TRV

The Travelers Companies, Inc.Financial Services / Insurance - Property & CasualtyINTACT

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, Canada, and internationally. It operates through three segments: Business Insurance, Bond & Specialty Insurance, and Personal Insurance. The Business Insurance segment offers workers' compensation, commercial automobile and property, general liability, commercial multi-peril, employers' liability, public and product liability, professional indemnity, marine, aviation, commercial property and automobile, onshore and offshore energy, construction, terrorism, personal accident, and kidnap and ransom insurance products. This segment operates through select accounts, which serve small businesses; middle accounts that serve mid-sized businesses; national accounts, which serve large companies; and national property and others that serve large and mid-sized customers, commercial trucking industry, and agricultural businesses, as well as markets and distributes its products through brokers, wholesale agents, and program managers. The Bond & Specialty Insurance segment provides surety, fidelity, management and professional liability, and other property and casualty coverages and related risk management services through independent agencies and brokers. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners' insurance to individuals. The Travelers Companies, Inc. was founded in 1853 and is based in New York, New York.

Share Price
$373.51
52W: $252.26 - $398.7
DCF Fair Value
$1750.06
+78.7% MoS
P/E (TTM)
10x
ROIC
17.8%
Operating Margin
23.7%
FCF Yield
19%
Debt / Equity
0.27x
Piotroski Score
7/9
Altman Z-Score
4.32
Market Cap
$77.9B

Price vs. Intrinsic Value Corridor

Margin of Safety Buy Zone (<25% Discount)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$1750.06
MOS Buy Target (-25%)
$1312.55
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$373.51
DCF Fair Value
$1748.94
+78.6% MoS
$14,775M
$100M$14,775M (Reported)$50,000M
11.9%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$4,000M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$154.3B
PV of Terminal Value
$215.2B
Implied Enterprise Value
$369.5B
Implied Equity Value
$365.5B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$16,533$18,501$20,702$23,166$25,923$27,089$28,308$29,582$30,913$32,304
Present Value (PV)$15,168$15,572$15,986$16,411$16,848$16,152$15,485$14,846$14,233$13,646

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-2.5% Premium
$364.55

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $37.20BVPS: $158.78
Revised Graham Formula+58.4% MoS
$896.83

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings18% Yield
$67.16 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $14.0BYield: 18%

Reverse DCF: Market Growth Expectation

EXTREMELY LOW BARRIER
-12.7% CAGR (Next 10 Yrs)

At the current price of $373.51, the market is assuming the business will compound Free Cash Flow at -12.7% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
✓ Low market hurdle: Easy for a wide-moat compounder to beat.
Autonomous Thesis Underwriting

Surveil TRV with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for The Travelers Companies, Inc.. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 23.7% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: The Travelers Companies, Inc. (TRV) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for The Travelers Companies, Inc..

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, The Travelers Companies, Inc. has an estimated DCF intrinsic fair value of $1750.06 per share compared to its current market price of $373.51. This represents an estimated 78.7% margin of safety (trading below fair value). Additionally, its classic Benjamin Graham Number stands at $364.55.

Related Financial Services Value Stocks & Sector Peers

Compare The Travelers Companies, Inc. with audited intrinsic valuation models across the Financial Services sector.

View All S&P 500 Stocks