Is The Travelers Companies Inc (TRV) overvalued?
On Equity Rank's model estimate, TRV trades close to its fair value (7% above it). The Travelers Companies Inc (TRV) last closed at $395.20; the multi-method model fair value is $370.52.
| Price | Model fair value | Price vs model |
|---|---|---|
| $395.20 | $370.52 | 7% above |
What the answer rests on
- 4 of 11 valuation methods put TRV's value above its price and 7 put it below, so the methods disagree.
- TRV trades at 10.4 times its last year's earnings, against a median of 13.1 for 75 profitable Insurance companies.
- Over the past year the price sat below the model fair value on 79% of trading days. The gap ranged from 15% below to 10% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind TRV's fair value · What prices assume · Other companies