Discounted Cash Flow (DCF) Analysis Levered

The Travelers Companies, Inc. (TRV)

$171.41

+0.59 (+0.35%)
All numbers are in Millions, Currency in USD
Stock DCF: 733.87 | 171.41 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 30,28231,58131,98134,81636,88438,761.4640,734.4942,807.9444,986.9447,276.85
Revenue (%)
Operating Cash Flow 4,3805,2056,5197,2747,2747,127.727,490.547,871.828,272.518,693.59
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----7,127.727,490.547,871.828,272.518,693.59

Weighted Average Cost Of Capital

Share price $ 171.41
Beta 0.625
Diluted Shares Outstanding 254.60
Cost of Debt
Tax Rate 15.27
After-tax Cost of Debt 4.08%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.446
Total Debt 7,292
Total Equity 43,640.99
Total Capital 50,932.99
Debt Weighting 14.32
Equity Weighting 85.68
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 30,28231,58131,98134,81636,88438,761.4640,734.4942,807.9444,986.9447,276.85
Operating Cash Flow 4,3805,2056,5197,2747,2747,127.727,490.547,871.828,272.518,693.59
Capital Expenditure ----------
Free Cash Flow -----7,127.727,490.547,871.828,272.518,693.59
WACC
PV LFCF 6,717.306,652.746,588.806,525.476,462.75
SUM PV LFCF 32,947.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.11
Free cash flow (t + 1) 8,867.46
Terminal Value 215,753.37
Present Value of Terminal Value 160,389.53

Intrinsic Value

Enterprise Value 193,336.58
Net Debt 6,493
Equity Value 186,843.58
Shares Outstanding 254.60
Equity Value Per Share 733.87