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

As of 31 October 2025, the valuation grade for The Travelers Cos., Inc. moved from fair to attractive, indicating a more favorable assessment of its value. The company appears to be undervalued, particularly when considering its P/E ratio of 49, which is significantly higher than the peer average of 40.11 for similar companies like Progressive Corp. and MetLife, both of which have P/E ratios of 18.83 and 18.69, respectively. Additionally, the company's Price to Book Value stands at 7.46, and its PEG Ratio is 1.31, suggesting that while the stock may be priced high relative to earnings, it is not excessively so when growth is factored in.
In terms of performance, The Travelers Cos., Inc. has shown a YTD return of 11.51%, which lags behind the S&P 500's return of 16.30% over the same period. However, over a 5-year horizon, the company has outperformed the S&P 500 with a return of 122.53% compared to the index's 109.18%. This long-term performance, combined with the attractive valuation metrics, supports the conclusion that the stock is undervalued relative to its peers and market performance.