Discounted Cash Flow (DCF) Analysis Levered

The Travelers Companies, Inc. (TRV)

$160.54

-0.93 (-0.58%)
All numbers are in Millions, Currency in USD
Stock DCF: 616.17 | 160.54 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 28,90230,28231,58131,98134,81636,486.7938,237.7640,072.7641,995.8144,011.16
Revenue (%)
Operating Cash Flow 3,7624,3805,2056,5197,2746,220.166,518.666,831.497,159.327,502.89
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----6,220.166,518.666,831.497,159.327,502.89

Weighted Average Cost Of Capital

Share price $ 160.54
Beta 0.607
Diluted Shares Outstanding 254.60
Cost of Debt
Tax Rate 17.86
After-tax Cost of Debt 3.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.625
Total Debt 7,290
Total Equity 40,873.48
Total Capital 48,163.48
Debt Weighting 15.14
Equity Weighting 84.86
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 28,90230,28231,58131,98134,81636,486.7938,237.7640,072.7641,995.8144,011.16
Operating Cash Flow 3,7624,3805,2056,5197,2746,220.166,518.666,831.497,159.327,502.89
Capital Expenditure ----------
Free Cash Flow -----6,220.166,518.666,831.497,159.327,502.89
WACC
PV LFCF 5,857.035,779.755,703.505,628.265,554
SUM PV LFCF 28,522.54

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.20
Free cash flow (t + 1) 7,652.95
Terminal Value 182,213.13
Present Value of Terminal Value 134,882.96

Intrinsic Value

Enterprise Value 163,405.50
Net Debt 6,529
Equity Value 156,876.50
Shares Outstanding 254.60
Equity Value Per Share 616.17