DCF Studio

    TRV · NYQ · Financial Services

    The Travelers Companies, Inc.

    Also onShortfallConsensus DriftCrosscheck

    Implied value per share

    USD 748.18

    Market price

    USD 398.80

    Implied upside

    +87.6%

    10-year forecast · Excess returns over book equity · Base case · Price 2026-11-02 · Accounts to 2025-12-31

    NoteA financial, valued on excess returns over book equity.

    Excess Returns

    Return on equity
    19.9%
    Payout
    19%
    Cost of equity
    7.42%
    LineFY26FY27FY28FY29FY30FY31FY32FY33FY34FY35
    Opening book equityUSD 32.9bnUSD 37.7bnUSD 42.8bnUSD 47.9bnUSD 53.0bnUSD 58.0bnUSD 62.6bnUSD 66.7bnUSD 70.2bnUSD 72.9bn
    Return on equity19.9%19.9%19.9%19.9%19.9%19.9%19.9%19.9%19.9%19.9%
    Excess returnUSD 4.1bnUSD 4.7bnUSD 5.3bnUSD 6.0bnUSD 6.6bnUSD 7.2bnUSD 7.8bnUSD 8.3bnUSD 8.8bnUSD 9.1bn
    Present valueUSD 3.8bnUSD 4.1bnUSD 4.3bnUSD 4.5bnUSD 4.6bnUSD 4.7bnUSD 4.7bnUSD 4.7bnUSD 4.6bnUSD 4.5bn
    Book equityUSD 32.9bn
    Present value of excess returnsUSD 44.6bn
    Terminal, growing at 2.50%USD 92.8bn
    Equity valueUSD 170.3bn
    Per shareUSD 748.18

    Discount Rate

    Risk-free rate4.89%US 10-year Treasury (^TNX), 2026-11-02
    Equity risk premium4.23%Damodaran, January 2026
    Beta0.596Reported 0.397, pulled toward 1.0 (Blume)
    Cost of equity7.42%Risk-free + beta x equity risk premium
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    Yahoo Finance and RBA data. General information, not advice. Methodology.