ALL
Allstate Corp
Price:  
198 
USD
Volume:  
963,005
United States | Insurance

Allstate Fair Value

92.8 %
Upside

What is the fair value of Allstate?

As of 2025-07-07, the Fair Value of Allstate Corp (ALL) is 381.77 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 198 USD, the upside of Allstate Corp is 92.8%.

Is Allstate a good investment?

With the market price of 198 USD and our fair value calculation, Allstate Corp (ALL) is a good investment. Investing in Allstate stocks now will result in a potential gain of 92.8%.

198 USD
Stock Price
381.77 USD
Fair Price
FAIR VALUE CALCULATION

Allstate Fair Value

Peter Lynch's formula is:

Allstate Fair Value
= Earnings Growth Rate x TTM EPS
Allstate Fair Value
= 25 x 15.27
Allstate Fair Value
= 381.77

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income5,5761,599-1,311-1884,6672,069
YoY growth15%-71.3%-182%85.7%2582.4%486%

Allstate Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Progressive Corp153,39014.9371.6942%
Chubb Ltd113,72721.1527.7986%
Travelers Companies Inc59,84418.9334.1326.5%
Intact Financial Corp55,62612.9322.423.4%
Arch Capital Group Ltd33,42410251.24181.7%
Markel Corp25,386145.43,634.7881.6%
Loews Corp19,3746.3118.4228.2%
Fidelity National Financial Inc15,9264100.5973.5%
CNA Financial Corp12,3653.336.03-21.1%

Allstate Fair Value - Key Data

Market Cap (mil)52,434
P/E13x
Forward P/E10.2x
EPS15.27
Avg earnings growth rate486%
TTM earnings4,044

Allstate Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.