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EVER Stock Risk & Deep Value Analysis

EverQuote Inc

Communication Services • Internet Content & Information

DVR Score

7.7

out of 10

Solid Pick

What You Need to Know About EVER Stock

We analyzed EverQuote Inc using our deep value framework. Sign in to see our full verdict and DVR Score.

We ran EVER through our deep value framework — analyzing financial health, distress signals, competitive moat, and risk factors. Our risk assessment: Moderate. Here's what we found.

Updated Mar 25, 2026Run Fresh Analysis →

EVER Risk Analysis & Red Flags

What Could Go Wrong

The auto insurance advertising market recovery could stall or reverse more severely than anticipated, leading to prolonged revenue deceleration below management's Q1 guidance. This would make it difficult for EverQuote to regain growth momentum, potentially suppressing its valuation multiple and delaying or preventing its 10x growth potential.

Risk Matrix

Overall

Moderate

Financial

Low

Market

Medium

Competitive

Medium

Execution

Medium

Regulatory

Low

Red Flags

  • Q1 2026 revenue guidance ($175-185M) is below prior analyst consensus ($194M).

  • Significant insider selling ($1.24M-$1.34M) over the last 90 days, including a CTO sale at $25.05.

  • Analyst price target reductions by major firms (JPMorgan, Needham) post-Q4 earnings despite the beat.

Upcoming Risk Events

  • 📅

    Q1 2026 earnings miss or weak Q2 guidance

  • 📅

    Further tightening of insurance carrier ad budgets

  • 📅

    Increased competitive pressure from new entrants or large tech firms

When to Reconsider

  • 🚪

    Exit if quarterly revenue growth turns negative or falls significantly below current guidance without clear mitigating factors.

  • 🚪

    Sell if the company announces a capital raise that causes significant dilution without clear, high-ROI use of funds.

  • 🚪

    Exit if key insider selling accelerates further or if the CEO/CFO begin significant sales.

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What Does EverQuote Inc (EVER) Do?

Market Cap

$589.00M

Sector

Communication Services

Industry

Internet Content & Information

Employees

324

EverQuote, Inc. operates an online marketplace for insurance shopping in the United States. The company offers automotive, and home and renters insurance, as well as campaign management tools. The company serves insurance carriers and agents, and indirect distributors. The company was formerly known as AdHarmonics, Inc., and changed its name to EverQuote, Inc. in November 2014. EverQuote, Inc. was incorporated in 2008 and is based in Cambridge, Massachusetts.

Visit EverQuote Inc Website

Investment Thesis

EverQuote is a financially robust, AI-driven leader positioned to capture significant share in the digital transformation of the insurance sector. Despite recent near-term guidance challenges and insider selling, its strong balance sheet, profitability, and low valuation offer compelling risk-reward for investors willing to look past short-term volatility for a potential 10x return as the auto insurance market normalizes and the company executes on its long-term strategic vision.

Is EVER Stock Undervalued?

EverQuote (EVER) continues to exhibit strong potential for significant growth, underpinned by its advanced AI-driven platform and extensive data ecosystem within the expanding digital insurance market. The company boasts an exceptionally strong financial position with $171M in cash, no debt, and implied positive free cash flow, along with impressive Q4 2025 profitability (32.3% YoY revenue growth, 14.34% net margin). However, the Q1 2026 revenue guidance falling below consensus, coupled with significant insider selling ($1.24M-$1.34M in recent months) and recent analyst price target reductions, introduces near-term uncertainty regarding leadership's conviction and the pace of the auto insurance advertising market recovery. The 10x potential remains due to its scalable model and low trailing P/E of 5.90, but the path has become more volatile, warranting a slight adjustment in score to reflect these new risks and a less 'consistent' near-term outlook.

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EVER Price Targets & Strategy

12-Month Target

$25.00

Bull Case

$35.00

Bear Case

$12.00

Valuation Basis

10x forward P/E applied to estimated $2.50 FY26 EPS = $25.00

Entry Strategy

Dollar-cost average between $15.00-$16.50, building a position on any dips towards recent support levels around $14.50.

Exit Strategy

Take initial profits at $25-$28, with a stop-loss order placed if the stock consistently trades below $13.50.

Portfolio Allocation

7-10% for aggressive risk tolerance, 3-5% for moderate.

Price Targets & Strategy

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Is EVER Financially Healthy?

Valuation

P/E Ratio

6.25

Forward P/E

13.89

EV/EBITDA

10.67

PEG Ratio

1.89

Price/Book

3.62

Price/Sales

0.97

Profitability

Gross Margin

96.57%

Operating Margin

8.79%

Net Margin

14.30%

Return on Equity

57.65%

Revenue Growth

32.30%

EPS

$2.75

Balance Sheet

Current Ratio

3.50

Quick Ratio

3.40

Cash & Equivalents

$171.00M

Cash Flow

Operating Cash Flow

$92.35M

Free Cash Flow

$87.27M

EBITDA

$56.20M

Other

Beta (Volatility)

0.54

Does EVER Have a Competitive Moat?

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Moat Rating

🛡️ Narrow

Moat Trend

Expanding

Moat Sources

3 Identified

Network EffectsIntangible Assets/IP (proprietary data and AI algorithms)Switching Costs (for carriers integrated into the platform)

EverQuote's robust data and AI-driven platform creates a virtuous cycle (network effect) by attracting more consumers, which in turn attracts more carriers, making it increasingly difficult for new entrants to compete. The proprietary data acts as an intangible asset, strengthening this moat over time, though it is vulnerable to shifts in carrier spending.

Moat Erosion Risks

  • Prolonged or severe tightening of insurance carrier advertising budgets.
  • Emergence of superior AI-powered platforms from larger tech companies or direct-to-consumer insurance models.
  • Data privacy regulations impacting data collection and usage.

EVER Competitive Moat Analysis

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EVER Market Intelligence

Sentiment & Insider Activity

Social Sentiment

Neutral to Cautiously Bullish; mixed reactions to Q4 beat vs. Q1 guidance.

Institutional Sentiment

Mixed; recent analyst upgrades countered by significant price target reductions from key investment banks.

Insider Activity (Form 4)

CAO Jon Ayotte sold 1,730 shares at $15.56 on Feb 24-25, 2026, and was granted RSUs. CTO David Brainard sold 5,709 shares at $25.05 in Jan 2026. Total insider sales over last 3 months amounted to $1.24M-$1.34M.

Options Flow

Normal options activity; no unusual or significant put/call ratio shifts flagged.

Earnings Intelligence

Next Earnings

Estimated late April/early May 2026 (Q1 2026)

Surprise Probability

Medium

Historical Earnings Pattern

Q4 earnings beat drove initial upgrades, but subsequent Q1 guidance miss led to analyst target cuts and stock price decline. Market reacts strongly to forward guidance.

Key Metrics to Watch

Q1 2026 Revenue (vs. $175-185M guidance)Q2 2026 Guidance (crucial for future outlook)Customer Acquisition Costs (CAC)Profitability metrics (net margin, FCF)

Competitive Position

Top Competitor

Not explicitly named in research; likely other online insurance lead generators or marketplaces

Market Share Trend

Stable; implied strong position in auto insurance, but no specific data on recent shifts.

Valuation vs Peers

Trading at a significant discount based on its trailing P/E of 5.90, assuming sustained profitability and growth potential.

Competitive Advantages

  • Proprietary AI-driven platform and data ecosystem
  • Strong network effects with consumers and insurance carriers
  • Established position in the large auto insurance lead generation market

Market Intelligence

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What Could Drive EVER Stock Higher?

Near-Term (0-6 months)

  • Q1 2026 Earnings report (estimated late April/early May 2026)
  • Potential re-acceleration of auto insurance carrier ad spending

Medium-Term (6-18 months)

  • Expansion into new insurance verticals or product lines
  • Strategic partnerships to broaden marketplace reach
  • Increased adoption of AI tools by insurance carriers

Long-Term (18+ months)

  • Sustained market leadership in digital insurance comparison
  • Strong network effects driving exponential user and carrier growth
  • Disruption of traditional insurance distribution models

Catalysts & Growth Drivers

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What's the Bull Case for EVER?

  • Re-acceleration of quarter-over-quarter revenue growth and improving forward guidance.

  • Expansion of gross and operating margins.

  • Positive shift in insider buying trends or reduced insider selling.

Bull Case Analysis

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Competing with EVER

See how EverQuote Inc compares to related companies

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EverQuote Inc

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$589.0M7.76.3$692.5M14.3%32.3%

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FAQ

What is the DVR Score for EverQuote Inc (EVER)?

As of March 25, 2026, EverQuote Inc has a DVR Score of 7.7 out of 10, placing it in the "Solid Pick" category. This score is generated by our AI-powered deep value analysis framework that evaluates growth potential, financial health, competitive moat, and risk factors.

What is the market capitalization of EverQuote Inc?

EverQuote Inc's market capitalization is approximately $589.0M. The company operates in the Communication Services sector within the Internet Content & Information industry.

What ticker symbol does EverQuote Inc use?

EVER is the ticker symbol for EverQuote Inc. The company trades on the NGM.

What is the risk level for EVER stock?

Our analysis rates EverQuote Inc's overall risk as Moderate. This assessment considers execution risk, market risk, financial risk, competitive risk, and regulatory risk. For a full breakdown, see the risk analysis section above.

What is the P/E ratio of EVER?

EverQuote Inc currently has a price-to-earnings (P/E) ratio of 6.3. This is below the market average, which could indicate the stock is undervalued or facing headwinds.

Is EverQuote Inc's revenue growing?

EverQuote Inc has reported revenue growth of 32.3%. The company is showing strong top-line momentum.

Is EVER stock profitable?

EverQuote Inc has a profit margin of 14.3%. The company is profitable but margins are modest.

How often is the EVER DVR analysis updated?

Our AI-powered analysis of EverQuote Inc is refreshed regularly to incorporate the latest financial data, market conditions, and news. The most recent update was on March 25, 2026.

Important Disclaimer – Not Financial Advice

Deep Value Reports is an independent research platform for educational and informational purposes only. We are not financial advisors, investment advisors, or licensed professionals. The analysis, scores, and information provided on this page for EVER (EverQuote Inc) should not be construed as personalized investment advice, a recommendation to buy or sell any security, or an offer to provide investment advisory services.

All investments involve risk, including the potential loss of principal. Past performance does not guarantee future results. Always conduct your own research, consider your financial situation, and consult with a qualified financial advisor before making any investment decisions.

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