Chubb's stock looks 46.9% undervalued based on an Excess Returns intrinsic value estimate of about $662 per share, even as its price-to-earnings multiple of 12.1 times aligns with the insurance industry average. The Excess Returns model starts with a book value of $189.93 per share and a 13.40% return on equity, yielding stable earnings of $30.46 per share and an excess return of $14.72 per share over the cost of equity. That supports the $662 intrinsic value, well above the current price of $351.73. However, the fair P/E ratio suggested by the model is 11.4 times, slightly below where Chubb trades, and the peer group average is lower at 8.8 times, indicating the stock is roughly fairly valued on earnings. The mixed picture comes as Chubb expands into complex risks like a $400 million marine war risk facility, which may affect how investors price the company's cash flow.
Chubb LtdExcess Returns model suggests 46.9% undervaluation with intrinsic value $662 vs current $351.73