Is The Travelers Cos., Inc. overvalued or undervalued?

As of 22 August 2025, the valuation grade for The Travelers Cos., Inc. moved from attractive to very attractive. The company appears to be undervalued based on its current metrics. Key ratios include a P/E ratio of 49, a Price to Book Value of 7.46, and a PEG Ratio of 1.31. In comparison, Progressive Corp. has a P/E of 18.83 and MetLife, Inc. has a P/E of 18.69, indicating that Travelers is trading at a premium relative to its peers.
Despite the high valuation ratios, the company's strong performance is evident in its year-to-date return of 15.36% compared to the S&P 500's 12.22%. However, over the last year, Travelers has underperformed the S&P 500, returning 15.91% versus the index's 17.14%. Overall, the valuation metrics suggest that The Travelers Cos., Inc. is currently undervalued relative to its peers and its performance trajectory.