Chubb Limited (CB) Stock Valuation — PE Analysis
Insurance - Property & Casualty · NYSE
Current Price
$356.89
PE Ratio (TTM)
12.5x
Intrinsic Value
$432.75
+17.5% margin of safety
COMPETITIVE MOAT
↑Global Scale and Diversification
Chubb's extensive global presence and diversified insurance product lines create a significant competitive advantage. This broad reach allows for risk pooling and resilience across different markets and perils.
↑Strong Brand and Underwriting Expertise
A long-standing reputation for financial strength and superior underwriting capabilities fosters customer loyalty and trust. This allows Chubb to command premium pricing and attract high-quality business.
↑Deep Distribution Network
Chubb leverages a vast network of brokers and agents, providing access to a wide customer base. This established distribution system is difficult for new entrants to replicate.
INVESTMENT RISKS
↓Catastrophic Event Exposure
As a property and casualty insurer, Chubb is exposed to significant financial losses from large-scale natural disasters or man-made catastrophes. Reinsurance costs can also fluctuate.
↓Interest Rate Sensitivity
Changes in interest rates can impact Chubb's investment income, a crucial component of its profitability. Lower rates can compress investment yields.
↓Competitive Pricing Pressures
The insurance market is highly competitive, with new entrants and existing players often engaging in price wars. This can erode profit margins if not managed effectively.
Base case
CB base case PE valuation
At a current price of $356.89, the base case PE valuation puts CB fair value near $432.75 per share. That figure assumes 5.8% yearly earnings growth, a target PE multiple of 13x, and a 10% discount rate.
Intrinsic Value
$432.75
Margin of safety
+17.5%
Expected annual return
+3.9%
Base case assumptions: 5.8% annual earnings growth, 13x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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 CB PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Chubb Limited respond.
Open PE Calculator for CBCompany Overview
Chubb Limited, headquartered in Zurich, Switzerland, is a global insurer and reinsurer, offering a broad spectrum of products across various markets. In North America, its Commercial Property & Casualty (P&C) division caters to businesses of all scales, from large corporations to small enterprises, providing a wide range of policies. These encompass commercial property, casualty, workers' compensation, package deals, risk management, financial lines, marine, construction, environmental, medical, cyber risk, surety, and excess casualty, alongside group accident and health insurance. The North America Personal P&C unit serves affluent individuals and high-net-worth families, delivering coverage for homeowners, automobiles (including collector vehicles), valuable possessions, personal and excess liability, travel, and recreational marine risks, complete with related services. Furthermore, its North American Agricultural Insurance arm specializes in multi-peril crop and crop-hail protection, as well as policies for farm and ranch properties and commercial agriculture. Internationally, the Overseas General Insurance segment provides traditional commercial P&C coverage and unique solutions in areas such as financial lines, marine, energy, aviation, political risk, and construction. This division also extends group accident and health, plus conventional and specialized personal lines to corporate clients, mid-market businesses, and smaller customers, distributing products through retail brokers, agents, and other channels. Operating under the Chubb Tempest Re brand, the Global Reinsurance segment furnishes both traditional and specialty reinsurance offerings to property and casualty insurers worldwide. Additionally, Chubb's Life Insurance division features an array of protection and savings products, including whole life, endowment plans, individual and group term life, medical and health, personal accident, credit life, universal life, and unit-linked contracts. The company primarily distributes its extensive range of insurance and reinsurance solutions through brokers. Chubb Limited, which was founded in 1985, was previously known as ACE Limited before adopting its current name in January 2016.
Financial Metrics — CB PE Stock Valuation Data
PE Ratio (TTM)
12.5x
PEG Ratio
0.52
Earnings Yield
7.99%
ROE (TTM)
15.2%
Revenue/Share (TTM)
$157.96
Dividend Yield
1.10%
Debt/Equity
0.24x
Frequently Asked Questions
What is the PE ratio of CB?
The trailing twelve-month PE ratio of CB reflects how much investors pay per dollar of Chubb Limited's earnings. This metric is most useful when compared to Insurance - Property & Casualty peers and the company's own historical range.
Is CB overvalued based on PE ratio?
CB's PE of 12.5x combined with a PEG ratio of 0.52 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 CB stock using PE ratio?
To value Chubb Limited using PE: (1) Compare the current PE (12.5x) against the Insurance - Property & Casualty median to assess relative pricing, (2) check the PEG ratio (0.52) 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 CB?
CB's PEG ratio is 0.52, calculated by dividing the PE ratio (12.5x) 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 CB stock valuation?
PE ratio gives a quick relative read — how CB is priced versus Insurance - Property & Casualty peers. DCF provides an absolute value based on projected free cash flows. For CB, with a strong ROE of 15.2%, 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 CB 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 CB with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.