State Auto Financial Corporation (STFC) Company Bio
State Auto Financial Corporation engages in writing personal, business, and specialty insurance products. It operates through four segments: Personal insurance, Business insurance, Specialty insurance, and Investment operations. The company was founded in 1950 and is based in Columbus, Ohio.
STFC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for State Auto Financial CORP. To summarize, we found that State Auto Financial CORP ranked in the 6th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 97%. In terms of the factors that were most noteworthy in this DCF analysis for STFC, they are:
The compound growth rate in the free cash flow of State Auto Financial CORP over the past 5.51 years is -0.27%; that's higher than only 3.85% of free cash flow generating stocks in the Financial Services sector.
State Auto Financial CORP's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -8.85. This coverage rate is greater than that of merely 8.88% of stocks we're observing for the purpose of forecasting via discounted cash flows.
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 State Auto Financial CORP? See EZPW, WETF, FSK, ASPS, and RILY.
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