Progressive Corporation provides insurance for personal and commercial autos and trucks, motorcycles, boats, recreational vehicles, and homes. The company was founded in 1937 and is based in Mayfield Village, Ohio.
PGR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Progressive Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Progressive Corp ranked in the 72th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Progressive Corp ended up being:
The company has produced more trailing twelve month cash flow than 94.41% of its sector Financial Services.
The business' balance sheet reveals debt to be 9% of the company's capital (with equity being the remaining amount). Approximately only 19.22% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
PGR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 49.55% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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