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
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 | 30,282 | 31,581 | 31,981 | 34,816 | 36,884 | 38,761.46 | 40,734.49 | 42,807.94 | 44,986.94 | 47,276.85 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 4,380 | 5,205 | 6,519 | 7,274 | 7,274 | 7,127.72 | 7,490.54 | 7,871.82 | 8,272.51 | 8,693.59 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | - | - | - | - | - | 7,127.72 | 7,490.54 | 7,871.82 | 8,272.51 | 8,693.59 |
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 | 30,282 | 31,581 | 31,981 | 34,816 | 36,884 | 38,761.46 | 40,734.49 | 42,807.94 | 44,986.94 | 47,276.85 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 4,380 | 5,205 | 6,519 | 7,274 | 7,274 | 7,127.72 | 7,490.54 | 7,871.82 | 8,272.51 | 8,693.59 |
Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
Free Cash Flow | - | - | - | - | - | 7,127.72 | 7,490.54 | 7,871.82 | 8,272.51 | 8,693.59 |
WACC | ||||||||||
PV LFCF | 6,717.30 | 6,652.74 | 6,588.80 | 6,525.47 | 6,462.75 | |||||
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 |