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. The company appears to be undervalued, with a P/E ratio of 49, a Price to Book Value of 7.46, and an EV to Sales ratio of 4.53. In comparison, peers such as Progressive Corp. have a P/E of 18.83, while MetLife, Inc. shows a P/E of 18.69, suggesting that Travelers is trading at a premium relative to its industry counterparts.
Despite recent stock performance lagging behind the S&P 500, with a 1Y return of 9.22% compared to the index's 19.89%, the long-term outlook remains positive, as evidenced by a 5Y return of 122.53% versus the S&P's 109.18%. This suggests that while short-term performance may be underwhelming, the company's valuation metrics indicate potential for growth and attractiveness in the long run.