HANOVER INSURANCE GROUP, INC.
$248.26
+0.27 (+0.11%) · delayed · Nov 13, 2026
Five-year price
52w $166.54 to $256.74
- Market cap
- $8.5B
- Enterprise value
- $8.6B
- P/E
- 13.7×
- 24.1× on 3y avg EPS
- EV / EBIT
- 9.2×
- FCF yield
- 13.7%
- ROIC
- 19.9%
- Debt / equity
- 0.34
- Piotroski F
- 5/9
Value scorecard · FY2025
Does it pass the value tests?
Quality
83
- ●ROIC > 12% (5y avg)5y avg ROIC 12.5%
- ○ROE > 15% (5y avg)5y avg ROE 10.7%
- ●Stable operating marginsMargin volatility 4.3% (σ, 5y)
- ●Earnings convert to cashFCF / net income 431% (5y avg)
- ●Growing revenueRevenue CAGR 5y 6.4%
- ●Shrinking share countDiluted shares -4.2% over 5y
Value
80
- ●P/E below 15P/E 13.7
- ●EV/EBIT below 12EV/EBIT 9.2
- ●FCF yield above 6%FCF yield 13.7%
- ○Price below Graham NumberGraham Number $206.05
- ●P/B below 3P/B 2.4
Safety
75
- ●Debt / equity below 0.5D/E 0.34
- ●Debt payable in < 4 yrs of earningsNet debt $0.1B
- ●Interest coverage > 8xCoverage 28.0x
- –Current ratio > 1.5Current ratio n/a
- ○Piotroski F-score ≥ 6F-score 5/9
Graham Defensive
67
- ●Adequate size (revenue > $2B)Revenue $6.6B
- –Strong condition (current ratio ≥ 2)Current ratio n/a
- ●Earnings stability (no loss, 10y)10 years of data
- ●Uninterrupted dividendsDividends paid every year on record
- ●Earnings growth ≥ 33% (10y, 3y avgs)EPS growth 81%
- ○Moderate P/E (≤ 15 on 3y avg EPS)P/E (3y avg) 24.1
- ○P/E × P/B ≤ 22.5Product 57.7
Valuation lab
What do you have to believe?
At $248.26, the market is pricing in about −7.9% annual free-cash-flow growth for the next decade (9% discount rate, 2.5% terminal growth).
Starting cash flow
Net debt $96M · 34M shares · 5y revenue CAGR 6.4%
Intrinsic value
$696.38
Price
$248.26
Margin of safety
64%
What the price implies
The market is paying for −7.9% annual cash-flow growth for 10 years at a 9.0% discount rate.
Terminal value share
58% of the value sits beyond year 10.
Financial statements
A decade of the record.
USD millions · fiscal years · source: SEC 10-K XBRL
| Line item | FY16 | FY17 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 4,054 | 4,268 | 4,494 | 4,891 | 4,825 | 5,228 | 5,469 | 5,994 | 6,237 | 6,594 |
| Gross profit | — | — | — | — | — | — | — | — | — | — |
| Operating income | 193 | 327 | 407 | 454 | 485 | 432 | 285 | 106 | 650 | 933 |
| Operating margin | 4.8% | 7.7% | 9.0% | 9.3% | 10.0% | 8.3% | 5.2% | 1.8% | 10.4% | 14.1% |
| Pre-tax income | 66 | 293 | 283 | 522 | 445 | 521 | 144 | 41 | 538 | 844 |
| Income tax | (1) | 77 | 44 | 93 | 83 | 101 | 27 | 8 | 113 | 183 |
| Net income | 155 | 186 | 391 | 425 | 359 | 423 | 116 | 35 | 426 | 663 |
| EPS (diluted) | 3.59 | 4.33 | 9.09 | 10.46 | 9.42 | 11.60 | 3.21 | 0.98 | 11.70 | 18.16 |
| Diluted shares | 43 | 43 | 43 | 41 | 38 | 36 | 36 | 36 | 36 | 37 |
Who owns it