Group, Inc. in December 2005. The Hanover Insurance Group, Inc. was founded in 1852 and is headquartered in Worcester, Massachusetts.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
The Hanover Insurance Group reported revenue of $6.6B in FY2025 versus $5.2B in FY2021, a compound +6.3%/yr. Reported net income was $663M in FY2025, compounding +11.9%/yr from FY2021.
of which total revenue +3.2 pp · buybacks/dilution +2.4 pp
Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).
THG screens 21% overvalued. Compare with The Progressive Corporation →
Recent news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- Hanover Insurance Group (THG) is a Great Momentum Stock: Should You Buy?
- Is The Hanover Insurance Group (THG) Stock Undervalued Right Now?
Peer Group
Insurance - Property & Casualty · 119 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs Insurance - Property & Casualty median · lower = cheaper
Snowflake
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
Insider activity: 46/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.
Similar stocks
10 more Insurance - Property & Casualty stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| The Progressive Corporation PGR | $207.37 | $160.25 | -23% |
| Chubb Limited CB | $343.33 | $234.73 | -32% |
| The Travelers Companies, Inc TRV | $370.16 | $274.42 | -26% |
| The Allstate Corporation ALL | $255.84 | $316.11 | +24% |
| The People's Insurance Company 601319 | ¥6.98 | ¥11.61 | +66% |
| PICC Property and Casualty Company 2328 | HK$15.52 | HK$22.28 | +44% |
| Intact Financial Corporation IFC | C$274.14 | C$167.46 | -39% |
| Fairfax Financial Holdings FFH | C$2,293 | C$2,291 | -0% |
| Samsung Fire & Marine Insurance Co 000810 | 628,000 KRW | 698,407 KRW | +11% |
| Powszechny Zaklad Ubezpieczen SA PZU | 72.14 PLN | 73.80 PLN | +2% |
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Frequently asked questions
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.
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