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 71th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 167.17%. 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 94.59% of its sector Financial Services.
The business' balance sheet suggests that 9% of the company's capital is sourced from debt; this is greater than just 24.35% of the free cash flow producing stocks we're observing.
PGR'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 36.23% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Progressive Corp? See TCPC, PSEC, MMAC, PFX, and TREE.
Andrew Left Citron Research’s Andrew Left criticized insurance company Lemonade Inc (NYSE: LMND ) on Friday, saying its stock multiple is based on empty marketing tactics. The Lemonade Bear Case: In a Twitter live video , Left dismissed Lemonade Inc 's claims of bringing new technology to the insurance industry, saying the company's technology is no different from insurers like Progressive Corp. (NYSE: PGR ) or State Farm. "They've been lying to their customers and their shareholders," said the noted short … Full story available on Benzinga.com
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