The Allstate Corporation (ALL) Stock Valuation — PE Analysis
Insurance - Property & Casualty · NYSE
Current Price
$223.75
PE Ratio (TTM)
4.4x
Intrinsic Value
$380.3
+41.2% margin of safety
COMPETITIVE MOAT
↑Brand Recognition and Trust
Allstate's long-standing brand equity fosters customer loyalty and trust. This established reputation can lead to higher retention rates and a willingness to pay a premium for perceived reliability.
↑Scale and Diversification
The company's extensive geographic reach and diverse product offerings (auto, home, life) create operational efficiencies. This scale allows for better risk pooling and pricing power across different segments.
↑Agent Network
A large, established network of independent and captive agents provides a significant distribution advantage. This personal touch can be a key differentiator in customer acquisition and retention.
INVESTMENT RISKS
↓Catastrophic Events
Allstate's profitability is highly sensitive to the frequency and severity of natural disasters. Significant weather events can lead to substantial underwriting losses and impact financial results.
↓Interest Rate Sensitivity
While higher rates can benefit insurers, significant fluctuations can impact investment income and the valuation of liabilities. Unpredictable rate movements create financial uncertainty.
↓Competition and Pricing Pressure
The insurance market is highly competitive, with both traditional players and new entrants vying for market share. This can lead to aggressive pricing strategies that compress margins.
Base case
ALL base case PE valuation
At a current price of $223.75, the base case PE valuation puts ALL fair value near $380.3 per share. That figure assumes 3.4% yearly earnings growth, a target PE multiple of 4.3x, and a 10% discount rate.
Intrinsic Value
$380.3
Margin of safety
+41.2%
Expected annual return
+11.2%
Base case assumptions: 3.4% annual earnings growth, 4.3x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-06.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the ALL PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for The Allstate Corporation respond.
Open PE Calculator for ALLCompany Overview
The Allstate Corporation, along with its affiliated entities, provides a comprehensive suite of property, casualty, and other insurance offerings throughout the United States and Canada. The company's operations are structured across four primary business segments: Allstate Protection; Protection Services; Allstate Health and Benefits; and Run-off Property-Liability. The Allstate Protection segment delivers a wide array of personal and commercial insurance solutions. This includes standard private passenger auto and homeowners policies, as well as specialized vehicle coverage for motorcycles, trailers, motor homes, and off-road vehicles. Additional personal lines encompass renter, condominium, landlord, boat, umbrella, manufactured home, and stand-alone scheduled personal property policies. Commercial lines products are also available, marketed under the Allstate and Encompass brand names. The Protection Services division focuses on consumer protection and related financial services. Its offerings include product protection plans and technical assistance for mobile phones, consumer electronics, furniture, and appliances. It also provides finance and insurance products such as vehicle service contracts, guaranteed asset protection (GAP) waivers, road hazard tire and wheel protection, and paint and fabric protection. Furthermore, this segment delivers roadside assistance, device and mobile data collection, advanced data and analytical insights leveraging automotive telematics, and identity protection services. Key brands within this segment include Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside Services, Arity, and Allstate Identity Protection. The Allstate Health and Benefits segment specializes in various health-related insurance products, including life, accident, critical illness, short-term disability, and other health coverage options. Finally, the Run-off Property-Liability segment manages existing property and casualty insurance obligations. Allstate's products are distributed through a diverse network of channels, which include call centers, captive agents, financial specialists, independent agents, brokers, wholesale partners, and affinity groups, as well as directly via online platforms and mobile applications. The Allstate Corporation was founded in 1931 and is headquartered in Northbrook, Illinois.
Financial Metrics — ALL PE Stock Valuation Data
PE Ratio (TTM)
4.4x
PEG Ratio
0.03
Earnings Yield
23.23%
ROE (TTM)
43.1%
Revenue/Share (TTM)
$270.27
Dividend Yield
1.89%
Debt/Equity
0.22x
Frequently Asked Questions
What is the PE ratio of ALL?
The trailing twelve-month PE ratio of ALL reflects how much investors pay per dollar of The Allstate Corporation's earnings. This metric is most useful when compared to Insurance - Property & Casualty peers and the company's own historical range.
Is ALL overvalued based on PE ratio?
ALL's PE of 4.4x combined with a PEG ratio of 0.03 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Insurance - Property & Casualty, a DCF analysis may be more appropriate.
How do I value ALL stock using PE ratio?
To value The Allstate Corporation using PE: (1) Compare the current PE (4.4x) against the Insurance - Property & Casualty median to assess relative pricing, (2) check the PEG ratio (0.03) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of ALL?
ALL's PEG ratio is 0.03, calculated by dividing the PE ratio (4.4x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for ALL stock valuation?
PE ratio gives a quick relative read — how ALL is priced versus Insurance - Property & Casualty peers. DCF provides an absolute value based on projected free cash flows. For ALL, with a strong ROE of 43.1%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See ALL DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value ALL with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-06. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.