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PGR (Progressive) Graham Number : $102.34 (As of Jun. 2024)


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What is Progressive Graham Number?

Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.

As of today (2024-10-31), the stock price of Progressive is $242.83. Progressive's graham number for the quarter that ended in Jun. 2024 was $102.34. Therefore, Progressive's Price to Graham Number ratio for today is 2.19.

The historical rank and industry rank for Progressive's Graham Number or its related term are showing as below:

PGR' s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.09   Med: 1.57   Max: 4.4
Current: 2.03

During the past 13 years, the highest Price to Graham Number ratio of Progressive was 4.40. The lowest was 1.09. And the median was 1.57.

PGR's Price-to-Graham-Number is ranked worse than
84.69% of 405 companies
in the Insurance industry
Industry Median: 0.86 vs PGR: 2.03

Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.


Progressive Graham Number Historical Data

The historical data trend for Progressive's Graham Number can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Progressive Graham Number Chart

Progressive Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Graham Number
Get a 7-Day Free Trial Premium Member Only Premium Member Only 56.85 76.90 61.17 29.29 70.74

Progressive Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Graham Number Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 54.19 70.74 90.48 102.34 119.81

Competitive Comparison of Progressive's Graham Number

For the Insurance - Property & Casualty subindustry, Progressive's Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Progressive's Price-to-Graham-Number Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Progressive's Price-to-Graham-Number distribution charts can be found below:

* The bar in red indicates where Progressive's Price-to-Graham-Number falls into.



Progressive Graham Number Calculation

Graham Number is a concept based on Ben Graham's conservative valuation of companies.

Progressive's Graham Number for the fiscal year that ended in Dec. 2023 is calculated as

Graham Number
=sqrt of (22.5* Tangible Book per Share *EPS without NRI)
=sqrt of (22.5*33.8*6.58)
=70.74

Progressive's Graham Number for the quarter that ended in Jun. 2024 is calculated as

Graham Number
=sqrt of (22.5*Tangible Book per Share*EPS without NRI (TTM))
=sqrt of (22.5*39.853*13.76)
=111.08

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Progressive  (NYSE:PGR) Graham Number Explanation

Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:

Current price should not be more than 15 times average earnings of the past three years.

Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)

Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.

In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.

Progressive's Price to Graham number Ratio for today is calculated as

Price to Graham number=Share Price (Today)/Graham number (Q: Jun. 2024 )
=242.83/111.08
=2.19

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Please keep these in mind:

1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.


Progressive Graham Number Related Terms

Thank you for viewing the detailed overview of Progressive's Graham Number provided by GuruFocus.com. Please click on the following links to see related term pages.


Progressive Business Description

Address
6300 Wilson Mills Road, Mayfield Village, OH, USA, 44143
Progressive underwrites private and commercial auto insurance and specialty lines; it has almost 20 million personal auto policies in force and is one of the largest auto insurers in the United States. Progressive markets its policies through independent insurance agencies in the US and Canada and directly via the internet and telephone. Its premiums are split roughly equally between the agent and the direct channel. The company also offers commercial auto policies and entered homeowners insurance through an acquisition in 2015.
Executives
Steven Broz officer: Chief Information Officer C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Patrick K Callahan officer: Personal Lines President C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Susan Patricia Griffith officer: Chief Human Resource, Officer 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
John Jo Murphy officer: Claims President C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Jonathan S. Bauer officer: Chief Investment Officer 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Andrew J Quigg officer: Chief Strategy Officer C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
John P Sauerland officer: Direct Group, President PROGRESSIVE, 7580 NORTHCLIFF AVE. -- SUITE 1000, BROOKLYN OH 44144
Lori A Niederst officer: CRM President C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Karen Bailo officer: Commercial Lines President 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Roger N Farah director POLO RALPH LAUREN CORP, 650 MADISON AVE, NEW YORK NY 10022
Philip Bleser director 8760 CLAY ROAD SUITE 100, HOUSTON TX 77494
Mariann Wojtkun Marshall officer: Chief Accounting Officer C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS RD., MAYFIELD VILLAGE OH 44143
Devin C Johnson director 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Daniel P Mascaro officer: Vice Pres, Secretary and CLO C/O THE PROGRESSIVE CORPORATION, 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143
Stuart B Burgdoerfer director 6300 WILSON MILLS ROAD, MAYFIELD VILLAGE OH 44143