The Travelers Companies, Inc.

NYSE:TRV Stock Report

Market Cap: US$59.2b

Travelers Companies Valuation

Is TRV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TRV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TRV ($260.82) is trading below our estimate of fair value ($554.07)

Significantly Below Fair Value: TRV is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TRV?

Key metric: As TRV is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TRV. This is calculated by dividing TRV's market cap by their current earnings.
What is TRV's PE Ratio?
PE Ratio13.1x
EarningsUS$4.51b
Market CapUS$59.21b

Price to Earnings Ratio vs Peers

How does TRV's PE Ratio compare to its peers?

The above table shows the PE ratio for TRV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.6x
ALL Allstate
12.7x5.0%US$52.1b
HIG Hartford Financial Services Group
11.4x7.7%US$34.2b
CB Chubb
11.6x1.0%US$116.1b
ACGL Arch Capital Group
6.7x-14.5%US$38.2b
TRV Travelers Companies
13.1x2.6%US$59.2b

Price-To-Earnings vs Peers: TRV is expensive based on its Price-To-Earnings Ratio (13.1x) compared to the peer average (10.6x).

Price to Earnings Ratio vs Industry

How does TRV's PE Ratio compare vs other companies in the US Insurance Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UTGN UTG
1.9xn/aUS$85.49m
AORE.F American Overseas Group
2.1xn/aUS$16.68m
CUII China United Insurance Service
0.0003xn/aUS$3.13k
No more companies available in this PE range
TRV 13.1xIndustry Avg. 13.1xNo. of Companies14PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TRV is expensive based on its Price-To-Earnings Ratio (13.1x) compared to the US Insurance industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is TRV's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TRV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.1x
Fair PE Ratio13.7x

Price-To-Earnings vs Fair Ratio: TRV is good value based on its Price-To-Earnings Ratio (13.1x) compared to the estimated Fair Price-To-Earnings Ratio (13.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TRV forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$260.82
US$262.67
+0.7%
8.9%US$310.00US$214.00n/a21
Nov ’25US$245.64
US$262.67
+6.9%
8.9%US$310.00US$214.00n/a21
Oct ’25US$235.12
US$227.74
-3.1%
8.6%US$286.00US$196.00n/a22
Sep ’25US$228.07
US$224.77
-1.4%
6.8%US$250.00US$196.00n/a21
Aug ’25US$212.05
US$223.91
+5.6%
6.9%US$250.00US$196.00n/a21
Jul ’25US$202.97
US$227.24
+12.0%
6.8%US$252.00US$200.00n/a22
Jun ’25US$215.70
US$228.42
+5.9%
6.3%US$252.00US$202.00n/a22
May ’25US$213.15
US$228.01
+7.0%
6.4%US$252.00US$202.00n/a22
Apr ’25US$228.16
US$218.46
-4.3%
9.6%US$261.00US$175.60n/a23
Mar ’25US$218.82
US$217.11
-0.8%
9.5%US$261.00US$175.60n/a23
Feb ’25US$212.02
US$215.98
+1.9%
9.0%US$247.00US$175.60n/a23
Jan ’25US$190.49
US$193.35
+1.5%
8.4%US$230.00US$167.00n/a22
Dec ’24US$181.98
US$191.68
+5.3%
8.4%US$230.00US$167.00n/a20
Nov ’24US$169.28
US$191.68
+13.2%
8.4%US$230.00US$167.00US$245.6420
Oct ’24US$163.31
US$192.89
+18.1%
8.1%US$230.00US$168.00US$235.1219
Sep ’24US$162.30
US$192.89
+18.9%
8.1%US$230.00US$168.00US$228.0719
Aug ’24US$172.31
US$192.89
+11.9%
8.1%US$230.00US$168.00US$212.0519
Jul ’24US$173.66
US$195.89
+12.8%
7.3%US$230.00US$172.00US$202.9718
Jun ’24US$171.30
US$196.53
+14.7%
7.4%US$230.00US$172.00US$215.7017
May ’24US$181.76
US$196.11
+7.9%
7.6%US$230.00US$165.00US$213.1518
Apr ’24US$171.41
US$197.72
+15.4%
7.0%US$230.00US$175.00US$228.1618
Mar ’24US$184.05
US$198.39
+7.8%
6.9%US$230.00US$175.00US$218.8218
Feb ’24US$185.23
US$198.39
+7.1%
6.9%US$230.00US$175.00US$212.0218
Jan ’24US$187.49
US$183.65
-2.0%
6.6%US$220.00US$168.00US$190.4917
Dec ’23US$189.14
US$184.00
-2.7%
6.4%US$220.00US$168.00US$181.9818
Nov ’23US$182.78
US$182.67
-0.06%
6.3%US$220.00US$168.00US$169.2818

Analyst Forecast: Target price is less than 20% higher than the current share price.

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