The Travelers Companies, Inc. (TRV) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+137.6%

$946.98

vs $398.62 price

Levered DCF

$1,233.90

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

1.87

Grey zone

Rating

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	10.42×	11.07×	14.8×	15.74×	10.69×	13.29×	13.68×	12.69×
P/B	1.98×	1.97×	1.76×	2.06×	1.35×	1.22×	1.37×	1.4×
P/S	1.33×	1.18×	1.06×	1.2×	1.12×	1.11×	1.13×	1.06×
EV / EBITDA	8.27×	8.56×	11.49×	11.24×	8.01×	9.49×	9.82×	9.28×
Gross margin	29.4%	26.7%	21.6%	23.1%	27.2%	25.3%	24.8%	25.1%
Operating margin	16.0%	13.3%	8.1%	9.1%	12.8%	10.1%	9.9%	9.8%
Net margin	12.9%	10.8%	7.2%	7.7%	10.5%	8.4%	8.3%	8.3%
Current ratio	0.55×	1.26×	1.41×	1.22×	1.35×	0×	0×	0×
Debt / equity	0.28×	0.29×	0.32×	0.34×	0.25×	0.22×	0.25×	0.29×
Interest coverage	18.34×	15.77×	8.97×	9.56×	13.11×	9.55×	9.12×	8.41×
Dividend yield	1.5%	1.7%	2.1%	2.0%	2.2%	2.4%	2.4%	2.5%
Payout ratio	15.6%	19.0%	30.4%	30.8%	23.7%	31.9%	32.2%	32.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	19.1%	17.9%	12.0%	13.2%	12.7%	9.2%	10.1%	11.0%
Return on invested capital	12.1%	11.6%	6.9%	8.2%	8.6%	-59.7%	437.0%	-49.7%
Return on assets	4.4%	3.8%	2.4%	2.5%	3.0%	2.3%	2.4%	2.4%
Free cash flow yield	16.3%	16.5%	17.5%	14.5%	18.7%	18.3%	14.6%	13.7%
Earnings yield	9.7%	9.1%	6.8%	6.4%	9.4%	7.6%	7.4%	7.9%
Enterprise value	$73.6B	$62.4B	$51.4B	$50.9B	$45.4B	$41.4B	$41.7B	$38.2B
Net debt / EBITDA	0.96×	1.02×	1.65×	1.43×	1.15×	1.34×	1.43×	1.5×
Cash conversion cycle (days)	133	141	54	158	159	163	163	167