Explain this page
Arphra AIPlain-English read on The Travelers Companies, Inc.’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Headline | ||||||||
| Market cap | — | — | — | $54.92B | $65.03B | — | — | — |
| Enterprise value | — | — | — | $62.39B | $73.59B | — | — | — |
| Multiples | ||||||||
| P / E | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | 1.34 | 1.51 | — | — | — |
| EV / FCF | — | — | — | 6.88 | 6.94 | — | — | — |
| Yields | ||||||||
| Earnings yield | — | — | — | +9.10% | +9.67% | — | — | — |
| Free cash flow yield | — | — | — | +16.52% | +16.31% | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Margins | ||||||||
| Gross margin | +27.21% | +23.11% | +21.59% | +26.70% | +44.25% | +31.23% | +30.60% | +30.44% |
| Operating margin | +12.80% | +9.09% | +8.15% | +13.31% | +15.97% | +12.64% | +12.27% | +12.24% |
| EBITDA margin | +16.28% | +12.28% | +10.80% | +15.70% | +18.23% | +14.75% | +14.49% | +14.87% |
| EBIT margin | +13.78% | +10.04% | +9.06% | +14.16% | +16.84% | +13.14% | +13.39% | +12.96% |
| Pre-tax margin | +12.80% | +9.09% | +8.15% | +13.31% | +15.97% | +12.81% | +12.74% | +12.19% |
| Net margin | +10.52% | +7.70% | +7.23% | +10.77% | +12.88% | +10.09% | +10.20% | +10.17% |
| Cost structure | ||||||||
| Cost of revenue / sales | +72.79% | +76.89% | +78.41% | +73.30% | +55.75% | +68.26% | +69.53% | +67.87% |
| R&D intensity | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| SG&A intensity | +13.43% | +13.04% | +12.51% | +12.53% | +12.53% | +12.61% | +12.18% | +12.24% |
| Effective tax rate | +17.86% | +15.27% | +11.27% | +19.11% | +19.34% | +16.37% | +16.11% | +17.21% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Returns | ||||||||
| Return on equity (ROE) | +12.68% | +13.18% | +12.00% | +17.94% | +19.12% | +16.54% | +16.68% | +16.04% |
| Return on assets (ROA) | +3.04% | +2.46% | +2.37% | +3.75% | +4.38% | +3.40% | +3.40% | +3.49% |
| Return on capital (ROC) | +12.32% | +11.62% | +10.23% | +17.22% | +18.49% | +15.96% | +15.33% | +14.90% |
| Return on invested capital (ROIC) | +10.12% | +9.85% | +9.08% | +13.93% | +14.91% | +12.74% | +12.73% | +12.39% |
| Asset turnover | +28.90% | +31.88% | +32.84% | +34.86% | +33.98% | +33.72% | +33.34% | +34.31% |
| DuPont · ROE decomposition | ||||||||
| Net margin | +10.52% | +7.70% | +7.23% | +10.77% | +12.88% | +10.09% | +10.20% | +10.17% |
| Asset turnover (× revenue / assets) | +28.90% | +31.88% | +32.84% | +34.86% | +33.98% | +33.72% | +33.34% | +34.31% |
| Equity multiplier (× assets / equity) | +417.02% | +536.72% | +505.51% | +478.00% | +436.88% | +486.17% | +490.69% | +459.68% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Turnover | ||||||||
| Asset turnover | 0.29 | 0.32 | 0.33 | 0.35 | 0.34 | 0.34 | 0.33 | 0.34 |
| Fixed-asset turnover | — | — | — | — | — | — | — | — |
| Inventory turnover | — | — | — | — | — | — | — | — |
| Receivables turnover | 1.65 | 1.74 | 1.85 | 2.02 | 2.14 | — | — | — |
| Payables turnover | 5.90 | 7.07 | 8.57 | 9.10 | 7.66 | — | — | — |
| Days outstanding | ||||||||
| Days sales outstanding (DSO) | 220.60 | 209.86 | 197.28 | 181.08 | 170.17 | — | — | — |
| Days inventory outstanding (DIO) | — | — | — | — | — | — | — | — |
| Days payables outstanding (DPO) | 61.86 | 51.66 | 42.61 | 40.10 | 47.67 | — | — | — |
| Cash conversion cycle | 158.73 | 158.21 | 154.67 | 140.98 | 122.51 | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 1.99 | 2.27 | 2.58 | 1.82 | 1.69 | 1.94 | 1.97 | 1.96 |
| FCF / Net income | 1.99 | 2.27 | 2.58 | 1.82 | 1.69 | 1.92 | 1.97 | 1.92 |
| FCF margin | +20.89% | +17.52% | +18.64% | +19.54% | +21.72% | +19.38% | +20.10% | +19.57% |
| OCF margin | +20.89% | +17.52% | +18.64% | +19.54% | +21.72% | +19.56% | +20.05% | +19.97% |
| CapEx / Revenue | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| CapEx / D&A | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — |
| Stock-based comp / Revenue | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 14.49 | 11.77 | 12.79 | 21.47 | 27.43 | 28.05 | 28.61 | 28.91 |
| EPS · basic | 14.63 | 11.91 | 12.93 | 21.76 | 27.84 | 28.58 | 28.76 | 29.50 |
| Book value / share | 115.18 | 89.95 | 107.33 | 120.57 | 144.53 | 117.60 | 121.38 | 134.38 |
| Tangible BV / share | 87.84 | 60.43 | 74.77 | 85.58 | 109.73 | 117.60 | 121.38 | 134.38 |
| Sales / share | 138.82 | 153.93 | 178.18 | 200.90 | 214.53 | 192.80 | 198.55 | 211.95 |
| Operating CF / share | 29.00 | 26.97 | 33.21 | 39.26 | 46.60 | 37.71 | 39.81 | 42.33 |
| Free cash flow / share | 29.00 | 26.97 | 33.21 | 39.26 | 46.60 | 37.36 | 39.91 | 41.47 |
| Dividends / share | 3.46 | 3.65 | 3.91 | 4.12 | 4.30 | 4.02 | 4.24 | 4.34 |
| Payout ratio | +23.73% | +30.79% | +30.36% | +19.02% | +15.57% | +20.69% | +20.93% | +20.13% |
| Retention ratio | +76.27% | +69.21% | +69.64% | +80.98% | +84.43% | +79.31% | +79.07% | +79.87% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E | 7y CAGR |
|---|---|---|---|---|---|---|---|---|---|
| Top-line | |||||||||
| Revenue · YoY | — | +5.97% | +12.13% | +12.22% | +5.17% | -10.30% | +3.81% | +5.73% | +4.72% |
| Gross profit · YoY | — | -10.01% | +4.75% | +38.78% | +74.31% | -36.70% | +1.73% | +5.17% | +6.41% |
| Profit | |||||||||
| Operating income · YoY | — | -24.76% | +0.51% | +83.33% | +26.15% | -29.02% | +0.82% | +5.45% | +4.04% |
| EBITDA · YoY | — | -20.06% | -1.37% | +63.06% | +22.15% | -27.43% | +2.00% | +8.53% | +3.37% |
| Net income · YoY | — | -22.39% | +5.24% | +67.13% | +25.79% | -29.73% | +4.93% | +5.46% | +4.22% |
| Operating | |||||||||
| EBIT · YoY | — | -22.78% | +1.13% | +75.39% | +25.09% | -29.99% | +5.74% | +2.39% | +3.80% |
| R&D · YoY | — | — | — | — | — | — | — | — | — |
| Per-share | |||||||||
| EPS · diluted · YoY | — | -18.77% | +8.67% | +67.87% | +27.76% | +2.28% | +1.98% | +1.06% | +10.37% |
| EPS · basic · YoY | — | -18.59% | +8.56% | +68.29% | +27.94% | +2.65% | +0.63% | +2.60% | +10.54% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|---|---|
| Leverage | ||||||||
| Total debt | $7.29B | $7.29B | $8.03B | $8.03B | $9.27B | $7.97B | $8.61B | $9B |
| Net debt | $6.53B | $6.49B | $7.53B | $7.47B | $8.56B | $7.41B | $8.02B | $8.36B |
| Net debt / EBITDA | 1.15 | 1.43 | 1.69 | 1.02 | 0.96 | 1.15 | 1.22 | 1.17 |
| Debt / equity | 0.25 | 0.34 | 0.32 | 0.29 | 0.28 | 0.30 | 0.31 | 0.30 |
| Debt / assets | +6.05% | +6.30% | +6.37% | +6.03% | +6.45% | +6.13% | +6.31% | +6.42% |
| Equity / assets | +23.98% | +18.63% | +19.78% | +20.92% | +22.89% | +20.57% | +20.38% | +21.75% |
| Coverage | ||||||||
| EBITDA / interest expense | 16.67 | 12.91 | 11.89 | 18.59 | 20.94 | 16.46 | 16.50 | 16.90 |
| Operating income / interest | 13.11 | 9.56 | 8.97 | 15.77 | 18.34 | 14.10 | 13.97 | 13.91 |
| Interest expense | $340M | $351M | $376M | $392M | $425M | $392.37M | $399.3M | $422.97M |
| Liquidity | ||||||||
| Current ratio | 1.35 | 1.22 | 1.25 | 1.26 | 0.55 | — | — | — |
| Quick ratio | 1.34 | 1.20 | 1.23 | 1.25 | 0.53 | — | — | — |
| Cash ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | — | — | — |
| Working capital | $27.18B | $17.47B | $21.33B | $23.83B | -$41.67B | — | — | — |
| Working capital / revenue | +78.08% | +47.35% | +51.55% | +51.33% | -85.35% | — | — | — |
Sourced from key_metrics + financial_ratios (loaded by load_fundamentals_extended.py).
Valuation
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| P / E | — | — |
| P / B | — | — |
| EV / EBITDA | — | — |
| EV / Sales | 1.51x | 1.34x |
| Earnings yield | 9.7% | 9.1% |
| FCF yield | 16.3% | 16.5% |
Returns
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Gross margin | — | — |
| Operating margin | — | — |
| Net margin | — | — |
| ROE | 19.1% | 17.9% |
| ROA | 4.4% | 3.8% |
| ROIC | 12.1% | 11.6% |
Leverage & liquidity
| Metric | FY 2025 | FY 2024 |
|---|---|---|
| Debt / equity | — | — |
| Net debt / EBITDA | 0.96 | 1.02 |
| Interest coverage | — | — |
| Current ratio | 0.55x | 1.26x |
| Quick ratio | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).