The Allstate Corporation (ALL) Stock Valuation — PE Analysis
Insurance - Property & Casualty · NYSE
Current Price
$221.63
PE Ratio (TTM)
4.7x
Intrinsic Value
Outside reliable range
COMPETITIVE MOAT
↑Strong Underwriting Turnaround
Allstate has demonstrated a powerful comeback with strong underwriting results. This indicates improved risk selection and pricing, enhancing profitability.
↑Rising Premiums
The company is successfully implementing rising premiums across its policies. This allows Allstate to offset increasing costs and maintain healthy margins.
↑Investment Income Growth
Allstate benefits from growing investment income, which supplements its underwriting profits. This diversification provides a stable revenue stream.
INVESTMENT RISKS
↓Catastrophe Loss Volatility
Estimated catastrophe losses, like those in April 2026, can significantly impact profitability. These events are unpredictable and can lead to substantial financial strain.
↓Market Sentiment Swings
Allstate's stock price can be volatile, as seen with recent declines despite market gains. Negative market sentiment can pressure valuations regardless of operational performance.
↓Earnings Report Sensitivity
The stock's performance is sensitive to earnings reports, with declines following recent announcements. Any future earnings miss could further impact investor confidence.
Base case
ALL base case PE valuation
Base case assumptions: 18.1% annual earnings growth, 5x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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)
4.7x
PEG Ratio
0.02
Earnings Yield
21.13%
ROE (TTM)
42.7%
Revenue/Share (TTM)
$258.82
Dividend Yield
1.88%
Debt/Equity
0.24x
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 4.7x combined with a PEG ratio of 0.02 provides a growth-adjusted perspective. A PEG below 1.0 suggests ALL may be undervalued relative to its 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 (4.7x) against the Insurance - Property & Casualty median to assess relative pricing, (2) check the PEG ratio (0.02) 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 0.02, calculated by dividing the PE ratio (4.7x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. 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 42.7%, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.