CNA Financial provides commercial property and casualty insurance products primarily in the United States. It operates through Specialty, Commercial, International, Life & Group Non-Core, and Corporate & Other Non-Core segments. The company was founded in 1853 and is based in Chicago, Illinois
CNA Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Cna Financial Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Cna Financial Corp ranked in the 48th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Cna Financial Corp, consider:
CNA's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than 26.7% of tickers in our DCF set.
The weighted average cost of capital for the company is 8. This value is greater than merely 23.01% stocks in the Financial Services sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CNA, try HMN, MN, AMG, PRA, and RILY.