Is The Hanover Insurance Group, Inc. overvalued or undervalued?

As of 30 October 2024, The Hanover Insurance Group, Inc. has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a P/E ratio of 24, a Price to Book Value of 3.50, and a PEG ratio of 0.14. In comparison to its peers, Markel Group, Inc. has a P/E of 13.70, while Loews Corp. has a P/E of 15.00, indicating that The Hanover is trading at a premium relative to these competitors.
Despite this premium, The Hanover's robust dividend yield of 117.50% and a return on equity (ROE) of 14.39% suggest strong underlying performance. Additionally, the company's stock has outperformed the S&P 500 over the past year, returning 37.96% compared to the index's 10.26%. This performance reinforces the notion that the company is fairly valued in the current market environment.