Is Progressive Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Progressive Corp. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 26, a Price to Book Value of 7.71, and a PEG Ratio of 0.51. In comparison to peers, Progressive Corp. has a P/E of 18.83, while The Travelers Cos., Inc. stands at 40.11, highlighting a significant difference in valuation approaches within the industry.
Despite recent underperformance, with a 1-year return of -6.08% compared to the S&P 500's 17.14%, Progressive Corp. has shown strong growth over longer periods, achieving a 3-year return of 93.77% versus the S&P 500's 70.41%. This suggests that while the stock may be currently fairly valued, its historical performance indicates potential for future appreciation.