Travelers Stock Valuation

TRV
 Stock
  

USD 159.98  1.02  0.64%   

What is the acquisition price tag of The Travelers Companies? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Travelers Companies, is its stock price multiplied by the total number of shares outstanding, calculating Travelers Companies' enterprise value requires a different approach. It uses Travelers Companies' balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Free Cash Flow is likely to drop to about 3.5 B in 2022. Enterprise Value is likely to drop to about 32.8 B in 2022.
The Travelers Companies has a current Real Value of $164.96 per share. The regular price of the company is $159.98. At this time, the company appears to be fairly valued. Our model measures the value of The Travelers Companies from inspecting the company fundamentals such as Shares Outstanding of 237.31 M, return on equity of 13.70 %, and Operating Margin of 15.35 % as well as reviewing its technical indicators and Probability Of Bankruptcy. In general, we recommend buying undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
  
Travelers Companies Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Travelers Companies's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.

Travelers Most Recent Valuation Data

Price Book
1.64
EPS Estimate Next Quarter
2.51
Price Sales
1.05
Forward Annual Dividend Yield
0.0234
EBITDA
5.5 B
Dividend Share
3.57
Ex Dividend Date
2022-09-08
Fairly Valued
Today 159.98
Please note that Travelers Companies' price fluctuation is very steady at this time. Calculation of the real value of The Travelers Companies is based on 3 months time horizon. Increasing Travelers Companies' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for The Travelers Companies is useful when determining the fair value of the Travelers stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Travelers Companies. Since Travelers Companies is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Travelers Stock. However, Travelers Companies' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
143.98
Downside
164.95
Real Value
166.49
Upside
Estimating the potential upside or downside of The Travelers Companies helps investors to forecast how Travelers stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Travelers Companies more accurately as focusing exclusively on Travelers Companies' fundamentals will not take into account other important factors:
Earnings
Estimates (8)
LowProjected EPSHigh
12.1012.5813.25
Details
Hype
Prediction
LowEstimated ValueHigh
158.24159.78161.32
Details
Potential
Annual Dividend
LowIncome Per ShareHigh
3.373.493.60
Details
11 Analysts
Consensus
LowTarget PriceHigh
152.00166.70185.00
Details
Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Travelers Companies' intrinsic value based on its ongoing forecasts of Travelers Companies' financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Travelers Companies' closest peers. When choosing an evaluation method for The Travelers Companies, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.

Travelers Companies Investments

60.14 Billion

Travelers Valuation Drivers Correlation

Many accounts on the financial statements of The Travelers Companies are highly interrelated and sometimes correlated. Consequently, when conducting Travelers's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Travelers
Click cells to compare fundamentals

Travelers Valuation Trend

Knowing Travelers Companies' actual value is paramount for traders to make sound investment determinations. Travelers Companies' real value is not only important for the investor to make better decisions but also for a more accurate overall view of Travelers Companies' financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Travelers Companies' enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.

Travelers Market Cap

The Travelers Companies is currently regarded as top stock in market capitalization category among related companies. Market capitalization of Insurance—Property & Casualty industry is at this time estimated at about 3.57 Trillion. Travelers Companies claims roughly 37.97 Billion in market capitalization contributing just under 2% to equities under Insurance—Property & Casualty industry.
Capitalization  Revenue  Valuation  Total debt  Workforce

Travelers Companies Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Travelers Companies's current stock value. Our valuation model uses many indicators to compare Travelers Companies value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Travelers Companies competition to find correlations between indicators driving Travelers Companies's intrinsic value. More Info.
The Travelers Companies is currently regarded as top stock in last dividend paid category among related companies. It is currently regarded as top stock in five year return category among related companies reporting about  2.52  of Five Year Return per Last Dividend Paid. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Travelers Companies by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Travelers Companies' Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Travelers Companies' earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Travelers Companies' worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Travelers Companies and how it compares across the competition.

About Travelers Companies Valuation

The equity valuation mechanism determines the current worth of The Travelers Companies on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of The Travelers Companies. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of The Travelers Companies based exclusively on its fundamental and basic technical indicators. By analyzing Travelers Companies's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Travelers Companies's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Travelers Companies. We calculate exposure to Travelers Companies's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Travelers Companies's related companies.
Fiscal Year End
December
Industry
Insurance-Property & Casualty
Concentration
Property & Casualty Insurance
Full Time Employees
30.2 K
Service Category
Insurance
Employer Id Number
41-0518860
Last ReportedProjected for 2022
Gross Profit11.3 B10.2 B
Profit Margin 10.52  11.43 
The Travelers Companies, Inc., through its subsidiaries, provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals in the United states and internationally. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York. Travelers Companies operates under InsuranceProperty Casualty classification in the United States and is traded on New York Stock Exchange. It employs 30184 people.
Travelers Companies' stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Travelers Companies' value is low or high relative to the company's performance and growth projections. Determining the market value of Travelers Companies can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Travelers Companies represents a small ownership stake in the entity. As a stockholder of Travelers, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Travelers Companies Dividends Analysis For Valuation

Dividend Yield is likely to climb to 0.0271 in 2022, whereas Payment of Dividends and Other Cash Distributions is likely to drop (939.3 M) in 2022. . Travelers Companies Accumulated Retained Earnings Deficit are fairly stable at the moment as compared to the past year. Travelers Companies reported Accumulated Retained Earnings Deficit of 28.98 Billion in 2021. Price to Earnings Ratio is likely to climb to 11.44 in 2022, whereas Earning Before Interest and Taxes EBIT is likely to drop slightly above 3.6 B in 2022.
Last ReportedProjected for 2022
Payment of Dividends and Other Cash Distributions-870.5 M-939.3 M
Dividend Yield 0.0242  0.0271 
Dividends per Basic Common Share 2.36  1.88 
There are various types of dividends Travelers Companies can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Travelers shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from The Travelers Companies directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Travelers pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Travelers Companies by the value of the dividends paid out.

Travelers Companies Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Travelers Companies does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.17
Earnings Quarterly Growth-41.00%
Revenue Growth5.20%
Payout Ratio24.81%
Enterprise Value To Ebitda7.42
Earnings Growth-38.00%
Enterprise Value To Revenue1.14

Travelers Companies Current Valuation Indicators

Valuation refers to the process of determining the present value of The Travelers Companies and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Travelers we look at many different elements of the entity such as Travelers's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Travelers Companies' valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Travelers Companies' valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Travelers Companies, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Travelers Companies' valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Travelers Companies' worth.
Additionally, take a look at World Market Map. Note that the The Travelers Companies information on this page should be used as a complementary analysis to other Travelers Companies' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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When running The Travelers Companies price analysis, check to measure Travelers Companies' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Travelers Companies is operating at the current time. Most of Travelers Companies' value examination focuses on studying past and present price action to predict the probability of Travelers Companies' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Travelers Companies' price. Additionally, you may evaluate how the addition of Travelers Companies to your portfolios can decrease your overall portfolio volatility.
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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
-0.38
Market Capitalization
37.7 B
Quarterly Revenue Growth YOY
0.052
Return On Assets
0.0245
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.