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If you are wondering whether QBE Insurance Group is priced attractively at its current share price, or if the easy value has already been taken, this article walks you through what the numbers say. QBE's share price closed at A$21.67, with returns of 8.0% over 7 days, 8.9% over 30 days, 9.4% year to date, 4.3% over 1 year, 60.8% over 3 years and 164.2% over 5 years, which provides plenty of history for a closer look at value. Recent coverage of QBE has focused on its position as a major general insurer and how market conditions and underwriting trends may influence investor sentiment over time. This context helps frame whether the current share price is mainly reflecting sector wide factors or something more specific to QBE. On our valuation checks QBE scores 5 out of 6. Next we compare what different valuation methods suggest about the share price, before finishing with a way to tie these methods together into a clearer view of value.

QBE Insurance Group delivered 4.3% returns over the last year. See how this stacks up to the rest of the Insurance industry.

Approach 1: QBE Insurance Group Excess Returns Analysis

The Excess Returns model looks at how much profit a company can earn on its equity above the return that shareholders require, then capitalises that stream of "excess" profit into an intrinsic value per share.

For QBE Insurance Group, the inputs are quite clear. Book Value is A$7.75 per share and Stable EPS is A$1.49 per share, based on weighted future Return on Equity estimates from 12 analysts. The Average Return on Equity sits at 15.85%. Against this, the model uses a Cost of Equity of A$0.65 per share, which implies an Excess Return of A$0.85 per share. Stable Book Value is A$9.43 per share, sourced from weighted future Book Value estimates from 6 analysts.

Feeding these figures into the Excess Returns framework produces an estimated intrinsic value of A$48.48 per share. Compared with the recent share price of A$21.67, this implies the shares trade at a 55.3% discount. On this approach, the model indicates that QBE is materially undervalued.

Result: UNDERVALUED

Our Excess Returns analysis suggests QBE Insurance Group is undervalued by 55.3%. Track this in your watchlist or portfolio, or discover 9 more high quality undervalued stocks.QBE Discounted Cash Flow as at Feb 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for QBE Insurance Group.

Approach 2: QBE Insurance Group Price vs Earnings

For a profitable company like QBE Insurance Group, the P/E ratio is a straightforward way to connect the share price with the earnings that support it. It lets you see how many dollars investors are currently paying for each dollar of earnings.

Story Continues

What counts as a "fair" P/E usually reflects how the market sees a stock's growth potential and risk profile. Higher expected growth or lower perceived risk can justify a higher P/E, while lower growth or higher risk can point to a lower, more cautious multiple.

QBE currently trades on a P/E of 10.88x. That sits below the Insurance industry average of 12.28x and the peer group average of 17.60x. Simply Wall St's Fair Ratio for QBE is 17.99x, which is its proprietary view of what P/E might fit the company, based on factors such as earnings growth, profit margins, risk profile, industry and market cap. This tailored Fair Ratio can be more informative than a simple comparison to peers or the broad industry, because it accounts for QBE's specific characteristics rather than treating all insurers as identical. Comparing QBE's P/E of 10.88x to the Fair Ratio of 17.99x indicates that the shares may be undervalued on this measure.

Result: UNDERVALUEDASX:QBE P/E Ratio as at Feb 2026

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Upgrade Your Decision Making: Choose your QBE Insurance Group Narrative

Earlier we mentioned that there is an even better way to understand valuation. Let us introduce you to Narratives, where you tell the story behind the numbers by setting your own fair value and assumptions for QBE Insurance Group's future revenue, earnings and margins. You then link that story to a forecast and a fair value that you can compare with the current share price on Simply Wall St's Community page, which is used by millions of investors. Narratives automatically update when new information such as news or earnings arrives. One investor might build a Narrative that aligns with the higher A$26.20 analyst price target, while another might lean toward the lower A$16.50 view. You can quickly see how those different perspectives translate into different fair values and potential investment decisions.

Do you think there's more to the story for QBE Insurance Group? Head over to our Community to see what others are saying!ASX:QBE 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 QBE.AX.

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