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Wondering whether CNA Financial at around US$46.38 is a fair deal or a stretch on price? This article walks you through what that number might really imply about value.
The stock has recently shown mixed returns, with a 0.1% move over the last week, a 2.6% decline over 30 days, a 1.0% decline year to date, a 2.9% gain over the past year, and returns of 39.2% over 3 years and 66.3% over 5 years.
Recent attention on the insurance sector more broadly, including ongoing discussion around underwriting conditions and capital strength across insurers, has kept investors watching CNA Financial alongside its peers. This backdrop provides useful context when you look at how the share price has behaved over different time frames.
CNA Financial currently scores a 5 out of 6 on Simply Wall St’s valuation checks, which indicates that several measures point to potential undervaluation. Next we will look at how different valuation approaches line up, before finishing with a way to think about value that can tie all of those methods together.
Find out why CNA Financial’s 2.9% return over the last year is lagging behind its peers.
The Excess Returns model looks at how much profit a company generates above the return that equity investors typically require, then capitalizes those extra profits into an estimated value per share.
For CNA Financial, the starting point is its book value of $41.83 per share and a stable book value estimate of $36.46 per share, both drawn from median figures over the past 5 years. On that equity base, the company is modeled to earn stable EPS of $3.54 per share, with an average return on equity of 9.71%.
The cost of equity is estimated at $2.54 per share, which implies an excess return of $1.00 per share. In simple terms, the model assumes CNA Financial earns more on its equity than investors require, and that this surplus can continue on a stable basis.
Capitalizing these excess returns leads to an intrinsic value estimate of $63.65 per share. Compared with the recent share price around $46.38, this implies the stock is 27.1% undervalued based on this approach.
Result: UNDERVALUED
Our Excess Returns analysis suggests CNA Financial is undervalued by 27.1%. Track this in your watchlist or portfolio, or discover 871 more undervalued stocks based on cash flows.
CNA Discounted Cash Flow as at Jan 2026
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for CNA Financial.
For profitable companies like CNA Financial, the P/E ratio is a useful way to think about value because it links what you pay today with the earnings the business is already generating. In general, higher expected growth and lower perceived risk can justify a higher P/E, while more uncertainty or weaker growth prospects usually point to a lower P/E being reasonable.
CNA Financial currently trades on a P/E of 12.59x. That is in line with the Insurance industry average of about 12.59x and below the peer group average of 15.66x. Simply Wall St also calculates a proprietary “Fair Ratio” of 15.49x for CNA Financial, which reflects factors such as the company’s earnings profile, industry, profit margins, size and specific risk characteristics.
This Fair Ratio is more tailored than a simple comparison with industry or peer averages because it attempts to adjust for what makes CNA Financial different, including its sector, market cap, profitability and risk factors. Comparing the Fair Ratio of 15.49x with the current P/E of 12.59x suggests the shares trade below that modelled level. On this metric the stock screens as undervalued.
Result: UNDERVALUED
NYSE:CNA P/E Ratio as at Jan 2026
P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1442 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. This is where you connect your view of CNA Financial’s business to a simple forecast for revenue, earnings and margins, then to your own fair value. All of this is done within an easy tool on Simply Wall St’s Community page that updates when fresh news or earnings arrive and helps you compare that fair value to today’s price. This lets you judge whether to act, whether you lean closer to a higher US$53.00 outlook or a more cautious US$43.00 view.
Do you think there’s more to the story for CNA Financial? Head over to our Community to see what others are saying!
NYSE:CNA 1-Year Stock Price Chart
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include CNA.
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