* Note: Prices are in Million (M) USD.
Description:
The Allstate Corporation is a prominent American insurance provider based in Northfield Township, Illinois, offering a comprehensive portfolio of insurance solutions that encompasses auto, home, life, and commercial coverage. Renowned for its customer-centric ethos, Allstate employs cutting-edge technology and data analytics to improve risk assessment and streamline claims processing, which bolsters its competitive advantage in the industry. Supported by solid financial performance and a proactive approach to innovation, Allstate is well-equipped to seize growth opportunities and navigate the evolving landscape of the insurance sector.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Note: Financial institutions (banks/insurers/brokers/REITs) are evaluated using sector, P/E, growth, ROE and other factors. The 3.5× Net Debt/EBITDA rule is skipped to avoid misleading signals; however, Cash/Debt/EBITDA are still displayed and counted for scoring.
Cash : $931 M
Debt : $8,639 M
EBITDA : $11,617 M
Net Debt (Debt - Cash): $7,708 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Financial services
Industry: Insurance - property & casualty
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 7.81
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $63,515 M
Revenue 5 Years Ago (2019-12-31): $44,675 M
Total Growth over 5 Years: 42.2%
5-Year Revenue CAGR (Historical): 7.3%
Forward 5-Year CAGR (Tapered): 6.6%
Since historical Revenue CAGR is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $268 M
Share Count 5 Years Ago (2020-12-31): $316 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $24.10
Trailing 12-Month Earnings Per Share (EPS): $28.90
Average Earnings Per Share (EPS): $26.50
Dividend Per Share (DPS): $4
Payout Ratio: 15%
Dividend Yield: 1.83%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 10.2%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $206.84
52-Week Low: $173.88
Threshold Price (15% Above 52-Week Low): $199.96
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $55,961 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 25 points to above The Allstate Corporation (ALL) stock.
Fair Value PE
15, Industry Based PE
15, Growth Based PE
15, ROE Based PE
10.16, Risk-Free Anchored PE (25% MoS)
18.34. Based on these 5 values, average assigned is
14.70. Value-Trades has assined P/E value
14.70. An average (Current Year EPS + Next Year EPS) earning per share is
$26.4975.
Fair value using multiple P/Es (blended): $389.50 (PE 14.70 × EPS $26.50)
So the Final Fair Value is: $389.50
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $26.50
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 14.7 | $389.51 |
Financials mode
3.5× Net Debt/EBITDA penalty is disabled; Cash/Debt/EBITDA are shown and counted.
