Loews Corporation operates as a commercial property and casualty insurance company primarily in the United States. The company offers management and professional liability insurance and risk management services, and other specialized property and casualty coverages. The company was founded in 1954 and is based in New York, New York.
L Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Loews Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Loews Corp ranked in the 27th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for L, they are:
Its compound free cash flow growth rate, as measured over the past 5.53 years, is -0.07% -- higher than only 19.59% of stocks in our DCF forecasting set.
Loews Corp's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 8.68% of tickers in our DCF set.
Relative to other stocks in its sector (Financial Services), Loews Corp has a reliance on debt greater than 72.8% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MCO, PRAA, WLTW, FDS, and HMN can be thought of as valuation peers to L, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.