GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Chubb Ltd (NYSE:CB) » Definitions » PE Ratio

Chubb (CB) PE Ratio : 12.13 (As of Oct. 29, 2024)


View and export this data going back to 1984. Start your Free Trial

What is Chubb PE Ratio?

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-10-29), Chubb's share price is $287.20. Chubb's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $23.67. Therefore, Chubb's PE Ratio for today is 12.13.

During the past 13 years, Chubb's highest PE Ratio was 30.94. The lowest was 8.92. And the median was 14.41.

Chubb's EPS (Diluted) for the three months ended in Jun. 2024 was $5.46. Its EPS (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $23.67.

As of today (2024-10-29), Chubb's share price is $287.20. Chubb's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $24.07. Therefore, Chubb's PE Ratio without NRI ratio for today is 11.93.

During the past 13 years, Chubb's highest PE Ratio without NRI was 32.86. The lowest was 9.99. And the median was 14.77.

Chubb's EPS without NRI for the three months ended in Jun. 2024 was $5.38. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $24.07.

During the past 12 months, Chubb's average EPS without NRI Growth Rate was 95.80% per year. During the past 3 years, the average EPS without NRI Growth Rate was 42.50% per year. During the past 5 years, the average EPS without NRI Growth Rate was 20.30% per year. During the past 10 years, the average EPS without NRI Growth Rate was 6.80% per year.

During the past 13 years, Chubb's highest 3-Year average EPS without NRI Growth Rate was 171.40% per year. The lowest was -47.40% per year. And the median was 6.30% per year.

Chubb's EPS (Basic) for the three months ended in Jun. 2024 was $5.51. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2024 was $23.86.

Back to Basics: PE Ratio


Chubb PE Ratio Historical Data

The historical data trend for Chubb's PE Ratio 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.

Chubb PE Ratio Chart

Chubb Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.03 19.76 10.05 17.80 10.37

Chubb Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
PE Ratio 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 13.88 12.30 10.37 11.50 10.78

Competitive Comparison of Chubb's PE Ratio

For the Insurance - Property & Casualty subindustry, Chubb's PE Ratio, along with its competitors' market caps and PE Ratio 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.


Chubb's PE Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Chubb's PE Ratio distribution charts can be found below:

* The bar in red indicates where Chubb's PE Ratio falls into.



Chubb PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Chubb's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=287.20/23.670
=12.13

Chubb's Share Price of today is $287.20.
Chubb's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $23.67.


* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Chubb  (NYSE:CB) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Chubb PE Ratio Related Terms

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


Chubb Business Description

Traded in Other Exchanges
Address
Baerengasse 32, Zurich, CHE, CH-8001
ACE acquired Chubb in the first quarter of 2016 and assumed the Chubb name. The combination made the new Chubb one of the largest domestic property and casualty insurers, with operations in 54 countries spanning commercial and personal P&C insurance, reinsurance, and life insurance.
Executives
Evan G Greenberg director, officer: President & COO THE CHUBB BUILDING, 17 WOODBOURNE AVENUE, HAMILTON D0 HM 08
Joseph F Wayland officer: General Counsel 1133 AVENUE OF THE AMERICAS, 45TH FLOOR, NEW YORK NY 10036
John J Lupica officer: Chrm, Ins - NA, Pres.- ACE USA 436 WALNUT STREET, PHILADELPHIA PA 19106-3703
Michael G Atieh director MERCK MEDCO MANAGED CARE INC, 100 SUMMIT AVE, MONTVALE NJ 07645
Juan Luis Ortega officer: Executive Vice President* CHUBB, AVENUE OF THE AMERICAS, NEW YORK NY 10036
Timothy Alan Boroughs officer: Chief Investment Officer* 1133 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Peter C. Enns officer: Executive Vice President and* THE CHUBB BUILDING, 17 WOODBOURNE AVENUE, HAMILTON D0 HM 08
Annmarie T Hagan officer: Chief Accounting Officer TWO LIBERTY PLACE, 1601 CHESTNUT STREET, PHILADELPHIA PA 19192
John W Keogh officer: CEO of ACE Overseas General ACE OVERSEAS GENERAL, 1133 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Theodore Shasta director C/O MBIA INC., 113 KING STREET, ARMONK NY 10504
Frances D. O'brien officer: Chief Risk Officer THE CHUBB BUILDING, 17 WOODBOURNE AVENUE, HAMILTON D0 HM 08
Nancy Buese director 1515 ARAPAHOE STREET, DENVER CO 80202-2126
Michael Corbat director 388 GREENWICH STREET, 17TH FLOOR, NEW YORK NY 10013
Bryce L. Johns officer: Senior Vice President, * THE CHUBB BUILDING, 17 WOODBOURNE AVENUE, HAMILTON D0 HM 08
Sean Ringsted officer: Chief Risk Officer and* THE ACE BLDG., 17 WOODBOURNE AVE., HAMILTON D0 HM 08