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Wednesday 4 November 2026 Export THG’s income statement to Excel — free account

The Hanover Insurance Group, Inc.

THG Financial Insurance Property & Casualty

The Hanover Insurance Group, Inc.’s revenue for fiscal 2025 (year ended December 2025) was $6.6 billion, up 5.72% from fiscal 2024.

Revenue
+4.23%
EPS
+1.22%
Free cash flow
−6.06%
Total debt
−34.0%

Quarter to September 2026, against a year earlier

249.73 2.42 +0.98%
Market cap
$8.5B
P/E
11.7×
Fwd P/E
11.6×
Dividend yield
1.53%
F-score
7/9
Altman Z
n/a
Beneish M
n/a
Dividend safety
n/a
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Valuation Filings

The Hanover Insurance Group, Inc. (THG) valuation and DCF model

What the price implies · reverse DCF

At $249.73 the price implies 21.8% a year of dividend growth, at a 9.0% cost of equity.

The dividend a share grew 8.0% a year over the last ten years, 6.5% over the last five. The price asks for about three times its ten-year rate. Return on equity averaged 10.7% over ten years; the price implies 18.9% for good.

In December 2017 the price assumed 19.0% a year; The Hanover Insurance Group, Inc. went on to grow the dividend a share 6.7% a year to FY2025.

Price implies
21.8%
Last 5 years, reported
6.5%
Last 10 years, reported
8.0%

The headline discounts the last twelve months’ the dividend a share at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
21.8% a year for ten years
$249.73
today’s price
Its base case
8.0% a year for five years, then 4.8%
$79.82
68.0% below today’s price

Both are growth in the dividend a share, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record The Hanover Insurance Group, Inc.’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Dividends
the four quarters to September 2026, from the 10-Q and 10-K filings

Yearly growth in the dividend. It usually slows as the company matures.

Today’s price implies the dividend a share growing 21.8% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

The model is a share’s own: no debt to take off and no shares to divide among.

Advanced inputs

Against The Hanover Insurance Group, Inc.’s own cost of capital: risk-free 4.3% + beta 0.24 × equity premium 4.5% = 5.4% cost of equity; after-tax cost of debt 4.2%; weighted, 5.3%.

Use 5.3%
Base case value per share $79.82 ten years discounted, and what follows
Current price $249.73 market price per share
Below today’s price 68.0% downside at the base case’s assumptions

How we got there$33.85 10 years of dividends+$45.96 terminal value=$79.82 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Insurance Property & Casualty).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 11.67× 40.79× 27.81× 58% below 11.87× 2% below
P/FCF 7.06× 7.81× 7.63× 7% below 8.12× 13% below
P/B 2.50× 2.03× 1.81× 38% above 1.99× 26% above
EV/EBITDA — 21.63× 17.11× — 3.38× —
EV/Sales — 0.95× 1.03× — 3.90× —
P/E P/FCF P/B EV/EBITDA EV/Sales
6.15×8.15×10.16×12.17×10Y avg 7.63×2017201820192020202120222023202420252026

THG trades at 7.06× P/FCF, against a 10-year average of 7.63× (range 5.59×–12.55×). That is dearer than 67% of the last 9 year-end readings; re-rating to the average implies $269.59 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.