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 58th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 63.17%. In terms of the factors that were most noteworthy in this DCF analysis for CNA, they are:
Interest coverage, a measure of earnings relative to interest payments, is 6.42; that's higher than 58.65% of US stocks in the Financial Services sector that have positive free cash flow.
Cna Financial Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 15.9% of tickers in our DCF set.
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 AINV, UIHC, IVZ, HNNA, and TSLX.
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Phillip Martinelli on Seeking Alpha | August 11, 2020