Travelers Return On Equity

TRV
 Stock
  

USD 186.32  2.59  1.37%   

The Travelers Companies fundamentals help investors to digest information that contributes to Travelers Companies' financial success or failures. It also enables traders to predict the movement of Travelers Stock. The fundamental analysis module provides a way to measure Travelers Companies' intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Travelers Companies stock.
This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.
  
Average Equity is likely to drop to about 20.3 B in 2022.

Travelers Return On Equity Analysis

Travelers Companies' Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
 2019 2020 2021 2022 (projected)
Cash and Equivalents494 M721 M761 M821.08 M
Total Assets110.12 B116.76 B120.47 B108.21 B
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
More About Return On Equity | All Equity Analysis

Current Travelers Companies Return On Equity

    
  13.87 %  
Most of Travelers Companies' fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, The Travelers Companies is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Travelers Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Travelers Companies is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Return On Equity. Since Travelers Companies' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Travelers Companies' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Travelers Companies' interrelated accounts and indicators.

Travelers Return On Equity Historical Pattern

Today, most investors in Travelers Companies Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Travelers Companies' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's return on equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Travelers Companies return on equity as a starting point in their analysis.
   Travelers Companies Return On Equity   
Share
       Timeline  
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Compare to competition

Travelers Shareholders Equity

Shareholders Equity

25.82 Billion

Travelers Companies Shareholders Equity is fairly stable at the moment as compared to the past year. Travelers Companies reported Shareholders Equity of 28.89 Billion in 2021
Based on the latest financial disclosure, The Travelers Companies has a Return On Equity of 13.87%. This is much higher than that of the Financial Services sector and significantly higher than that of the Insurance—Property & Casualty industry. The return on equity for all United States stocks is notably lower than that of the firm.

Travelers Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Travelers Companies' direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Travelers Companies could also be used in its relative valuation, which is a method of valuing Travelers Companies by comparing valuation metrics of similar companies.
Travelers Companies is currently under evaluation in return on equity category among related companies.

Travelers Companies Current Valuation Drivers

We derive many important indicators used in calculating different scores of Travelers Companies from analyzing Travelers Companies' financial statements. These drivers represent accounts that assess Travelers Companies' ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Travelers Companies' important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee66.75 K82.99 K85.13 K87.9 K118.9 K101.86 K
Revenue Per Employee938.38 K996.12 K1.03 M1.04 M1.13 M984.38 K

Travelers Companies ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Travelers Companies' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Travelers Companies' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Travelers Fundamentals

About Travelers Companies Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze The Travelers Companies's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Travelers Companies using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of The Travelers Companies based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Last ReportedProjected for 2022
Average Equity21.7 B20.3 B

Be your own money manager

Our tools can tell you how much better you can do entering a position in Travelers Companies without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Additionally, take a look at Travelers Companies Piotroski F Score and Travelers Companies Altman Z Score analysis. You can also try Equity Valuation module to check real value of public entities based on technical and fundamental data.

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Is Travelers Companies' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Travelers Companies. If investors know Travelers will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Travelers Companies listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.28) 
Market Capitalization
44.3 B
Quarterly Revenue Growth YOY
0.057
Return On Assets
0.0232
Return On Equity
0.14
The market value of The Travelers Companies is measured differently than its book value, which is the value of Travelers that is recorded on the company's balance sheet. Investors also form their own opinion of Travelers Companies' value that differs from its market value or its book value, called intrinsic value, which is Travelers Companies' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Travelers Companies' market value can be influenced by many factors that don't directly affect Travelers Companies' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Travelers Companies' value and its price as these two are different measures arrived at by different means. Investors typically determine Travelers Companies value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Travelers Companies' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.