EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, The Hanover Insurance Group's Enterprise Value is $8,039 Mil.
The Hanover Insurance Group's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was $1,249 Mil. Therefore, The Hanover Insurance Group's EV-to-FCF for today is 6.44.
The historical rank and industry rank for The Hanover Insurance Group's EV-to-FCF or its related term are showing as below:
THG'
s EV-to-FCF Range Over the Past 10 Years
Min: 5.35 Med: 7.69 Max: 15.86
Current: 6.44
During the past 13 years, the highest EV-to-FCF of The Hanover Insurance Group was 15.86. The lowest was 5.35. And the median was 7.69.
THG's EV-to-FCF is ranked better than 64.3% of 395
companies
in the Insurance industry
Industry Median: 9.32
vs THG: 6.44
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
The Hanover Insurance Group (NYSE:THG) EV-to-FCF Explanation
EV-to-FCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
The Hanover Insurance Group's PE Ratio (TTM) for today is calculated as:
The Hanover Insurance Group's share price for today is $212.61.
The Hanover Insurance Group's Earnings per Share (Diluted) 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 $19.870.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
The Hanover Insurance Group EV-to-FCF Related Terms
The Hanover Insurance Group EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Insurance Industry
For the Insurance industry and Financial Services sector, The Hanover Insurance Group's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where The Hanover Insurance Group's EV-to-FCF falls into.
The Hanover Insurance Group's current Enterprise Value is $8,039 Mil.
The Hanover Insurance Group's Free Cash Flow 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 $1,249 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-FCF of 6.44 as of Jun. 28, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on The Hanover Insurance Group and its competitors. This is 16% below median its historical median of 7.69. Over the past decade, The Hanover Insurance Group's EV-to-FCF has ranged from 5.35 to 15.86. According to the industry distribution chart, The Hanover Insurance Group ranks #141 out of 395 companies in the Insurance industry, placing it in the top 35.7%.
Is The Hanover Insurance Group's EV-to-FCF too high?
The Hanover Insurance Group's current EV-to-FCF of 6.44 is 16% below median its 10-year median of 7.69. Over the past 10 years, this metric has ranged from a low of 5.35 to a high of 15.86. The Insurance industry median EV-to-FCF is 9.32. The Hanover Insurance Group's value of 6.44 is 30.9% below this industry median. Based on the distribution chart, The Hanover Insurance Group ranks #141 out of 395 companies in the Insurance industry, which is above the industry midpoint. Overall, The Hanover Insurance Group has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Hanover Insurance Group's EV-to-FCF compare to KNSL and MCY?
According to the Insurance industry distribution chart, The Hanover Insurance Group ranks #141 out of 395 companies for EV-to-FCF. This puts The Hanover Insurance Group in the upper half of its industry. The industry median EV-to-FCF is 9.32. The Hanover Insurance Group's value of 6.44 is 30.9% below this benchmark. Historically, The Hanover Insurance Group's own EV-to-FCF has ranged from 5.35 to 15.86 over the past decade. While the company's 10-year median is 7.69 vs. the industry median of 9.32, 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-FCF for an Insurance company?
The median EV-to-FCF among Insurance companies is 9.32, based on 395 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF 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-FCF of 6.44 is 30.9% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on The Hanover Insurance Group and its competitors. For the Insurance industry, the median EV-to-FCF is 9.32 — 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-FCF is 6.44, which is 16% below median its own 10-year median of 7.69. 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 $201.18, compared to a current price of $212.61 — trading 5.7% above its estimated fair value. The current EV-to-FCF is 6.44, which is 16% below median its 10-year median of 7.69 and 30.9% below the Insurance industry median of 9.32. The Hanover Insurance Group's overall GF Score™ is 82/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For The Hanover Insurance Group (THG), the current EV-to-FCF is 6.44 as of Jun. 28, 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 $212.61 is trading 5.7% above its estimated GF Value™ of $201.18.
GuruFocus considers The Hanover Insurance Group to be Fairly Valued.
Key valuation signals for THG:
EV-to-FCF: 6.44 (16% below median its 10-year median of 7.69)
GF Value™: $201.18 vs. price of $212.61 (5.7% above fair value)
Industry Position: 30.9% below the Insurance median (#141 of 395)
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.
82GF Score
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