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The Hanover Insurance GroupTHG +0.33%80 EV-to-EBIT is 8.41 as of Jul. 22, 2026, which is 30% below its 10-year median of 12.08. GuruFocus rates THG with a GF Score™ of 80/100 and a GF Value™ of $202.84 (Fairly Valued). The stock has 8 warning signs investors should review. Among 346 Insurance companies, The Hanover Insurance Group ranks better than 52.6% on this metric.
The Hanover Insurance Group (NYSE:THG) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
The Hanover Insurance Group's Enterprise Value for the quarter that ended in Mar. 2026 was $6,735 Mil.
The Hanover Insurance Group's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $966 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Hanover Insurance Group EV-to-EBIT Related Terms
The Hanover Insurance Group EV-to-EBIT Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Insurance - Property & Casualty subindustry, The Hanover Insurance Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Hanover Insurance Group EV-to-EBIT vs Insurance Industry
For the Insurance industry and Financial Services sector, The Hanover Insurance Group's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where The Hanover Insurance Group's EV-to-EBIT falls into.
The Hanover Insurance Group's current Enterprise Value is $8,125 Mil.
The Hanover Insurance Group's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $966 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Hanover Insurance Group (THG) has a EV-to-EBIT of 8.41 as of Jul. 22, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on The Hanover Insurance Group and its competitors. This is 30% below median its historical median of 12.08. According to the industry distribution chart, The Hanover Insurance Group ranks #164 out of 346 companies in the Insurance industry, placing it in the top 47.4%.
Is The Hanover Insurance Group's EV-to-EBIT too high?
The Hanover Insurance Group's current EV-to-EBIT of 8.41 is 30% below median its 10-year median of 12.08. The Insurance industry median EV-to-EBIT is 8.70. The Hanover Insurance Group's value of 8.41 is 3.3% below this industry median. Based on the distribution chart, The Hanover Insurance Group ranks #164 out of 346 companies in the Insurance industry, which is above the industry midpoint. Overall, The Hanover Insurance Group has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Hanover Insurance Group's EV-to-EBIT compare to KNSL and MCY?
According to the Insurance industry distribution chart, The Hanover Insurance Group ranks #164 out of 346 companies for EV-to-EBIT. This puts The Hanover Insurance Group in the upper half of its industry. The industry median EV-to-EBIT is 8.70. The Hanover Insurance Group's value of 8.41 is 3.3% below this benchmark. While the company's 10-year median is 12.08 vs. the industry median of 8.70, The Hanover Insurance Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for an Insurance company?
The median EV-to-EBIT among Insurance companies is 8.70, based on 346 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Hanover Insurance Group's current EV-to-EBIT of 8.41 is 3.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on The Hanover Insurance Group and its competitors. For the Insurance industry, the median EV-to-EBIT is 8.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Hanover Insurance Group's current EV-to-EBIT is 8.41, which is 30% below median its own 10-year median of 12.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Hanover Insurance Group stock overvalued right now?
Based on GuruFocus' analysis, The Hanover Insurance Group (THG) is currently considered Fairly Valued. The stock's GF Value™ is $202.84, compared to a current price of $215.06 — trading 6% above its estimated fair value. The current EV-to-EBIT is 8.41, which is 30% below median its 10-year median of 12.08 and 3.3% below the Insurance industry median of 8.70. The Hanover Insurance Group's overall GF Score™ is 80/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For The Hanover Insurance Group (THG), the current EV-to-EBIT is 8.41 as of Jul. 22, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Hanover Insurance Group (THG) Overvalued in 2026?
Based on GuruFocus' analysis, The Hanover Insurance Group stock appears to be overvalued.
The current stock price of $215.06 is trading 6% above its estimated GF Value™ of $202.84.
GuruFocus considers The Hanover Insurance Group to be Fairly Valued.
Key valuation signals for THG:
EV-to-EBIT: 8.41 (30% below median its 10-year median of 12.08)
GF Value™: $202.84 vs. price of $215.06 (6% above fair value)
Industry Position: 3.3% below the Insurance median (#164 of 346)
No single metric tells the full story. See the THG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Hanover Insurance Group Inc is a holding company whose primary business is offering property and casualty insurance products and services. The company markets itself through independent agents and brokers in the United States while conducting business through Hanover Insurance, Citizens and other THG subsidiaries. The company conducts business operations through four operating segments: Core Commercial, Specialty, Personal Lines, and Other. The company operates an investment portfolio that is exposed to fixed-income securities.
80GF Score
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