Root Inc (ROOT) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Root Inc stock $23.34, price $43.37, that is 46.2% below the price, quality 58 out of 100. Rating: strongly overvalued. Calculated from audited financials with 4 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 5, 2026.
How to read this chart
60‑month range $3.46 – $177.69 · fair‑value band $22.13 – $26.13 · the $43.37 price screens above the $23.34 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. As of Nov 5, 2026.
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Root, Inc. provides insurance products and services in the United States. The company offers automobile and renters insurance products primarily through websites, mobile applications, and partnership channels. Root, Inc. was incorporated in 2015 and is headquartered in Columbus, Ohio.
Stock analysis
Root Inc (ROOT) currently trades at $43.37, while our model-based Fair Value estimate is $23.34, 46% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $38.00 per share, and 0 of the 4 models we run sit above the $43.37 price.
Bear case: the Asset-Based group reads lowest at $18.05, and 4 of the 4 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $22.13 (bear) to $26.13 (bull), the price of $43.37 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 58/100 (solid quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Root Inc reported revenue of $1.5B in FY2025 versus $345M in FY2021, a compound +44.8%/yr. Reported net income was $40.3M in FY2025.
Key figures
Market cap $885M Small · P/E ratio 16.1 · P/S ratio 0.57 · EPS (TTM) $3.54 · Net margin 3.7% · Return on equity 15.4% · Return on assets (EBIT) −15.6% (5-year average) · Operating margin 8.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 44 out of 100 (low confidence).
What moves the price
The share trades about 52% below its 52-week high and at its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −22% fair-value upside, at −46%, ROOT screens richer than that median.
Fair Value models
Bear$22.13Fair Value $23.34Bull$26.13
Price $43.37 · Downside -46.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($3.04 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director sold shares worth $184,964 and none bought.
SaleJonathan AllisonChief Administrative Officer10× since Mar 3, 2026: 32,710 shares, avg. $46.24$1.5MMay 15, 202610b5-1 plan
SaleDoug UlmanDirector13,152 shares at $45.11$593,287Mar 9, 2026
SaleAlexander E. TimmChief Executive Officer, Director, 10% owner6,336 shares at $83.00$525,888Dec 10, 202510b5-1 plan
SaleMahtiyar BonakdarpourPresident and CTO5,750 shares at $83.00$477,250Dec 10, 202510b5-1 plan
Plus 14 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−104.7% (2020) → 2.7% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: no profitable base year
not computed
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−38.8%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+0.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −40.2% a year for the price and −2.0% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Insurance - Property & Casualty · 100 stocks
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Root Inc Fair Value". https://www.fairvalue-calculator.com/stock/ROOT
Frequently asked questions
Is Root Inc (ROOT) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of $23.34 versus a price of $43.37, about 46% lower (overvalued).
What is the fair value of ROOT?
Our model-based fair value for Root Inc is $23.34 (as of Nov 5, 2026), built from audited fundamentals. The current price: $43.37.
What is the quality score of ROOT?
Root Inc has a Quality Score of 58/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Root Inc (ROOT)?
Our model-based price target is the fair value of $23.34 (as of Nov 5, 2026) from 4 valuation models. Cautious scenario $22.13, optimistic scenario $26.13. It is a calculation from audited fundamentals, not an analyst target.
What is the Root Inc stock forecast for 2026?
Our models put fair value at $23.34, about 46% lower versus a price of $43.37 (overvalued). Cautious scenario $22.13, optimistic scenario $26.13. The calculation is refreshed regularly with new filings.
What is the revenue of Root Inc (ROOT)?
Root Inc reported trailing-twelve-month revenue of about $1.6B (latest available figure, as of Nov 5, 2026).
Does Root Inc pay a dividend?
Root Inc does not currently pay a dividend.
What growth is priced into Root Inc (ROOT)?
For today's price to be fair in a discounted-cash-flow model, Root Inc would have to grow free cash flow by -38.8 % per year for five years (discount rate 13.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +34.3 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of ROOT use?
Our models discount Root Inc at 13.7 %: a base by market capitalisation (small), damped by beta 3.04, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Root Inc that is -38.8 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (13.7 %) and the same formula as our fair value.
How much growth has Root Inc (ROOT) delivered so far?
Over the past 5 years revenue at Root Inc grew +34.3 % a year. The price currently implies free-cash-flow growth of -38.8 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Root Inc (ROOT) growing?
The median revenue growth in the sector is +9.2 % a year. That is the yardstick for the growth priced into Root Inc (-38.8 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Root Inc (ROOT)?
The free-cash-flow yield on the price is 26.10 %: that much free cash flow Root Inc produces per unit of market value. When it exceeds the discount rate of our models (13.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Root Inc (ROOT)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Root Inc it is $23.34 per share (as of Nov 5, 2026), against a price of $43.37. It is the blended result of 4 valuation models in 3 families (Multiples, Asset-Based, Economic Profit).
Is Root Inc stock overvalued or undervalued in 2026?
As of Nov 5, 2026, ROOT trades above its calculated fair value: price $43.37, fair value $23.34, a gap of about −46% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ROOT?
No. The price is what the market pays today ($43.37); the fair value is what the company's own numbers justify ($23.34). For Root Inc the two are $20.03 per share apart. That gap is exactly why we show both numbers side by side.
How much is Root Inc worth?
The market values Root Inc at about $885M (market capitalisation, as of Nov 5, 2026). Per share that is $43.37; our models calculate a fair value of $23.34 per share.
What do the bullish and bearish scenarios say about ROOT?
Our models span a range for Root Inc: cautious scenario $22.13, base $23.34, optimistic $26.13 per share (as of Nov 5, 2026, price $43.37). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ROOT?
Root Inc trades at a price-to-earnings ratio of 16.1 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $23.34 is built from several models across several years. Other multiples: P/B 2.2, P/S 0.6, EV/EBITDA 4.3.
How solid is the balance sheet of Root Inc (ROOT)?
Balance-sheet figures for Root Inc (as of Nov 5, 2026): return on equity 15.4%, debt of 0.51 per unit of equity. They feed the Quality Score of 58/100, which measures business quality independently of the share price.
How far is ROOT from its 52-week high?
Root Inc trades at $43.37, about 52% below its 52-week high of $90.86 and at the low of $43.21 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $23.34 is for.
Which stocks are comparable to Root Inc?
From the same area (Financial Services) we also value Chubb Limited, The Progressive Corporation, The Travelers Companies, Inc, The Allstate Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Root Inc stock attractive at the current price?
The data as of Nov 5, 2026: price $43.37, calculated fair value $23.34 (−46%), Quality Score 58/100, from 4 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ROOT calculated?
We run Root Inc through 4 models from 3 families: Multiples, Asset-Based, Economic Profit. Every model gets the same audited fundamentals; the fair value of $23.34 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Root Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Root Inc (ROOT)?
The closing price on Nov 6, 2026 was $43.37. Our model-based fair value is $23.34, about 46% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Root Inc right now?
The price sits above even our optimistic bull case ($26.13). The favourable scenario is already priced in. Solid but not exceptional quality (58/100) and above fair value, neither a clear bargain nor a standout compounder. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Key figures of Root Inc
How large is the market capitalisation of Root Inc (ROOT)?
The market capitalisation of Root Inc is $885M. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Root Inc (ROOT)?
The price-to-sales ratio of Root Inc is 0.57 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Root Inc (ROOT)?
Earnings per share at Root Inc are $3.54 (price ÷ EPS = P/E 16.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Root Inc (ROOT)?
The net margin of Root Inc is 3.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Root Inc (ROOT)?
The return on equity (ROE) of Root Inc is 15.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Root Inc (ROOT)?
On an EBIT basis the return on assets of Root Inc is −15.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Root Inc (ROOT)?
The operating margin of Root Inc is 8.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Root Inc (ROOT)?
Revenue at Root Inc is growing +1.6% versus a year earlier (3y avg +69.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Root Inc (ROOT)?
Earnings per share at Root Inc are growing +15.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Root Inc (ROOT) hold?
Root Inc holds more cash than debt, $489M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Nov 5, 2026