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:
Below please find a table outlining a discounted cash flow forecast for STFC, in which we model out valuation assuming a variety of terminal growth rates. 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%. The most interesting components of our discounted cash flow analysis for State Auto Financial CORP ended up being:
Its compound free cash flow growth rate, as measured over the past 5.51 years, is -0.27% -- higher than merely 5.97% of stocks in our DCF forecasting set.
As a business, STFC is generating more cash flow than just 15.48% of positive cash flow stocks in the Financial Services.
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 only 8.82% 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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