Discounted Cash Flow (DCF) Analysis Levered

The Travelers Companies, Inc. (TRV)

$181.98

+1.36 (+-%)

All numbers are in Millions, Currency in USD

Stock DCF: 701.06 | 181.98 | 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	30,282	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	-	-	-	3	3.18	3.34	3.51	3.69	3.88	4.07
Capital Expenditure (%)
Free Cash Flow	4,380	5,205	6,519	7,277	7,277.18	7,131.06	7,494.05	7,875.51	8,276.38	8,697.67

Weighted Average Cost Of Capital

Share price	$ 181.98
Beta	0.594
Diluted Shares Outstanding	239.70
Cost of Debt
Tax Rate	15.27
After-tax Cost of Debt	4.08%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.960
Total Debt	7,292
Total Equity	43,620.61
Total Capital	50,912.61
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	-	-	-	3	3.18	3.34	3.51	3.69	3.88	4.07
Free Cash Flow	4,380	5,205	6,519	7,277	7,277.18	7,131.06	7,494.05	7,875.51	8,276.38	8,697.67
WACC
PV LFCF						6,692.69	6,601	6,510.56	6,421.36	6,333.38
SUM PV LFCF										32,558.98

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.55
Free cash flow (t + 1)	8,871.62
Terminal Value	194,980.63
Present Value of Terminal Value	141,979.03

Intrinsic Value

Enterprise Value	174,538.01
Net Debt	6,493
Equity Value	168,045.01
Shares Outstanding	239.70
Equity Value Per Share	701.06