Stock fact sheet · data as of
Employers Holdings, Inc. (EIG): fair value, margin of safety and Wheel Score
Financial Services · Insurance - Specialty · United States · Defensive
Is EIG undervalued?
Employers Holdings, Inc. (EIG) closed at 50.45 on 16 Oct 2026, 140% above the GLS average fair value of 21.00. 8 of the 9 models that produced a number value the shares below the current price. A gap this wide usually means the market is paying for growth or a story the trailing numbers do not show yet; the models work from filed results, not forecasts, so they are conservative by design.
There is a wide gap between GLS Growth (1.22) and DCF (85.36). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files EIG under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for EIG
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 85.36 | +69% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 21.08 | -58% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 9.32 | -82% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 2.99 | -94% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 1.22 | -98% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 24.93 | -51% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 20.03 | -60% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 19.42 | -62% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 4.65 | -91% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -28.81 | -157% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 0.0000 | -100% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Employers Holdings, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the Sunday Scan's "6 or more" rule with room to spare. A GLS Moat score of 3.1/10 is a weak reading: the ten-year history the score grades (revenue, EPS, book value, margins, cash flow, share count, ROIC) has not been steady, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 1.1%, ROE 1.1%, ROA 0.3% - with debt at 0.04 times equity and a free-cash-flow yield of 2.3%.
The dividend yield is 2.62% at a payout ratio of 357%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Insurance Operations 100% (quarter Q2 FY2026).
Institutional ownership scores 8/10, insider activity 3/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 1.1% |
|---|---|---|---|
| GLS Moat | 3.1 / 10 | ROE | 1.1% |
| Debt / equity | 0.04 | ROA | 0.3% |
| Free-cash-flow yield | 2.3% | Payout ratio | 357% |
| Institutions | 8 / 10 | Insiders · Congress | 3 · 5 / 10 |
Wheel Score 46: Weak
With a Wheel Score of 46 Employers Holdings, Inc. sits in the Weak band. The parts - Value 0/25, Health 16/20, Moat 5/15, Premium 17/20, Stability 9/20 - show where: Value (0/25) scores lowest.
Implied volatility is 32% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (17 of 20 points). Chain open interest is thin - 56 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 138k shares a day on a market cap of $906M, with a beta of 0.47 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 9 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -140% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 5 / 15 | moat 3.1/10 | |
| Premium | 17 / 20 | implied volatility 32% | |
| Stability | 9 / 20 | 138k shares/day, $906M cap, beta 0.47 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Employers Holdings, Inc. reports earnings on 28 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Insurance - Specialty
The 12 companies below are the closest to Employers Holdings, Inc. by market cap within the Insurance - Specialty industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
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|---|---|---|---|---|---|
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| NMIH NMI Holdings, Inc. | 40.10 | 97.71 | +59% | 88Prime | $3.0B |
| AGO Assured Guaranty Ltd. | 69.86 | 187.20 | +63% | 77Good | $3.1B |
| MBI MBIA Inc. | 4.39 | 15.52 | +72% | 45Weak | $224M |
| OSG Octave Specialty Group, Inc. | 4.60 | 9.52 | +52% | 45Weak | $207M |
| RDN Radian Group Inc. | 33.41 | 81.50 | +59% | 85Prime | $4.4B |
| JRVR James River Group Holdings, Ltd. | 3.71 | 15.89 | +77% | 60Fair | $172M |
| MTG MGIC Investment Corporation | 27.61 | 49.38 | +44% | 89Prime | $5.7B |
| ESNT Essent Group Ltd. | 63.76 | 105.84 | +40% | 83Prime | $5.7B |
| ACT Enact Holdings Inc. | 45.67 | 66.03 | +31% | 87Prime | $6.3B |
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Start free See the Sunday ScanQuestions about EIG
Is EIG undervalued right now?
No: at 50.45 the stock trades 140% above the GLS average fair value of 21.00 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of EIG and what does it mean?
EIG scores 46 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for EIG?
21.00 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Employers Holdings, Inc. report earnings next?
The next earnings report is due on 28 Oct 2026 (after the close), 12 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does EIG have listed options, and how liquid are they?
Yes. The nightly snapshot found 102 listed contracts with 56 open interest across all expiries and implied volatility of 32% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.