Company Overview
Progressive is a U.S. insurance company best known for underwriting auto insurance and related policies. It sells coverage directly and through independent agents, with a large national footprint. The business is built around pricing risk, managing claims, and investing premium float. Its scale is reflected in a market value of about USD 113.3 billion.
Analysis of recent data
FundamentalsFor 2025, reported in USD, revenue is shown as about USD 248 million alongside net income of roughly USD 11.3 billion, an unusual combination that makes the revenue line hard to reconcile with the profitability figures as presented. Even so, the trailing margin profile is clearly profitable, with a 16.55% operating margin and a 12.90% net margin.
The balance sheet lists cash at about USD 125 million and depreciation and amortization at roughly USD 313 million, while total debt and capital spending are not disclosed. The company’s return on equity stands at 35.52%, and the stock’s beta of about 0.33 indicates relatively muted price swings.
Valuation
DCF / MultiplesAt USD 193.36, the stock trades well below the discounted cash flow range implied by the model’s scenarios. That discount appears notable next to headline multiples such as a 10.27 P/E and 8.30 EV/EBITDA, which align more with a business showing less durable economics than the current return profile reflects.
Conclusion
TakeawayThe price looks like skepticism, not confidence. Durable profitability has to keep showing up in real earnings. If margins or underwriting results fade, the cheap multiple can vanish. If durability holds, the gap to intrinsic value looks like mispricing.