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For investors considering whether Zurich Insurance Group at around CHF 536.60 represents fair value or offers a margin of safety, this article explains what that price could imply for long term holders.
The share price is down around 6.9% over the past week, 2.3% over the past month, and 10.5% year to date, while the 3 year and 5 year returns of 42.2% and 75.8% present a very different picture.
Recent coverage of Zurich Insurance Group has highlighted its position as a major European insurer, sector wide moves in insurance stocks, and how investors are balancing quality and income in financials. This context helps explain why the share price has been under some pressure in the short term, while longer term holders have seen stronger returns.
Our Simply Wall St valuation checks give Zurich Insurance Group a score of 4 out of 6. This indicates that several methods suggest the shares may be trading below their estimated worth. Next we will outline the different valuation approaches behind that score, and then conclude with a way to combine them into a clearer view of value.
Find out why Zurich Insurance Group’s -5.1% return over the last year is lagging behind its peers.
The Excess Returns model looks at how much profit Zurich Insurance Group is estimated to generate above the return that equity investors typically require, and then capitalises those extra profits into an intrinsic value per share.
For Zurich, the starting point is a Book Value of CHF200.42 per share and an Average Return on Equity of 24.45%. Based on analyst inputs, this translates into a Stable EPS of CHF52.30 per share, with the Stable EPS figure sourced from weighted future Return on Equity estimates from 10 analysts. The model applies a Cost of Equity of CHF8.37 per share, which leaves an estimated Excess Return of CHF43.92 per share after covering the required return.
The analysis also uses a Stable Book Value of CHF213.92 per share, based on weighted future Book Value estimates from 4 analysts, to project how long these excess returns could continue. Putting these pieces together, the Excess Returns model arrives at an intrinsic value that implies Zurich Insurance Group is 54.9% undervalued compared with the current share price.
Result: UNDERVALUED
Our Excess Returns analysis suggests Zurich Insurance Group is undervalued by 54.9%. Track this in your watchlist or portfolio, or discover 223 more high quality undervalued stocks.
Story Continues
ZURN Discounted Cash Flow as at Mar 2026
For a profitable company like Zurich Insurance Group, the P/E ratio is a useful way to relate what you pay for each share to the earnings the business is currently generating. It gives you a quick sense of how many years of current earnings the market is effectively pricing in.
What counts as a “normal” or “fair” P/E depends on how investors view the company’s growth prospects and risks. Higher expected growth or lower perceived risk can justify a higher P/E, while lower growth or higher risk usually points to a lower multiple.
Zurich Insurance Group is trading on a P/E of 14.28x. That sits above the wider Insurance industry average of 12.04x, but below the peer group average of 15.74x. Simply Wall St also calculates a Fair Ratio of 17.13x for Zurich Insurance Group, which is the P/E level suggested by factors such as its earnings profile, profit margin, industry, market cap and risk characteristics.
This Fair Ratio aims to be more tailored than a simple comparison with industry or peers, because it adjusts for the company’s own fundamentals rather than treating all insurers as the same. With the Fair Ratio of 17.13x above the current 14.28x, the P/E check suggests Zurich Insurance Group may be undervalued on this metric.
Result: UNDERVALUED
SWX:ZURN P/E Ratio as at Mar 2026
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Earlier we mentioned that there is an even better way to think about valuation, so let us introduce you to Narratives. Here you set out your story for Zurich Insurance Group, link that story to specific forecasts for revenue, earnings and margins, and see how that flows through to a fair value that you can compare with today’s price, all within Simply Wall St’s Community page that millions of investors use. For example, one investor might build a Narrative that lines up with the more optimistic CHF642.0 analyst target, based on confidence in earnings reaching $7.3b by around 2028 at a P/E of 14.7x. Another investor might lean toward the cautious CHF445.0 target because they are more focused on risks around expenses, market conditions and investment income. As new news or earnings come out, these Narratives update so you can keep checking whether your fair value and the current Zurich Insurance Group share price still match your view.
Do you think there’s more to the story for Zurich Insurance Group? Head over to our Community to see what others are saying!
SWX:ZURN 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 ZURN.SW.
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