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 positive shift in its valuation outlook. The company appears to be undervalued, particularly when considering its P/E ratio of 49, which is significantly higher than the industry average, and a PEG ratio of 1.31 that suggests reasonable growth expectations relative to its price. Additionally, the EV to Sales ratio stands at 4.53, which further supports the notion of undervaluation compared to its peers.
In comparison to its peers, The Travelers Cos., Inc. has a P/E ratio that is notably higher than Progressive Corp. at 18.83 and MetLife, Inc. at 18.69, both of which are considered fairly valued. Despite its higher valuation metrics, the company has delivered a solid YTD return of 11.11%, although it lags behind the S&P 500's return of 16.30%. Over the longer term, the 5-year return of 111.86% is slightly above the S&P 500's 109.18%, suggesting that while it may be currently overvalued based on certain ratios, its historical performance indicates potential for future growth.