TRV PE Ratio & Valuation,Is TRV Overvalued

TRV Relative Valuation

TRV's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TRV is overvalued; if below, it's undervalued.

Historical Valuation

Travelers Companies Inc (TRV) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.70 is considered Undervalued compared with the five-year average of 12.41. The fair price of Travelers Companies Inc (TRV) is between 333.12 to 399.90 according to relative valuation methord. Compared to the current price of 286.96 USD , Travelers Companies Inc is Undervalued By 13.86%.

Relative Value

Fair Zone

333.12-399.90

Current Price：286.96

13.86%

Undervalued

10.70

0.00

EV/EBITDA

Travelers Companies Inc. (TRV) has a current EV/EBITDA of 0.00. The 5-year average EV/EBITDA is 3.67. The thresholds are as follows: Strongly Undervalued below -5.47, Undervalued between -5.47 and -0.90, Fairly Valued between 8.23 and -0.90, Overvalued between 8.23 and 12.80, and Strongly Overvalued above 12.80. The current Forward EV/EBITDA of 0.00 falls within the Historic Trend Line -Fairly Valued range.

8.68

EV/EBIT

Travelers Companies Inc. (TRV) has a current EV/EBIT of 8.68. The 5-year average EV/EBIT is 10.65. The thresholds are as follows: Strongly Undervalued below 7.56, Undervalued between 7.56 and 9.11, Fairly Valued between 12.20 and 9.11, Overvalued between 12.20 and 13.75, and Strongly Overvalued above 13.75. The current Forward EV/EBIT of 8.68 falls within the Undervalued range.

1.41

Travelers Companies Inc. (TRV) has a current PS of 1.41. The 5-year average PS is 1.18. The thresholds are as follows: Strongly Undervalued below 0.95, Undervalued between 0.95 and 1.07, Fairly Valued between 1.30 and 1.07, Overvalued between 1.30 and 1.42, and Strongly Overvalued above 1.42. The current Forward PS of 1.41 falls within the Overvalued range.

6.42

P/OCF

Travelers Companies Inc. (TRV) has a current P/OCF of 6.42. The 5-year average P/OCF is 9.17. The thresholds are as follows: Strongly Undervalued below 3.51, Undervalued between 3.51 and 6.34, Fairly Valued between 12.00 and 6.34, Overvalued between 12.00 and 14.83, and Strongly Overvalued above 14.83. The current Forward P/OCF of 6.42 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/FCF

Travelers Companies Inc. (TRV) has a current P/FCF of 0.00. The 5-year average P/FCF is 5.38. The thresholds are as follows: Strongly Undervalued below -9.59, Undervalued between -9.59 and -2.10, Fairly Valued between 12.87 and -2.10, Overvalued between 12.87 and 20.35, and Strongly Overvalued above 20.35. The current Forward P/FCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

Travelers Companies Inc (TRV) has a current Price-to-Book (P/B) ratio of 2.01. Compared to its 3-year average P/B ratio of 1.97 , the current P/B ratio is approximately 2.16% higher. Relative to its 5-year average P/B ratio of 1.78, the current P/B ratio is about 12.91% higher. Travelers Companies Inc (TRV) has a Forward Free Cash Flow (FCF) yield of approximately 15.69%. Compared to its 3-year average FCF yield of 16.09%, the current FCF yield is approximately -2.50% lower. Relative to its 5-year average FCF yield of 16.84% , the current FCF yield is about -6.84% lower.

2.01

P/B

Median3y

1.97

Median5y

1.78

15.69

FCF Yield

Median3y

16.09

Median5y

16.84

Competitors Valuation Multiple

The average P/S ratio for TRV's competitors is 1.48, providing a benchmark for relative valuation. Travelers Companies Inc Corp (TRV) exhibits a P/S ratio of 1.41, which is -4.16% above the industry average. Given its robust revenue growth of 4.71%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TRV increased by 18.44% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 10.58 to 15.14.

The secondary factor is the Revenue Growth, contributed 4.71%to the performance.

Overall, the performance of TRV in the past 1 year is driven by Margin Expansion. Which is more sustainable.

4.71%

11.91B → 12.47B

Revenue Growth

43.10%

10.58 → 15.14

Margin Expansion

-29.37%

15.87 → 11.21

P/E Change

18.44%

240.89 → 285.31

Mkt Cap Growth

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Frequently Asked Questions

Is Travelers Companies Inc (TRV) currently overvalued or undervalued?

What is Travelers Companies Inc (TRV) fair value?

TRV's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Travelers Companies Inc (TRV) is between 333.12 to 399.90 according to relative valuation methord.

How does TRV's valuation metrics compare to the industry average?

What is the current P/B ratio for Travelers Companies Inc (TRV) as of Dec 15 2025?

As of Dec 15 2025, Travelers Companies Inc (TRV) has a P/B ratio of 2.01. This indicates that the market values TRV at 2.01 times its book value.

What is the current FCF Yield for Travelers Companies Inc (TRV) as of Dec 15 2025?

As of Dec 15 2025, Travelers Companies Inc (TRV) has a FCF Yield of 15.69%. This means that for every dollar of Travelers Companies Inc’s market capitalization, the company generates 15.69 cents in free cash flow.

What is the current Forward P/E ratio for Travelers Companies Inc (TRV) as of Dec 15 2025?

As of Dec 15 2025, Travelers Companies Inc (TRV) has a Forward P/E ratio of 10.70. This means the market is willing to pay $10.70 for every dollar of Travelers Companies Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Travelers Companies Inc (TRV) as of Dec 15 2025?

As of Dec 15 2025, Travelers Companies Inc (TRV) has a Forward P/S ratio of 1.41. This means the market is valuing TRV at $1.41 for every dollar of expected revenue over the next 12 months.

TRV Valuation