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The Travelers (NYSE:TRV) GF Value Rank

: 5 (As of Today)
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The Travelers has the GF Value Rank of 5.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Insurance - Property & Casualty subindustry, The Travelers's GF Value Rank, along with its competitors' market caps and GF Value Rank data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

The Travelers GF Value Rank Distribution

For the Insurance industry and Financial Services sector, The Travelers's GF Value Rank distribution charts can be found below:

* The bar in red indicates where The Travelers's GF Value Rank falls in comparison to its industry or sector. The grey bar indicates the GF Value Rank's extreme value range as defined by GuruFocus.



The Travelers GF Value Rank Related Terms

Thank you for viewing the detailed overview of The Travelers's GF Value Rank provided by GuruFocus.com. Please click on the following links to see related term pages.


The Travelers (NYSE:TRV) Business Description

The Travelers logo
Address
485 Lexington Avenue, New York, NY, USA, 10017
Travelers offers a broad product range and participates in both commercial and personal insurance lines. Its commercial operations offer a variety of coverage types for companies of any size but concentrate on serving midsize businesses. Its personal lines are roughly evenly split between auto and homeowners insurance. Policies are distributed via a network of more than 11,000 brokers and independent agents.
Executives
Santana Rafael director C/O TRANSPORTATION SYSTEMS HOLDINGS INC. 901 MAIN AVENUE NORWALK CT 06851
Van Kralingen Bridget A director IBM CORPORATION ONE NEW ORCHARD RD ARMONK NY 10504-1722
Klenk Jeffrey P. officer: EVP & Pres., Bond & Spec. Ins. 385 WASHINGTON STREET ST. PAUL MN 55102
Rowland David Donnay officer: EVP & Co-Chief Invest. Officer 385 WASHINGTON STREET ST. PAUL MN 55102
Leonardi Thomas B director 175 WATER STREET NEW YORK NY 10038
Yin Daniel Tei-hwa officer: EVP & Co-Chief Invest. Officer 385 WASHINGTON STREET ST. PAUL MN 55102
Kurtzman Diane officer: EVP & Chief HR Officer 385 WASHINGTON STREET ST. PAUL MN 55102
Robinson Elizabeth director 79 LAIGHT STREET, APT. 4A NEW YORK NY 10019
Lefebvre Mojgan M officer: Chief Information Officer 385 WASHINGTON STREET ST. PAUL MN 55102
Frey Daniel S. officer: Chief Financial Officer 385 WASHINGTON STREET ST. PAUL MN 55102
Bengston Diane D. officer: EVP & Chief HR Officer 385 WASHINGTON STREET ST. PAUL MN 55102
Kunkel Thomas M officer: EVP & Pres., Bond & Spec. Ins. 385 WASHINGTON STREET ST. PAUL MN 55102
Klein Michael Frederick officer: EVP & President, Personal Ins. 385 WASHINGTON STREET ST. PAUL MN 55102
Kess Avrohom J. officer: Vice Chmn & Chief Legal Off 385 WASHINGTON STREET ST. PAUL MN 55102
Toczydlowski Gregory C officer: EVP & President, Business Ins. 385 WASHINGTON STREET ST. PAUL MN 55102

The Travelers (NYSE:TRV) Headlines

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