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

As of 24 October 2025, the valuation grade for The Travelers Cos., Inc. moved from attractive to fair. The company appears to be overvalued based on its current metrics, with a P/E ratio of 49, a price-to-book value of 7.46, and an EV to EBITDA of 301.26. 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 significant premium relative to its peers.
Despite the recent stock performance, where Travelers outperformed the S&P 500 over the past week with a return of 3.01% compared to 1.92%, its longer-term returns are less impressive, especially over three years (50.11% vs. 78.85% for the S&P 500) and ten years (114.25% vs. 227.29%). This suggests that while the stock has shown short-term strength, its valuation metrics indicate it may not be justified at current levels.