Intrinsic value of CNA Financial - CNA

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$45.55

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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$45.55

 
Intrinsic value

$66.34

 
Up/down potential

+46%

 
Rating

buy

 
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Our model is not good at valuating stocks of financial companies, such as CNA.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of CNA stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 12.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.05
  3.80
  3.92
  4.03
  4.13
  4.21
  4.29
  4.36
  4.43
  4.48
  4.54
  4.58
  4.62
  4.66
  4.69
  4.73
  4.75
  4.78
  4.80
  4.82
  4.84
  4.85
  4.87
  4.88
  4.89
  4.90
  4.91
  4.92
  4.93
  4.94
  4.94
Revenue, $m
  0
  9,806
  10,190
  10,601
  11,038
  11,503
  11,997
  12,520
  13,074
  13,660
  14,280
  14,934
  15,625
  16,353
  17,121
  17,930
  18,782
  19,679
  20,624
  21,618
  22,664
  23,764
  24,921
  26,138
  27,417
  28,761
  30,174
  31,660
  33,221
  34,861
  36,584
Variable operating expenses, $m
 
  9,060
  9,415
  9,793
  10,197
  10,626
  11,081
  11,564
  12,075
  12,616
  13,187
  13,776
  14,413
  15,085
  15,793
  16,540
  17,326
  18,153
  19,025
  19,942
  20,907
  21,921
  22,989
  24,111
  25,291
  26,531
  27,835
  29,205
  30,645
  32,158
  33,748
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  8,151
  9,060
  9,415
  9,793
  10,197
  10,626
  11,081
  11,564
  12,075
  12,616
  13,187
  13,776
  14,413
  15,085
  15,793
  16,540
  17,326
  18,153
  19,025
  19,942
  20,907
  21,921
  22,989
  24,111
  25,291
  26,531
  27,835
  29,205
  30,645
  32,158
  33,748
Operating income, $m
  1,296
  746
  776
  807
  841
  877
  916
  956
  999
  1,045
  1,093
  1,158
  1,211
  1,268
  1,327
  1,390
  1,456
  1,526
  1,599
  1,676
  1,757
  1,843
  1,932
  2,027
  2,126
  2,230
  2,340
  2,455
  2,576
  2,703
  2,837
EBITDA, $m
  1,373
  817
  849
  883
  919
  958
  999
  1,043
  1,089
  1,138
  1,189
  1,244
  1,301
  1,362
  1,426
  1,493
  1,564
  1,639
  1,718
  1,801
  1,888
  1,979
  2,076
  2,177
  2,284
  2,396
  2,513
  2,637
  2,767
  2,904
  3,047
Interest expense (income), $m
  157
  163
  261
  366
  479
  599
  727
  863
  1,007
  1,159
  1,320
  1,490
  1,670
  1,859
  2,060
  2,270
  2,493
  2,727
  2,973
  3,233
  3,506
  3,793
  4,096
  4,413
  4,748
  5,099
  5,469
  5,857
  6,265
  6,694
  7,144
Earnings before tax, $m
  1,137
  583
  515
  441
  362
  278
  189
  94
  -7
  -114
  -227
  -332
  -458
  -592
  -732
  -880
  -1,036
  -1,201
  -1,374
  -1,557
  -1,749
  -1,951
  -2,163
  -2,387
  -2,622
  -2,869
  -3,129
  -3,402
  -3,689
  -3,991
  -4,308
Tax expense, $m
  278
  157
  139
  119
  98
  75
  51
  25
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  859
  426
  376
  322
  264
  203
  138
  68
  -7
  -114
  -227
  -332
  -458
  -592
  -732
  -880
  -1,036
  -1,201
  -1,374
  -1,557
  -1,749
  -1,951
  -2,163
  -2,387
  -2,622
  -2,869
  -3,129
  -3,402
  -3,689
  -3,991
  -4,308

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  55,233
  57,345
  59,593
  61,993
  64,551
  67,270
  70,157
  73,217
  76,458
  79,886
  83,509
  87,335
  91,373
  95,631
  100,121
  104,853
  109,836
  115,084
  120,608
  126,421
  132,537
  138,970
  145,736
  152,851
  160,331
  168,194
  176,459
  185,145
  194,273
  203,865
  213,943
Adjusted assets (=assets-cash), $m
  55,233
  57,345
  59,593
  61,993
  64,551
  67,270
  70,157
  73,217
  76,458
  79,886
  83,509
  87,335
  91,373
  95,631
  100,121
  104,853
  109,836
  115,084
  120,608
  126,421
  132,537
  138,970
  145,736
  152,851
  160,331
  168,194
  176,459
  185,145
  194,273
  203,865
  213,943
Revenue / Adjusted assets
  0.000
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
  0.171
Average production assets, $m
  361
  373
  387
  403
  419
  437
  456
  476
  497
  519
  543
  568
  594
  621
  651
  681
  714
  748
  784
  821
  861
  903
  947
  993
  1,042
  1,093
  1,147
  1,203
  1,262
  1,325
  1,390
Working capital, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total debt, $m
  2,710
  4,347
  6,107
  7,987
  9,989
  12,118
  14,379
  16,775
  19,312
  21,997
  24,833
  27,829
  30,991
  34,325
  37,841
  41,546
  45,448
  49,557
  53,882
  58,433
  63,222
  68,260
  73,558
  79,128
  84,985
  91,142
  97,613
  104,414
  111,562
  119,072
  126,963
Total liabilities, $m
  43,264
  44,901
  46,661
  48,541
  50,543
  52,672
  54,933
  57,329
  59,866
  62,551
  65,387
  68,383
  71,545
  74,879
  78,395
  82,100
  86,002
  90,111
  94,436
  98,987
  103,776
  108,814
  114,112
  119,682
  125,539
  131,696
  138,167
  144,968
  152,116
  159,626
  167,517
Total equity, $m
  11,969
  12,444
  12,932
  13,453
  14,007
  14,598
  15,224
  15,888
  16,591
  17,335
  18,121
  18,952
  19,828
  20,752
  21,726
  22,753
  23,834
  24,973
  26,172
  27,433
  28,760
  30,157
  31,625
  33,169
  34,792
  36,498
  38,292
  40,176
  42,157
  44,239
  46,426
Total liabilities and equity, $m
  55,233
  57,345
  59,593
  61,994
  64,550
  67,270
  70,157
  73,217
  76,457
  79,886
  83,508
  87,335
  91,373
  95,631
  100,121
  104,853
  109,836
  115,084
  120,608
  126,420
  132,536
  138,971
  145,737
  152,851
  160,331
  168,194
  176,459
  185,144
  194,273
  203,865
  213,943
Debt-to-equity ratio
  0.226
  0.350
  0.470
  0.590
  0.710
  0.830
  0.940
  1.060
  1.160
  1.270
  1.370
  1.470
  1.560
  1.650
  1.740
  1.830
  1.910
  1.980
  2.060
  2.130
  2.200
  2.260
  2.330
  2.390
  2.440
  2.500
  2.550
  2.600
  2.650
  2.690
  2.730
Adjusted equity ratio
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217
  0.217

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  859
  426
  376
  322
  264
  203
  138
  68
  -7
  -114
  -227
  -332
  -458
  -592
  -732
  -880
  -1,036
  -1,201
  -1,374
  -1,557
  -1,749
  -1,951
  -2,163
  -2,387
  -2,622
  -2,869
  -3,129
  -3,402
  -3,689
  -3,991
  -4,308
Depreciation, amort., depletion, $m
  77
  71
  73
  76
  78
  81
  84
  87
  90
  93
  97
  86
  90
  94
  99
  103
  108
  113
  119
  124
  130
  137
  143
  150
  158
  166
  174
  182
  191
  201
  211
Funds from operations, $m
  1,558
  497
  449
  397
  342
  284
  221
  155
  82
  -21
  -130
  -246
  -368
  -497
  -633
  -777
  -928
  -1,088
  -1,256
  -1,432
  -1,618
  -1,814
  -2,020
  -2,236
  -2,464
  -2,704
  -2,955
  -3,220
  -3,498
  -3,790
  -4,097
Change in working capital, $m
  142
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from operations, $m
  1,416
  515
  449
  397
  342
  284
  221
  155
  82
  -21
  -130
  -246
  -368
  -497
  -633
  -777
  -928
  -1,088
  -1,256
  -1,432
  -1,618
  -1,814
  -2,020
  -2,236
  -2,464
  -2,704
  -2,955
  -3,220
  -3,498
  -3,790
  -4,097
Maintenance CAPEX, $m
  0
  -55
  -56
  -59
  -61
  -64
  -66
  -69
  -72
  -75
  -79
  -82
  -86
  -90
  -94
  -99
  -103
  -108
  -113
  -119
  -124
  -130
  -137
  -143
  -150
  -158
  -166
  -174
  -182
  -191
  -201
New CAPEX, $m
  -146
  -12
  -15
  -16
  -17
  -18
  -19
  -20
  -21
  -22
  -24
  -25
  -26
  -28
  -29
  -31
  -32
  -34
  -36
  -38
  -40
  -42
  -44
  -46
  -49
  -51
  -54
  -56
  -59
  -62
  -65
Cash from investing activities, $m
  -846
  -67
  -71
  -75
  -78
  -82
  -85
  -89
  -93
  -97
  -103
  -107
  -112
  -118
  -123
  -130
  -135
  -142
  -149
  -157
  -164
  -172
  -181
  -189
  -199
  -209
  -220
  -230
  -241
  -253
  -266
Free cash flow, $m
  570
  448
  378
  323
  265
  202
  136
  66
  -11
  -118
  -233
  -353
  -481
  -615
  -757
  -906
  -1,064
  -1,230
  -1,405
  -1,589
  -1,782
  -1,986
  -2,201
  -2,426
  -2,663
  -2,912
  -3,175
  -3,450
  -3,739
  -4,044
  -4,363
Issuance/(repayment) of debt, $m
  140
  1,637
  1,760
  1,880
  2,002
  2,129
  2,260
  2,396
  2,537
  2,684
  2,837
  2,996
  3,162
  3,335
  3,516
  3,705
  3,902
  4,109
  4,325
  4,552
  4,789
  5,037
  5,298
  5,571
  5,857
  6,157
  6,471
  6,801
  7,147
  7,510
  7,891
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  140
  1,637
  1,760
  1,880
  2,002
  2,129
  2,260
  2,396
  2,537
  2,684
  2,837
  2,996
  3,162
  3,335
  3,516
  3,705
  3,902
  4,109
  4,325
  4,552
  4,789
  5,037
  5,298
  5,571
  5,857
  6,157
  6,471
  6,801
  7,147
  7,510
  7,891
Total cash flow (excl. dividends), $m
  697
  2,085
  2,138
  2,203
  2,267
  2,332
  2,397
  2,462
  2,527
  2,566
  2,604
  2,643
  2,681
  2,720
  2,759
  2,798
  2,838
  2,879
  2,920
  2,963
  3,006
  3,051
  3,097
  3,145
  3,194
  3,244
  3,297
  3,351
  3,408
  3,467
  3,528
Retained Cash Flow (-), $m
  -213
  -475
  -488
  -521
  -555
  -590
  -626
  -664
  -703
  -744
  -786
  -830
  -876
  -924
  -974
  -1,027
  -1,081
  -1,139
  -1,199
  -1,261
  -1,327
  -1,396
  -1,468
  -1,544
  -1,623
  -1,706
  -1,793
  -1,885
  -1,981
  -2,081
  -2,187
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,611
  1,650
  1,682
  1,712
  1,742
  1,770
  1,798
  1,824
  1,822
  1,818
  1,812
  1,805
  1,796
  1,784
  1,772
  1,757
  1,740
  1,722
  1,701
  1,679
  1,655
  1,629
  1,601
  1,570
  1,538
  1,503
  1,466
  1,427
  1,385
  1,341
Discount rate, %
 
  4.60
  4.83
  5.07
  5.33
  5.59
  5.87
  6.16
  6.47
  6.80
  7.14
  7.49
  7.87
  8.26
  8.67
  9.11
  9.56
  10.04
  10.54
  11.07
  11.62
  12.21
  12.82
  13.46
  14.13
  14.84
  15.58
  16.36
  17.17
  18.03
  18.93
PV of cash for distribution, $m
 
  1,540
  1,502
  1,450
  1,391
  1,327
  1,257
  1,183
  1,104
  1,008
  912
  819
  727
  640
  557
  479
  407
  342
  283
  231
  186
  147
  115
  88
  66
  48
  35
  25
  17
  11
  7
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

CNA Financial Corporation provides commercial property and casualty insurance products primarily in the United States. It operates through Specialty, Commercial, International, Life & Group Non-Core, and Corporate & Other Non-Core segments. The company’s property insurance products include property, marine, boiler, and machinery coverages; and casualty insurance products comprise workers compensation, general and product liability, commercial auto, and umbrella coverages. It also offers management and professional liability insurance and risk management services, and other specialized property and casualty coverages to various professional firms, including architects, real estate agents, and accounting and law firms; surety and fidelity bonds, and warranty and alternative risks products; directors and officers, employment practices, fiduciary and fidelity coverages to small and mid-size firms, public and private firms, and not-for-profit organizations; and professional and general liability, as well as associated standard property and casualty coverages for healthcare industry. In addition, the company underwrites long-tail exposures, including commercial automobile liability, workers' compensation, general and medical professional liability, other professional and management liability, and assumed reinsurance run-off and products liability; short-tail exposures include property, commercial automobile physical damage, marine, surety, and warranty. CNA Financial Corporation markets its products through independent agents, brokers, and general underwriters to customers, including small, medium, and large businesses; insurance companies; associations; professionals; and other groups. It serves marine, property, financial services, healthcare, technology, oil and gas, construction, manufacturing, and life science industries. The company was founded in 1853 and is based in Chicago, Illinois. CNA Financial Corporation operates as a subsidiary of Loews Corporation.

FINANCIAL RATIOS  of  CNA Financial (CNA)

Valuation Ratios
P/E Ratio 14.3
Price to Sales 1.3
Price to Book 1
Price to Tangible Book
Price to Cash Flow 8.7
Price to Free Cash Flow 9.7
Growth Rates
Sales Growth Rate 2.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 16.8%
Cap. Spend. - 3 Yr. Gr. Rate 9.9%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 22.6%
Total Debt to Equity 22.6%
Interest Coverage 8
Management Effectiveness
Return On Assets 1.8%
Ret/ On Assets - 3 Yr. Avg. 1.4%
Return On Total Capital 5.9%
Ret/ On T. Cap. - 3 Yr. Avg. 4.6%
Return On Equity 7.2%
Return On Equity - 3 Yr. Avg. 5.5%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 14.5%
EBITDA Margin - 3 Yr. Avg. 12.7%
Operating Margin 13.7%
Oper. Margin - 3 Yr. Avg. 11.9%
Pre-Tax Margin 12%
Pre-Tax Margin - 3 Yr. Avg. 10.1%
Net Profit Margin 9.1%
Net Profit Margin - 3 Yr. Avg. 7.1%
Effective Tax Rate 24.5%
Eff/ Tax Rate - 3 Yr. Avg. 21.2%
Payout Ratio 94.6%

CNA stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CNA stock intrinsic value calculation we used $9447 million for the last fiscal year's total revenue generated by CNA Financial. The default revenue input number comes from 2016 income statement of CNA Financial. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CNA stock valuation model: a) initial revenue growth rate of 3.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.6%, whose default value for CNA is calculated based on our internal credit rating of CNA Financial, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of CNA Financial.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CNA stock the variable cost ratio is equal to 92.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for CNA stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 6% for CNA Financial.

Corporate tax rate of 27% is the nominal tax rate for CNA Financial. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CNA stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CNA are equal to 3.8%.

Life of production assets of 6.6 years is the average useful life of capital assets used in CNA Financial operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CNA is equal to 0%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $11969 million for CNA Financial - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 270.093 million for CNA Financial is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of CNA Financial at the current share price and the inputted number of shares is $12.3 billion.


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COMPANY NEWS

▶ Company News for May 02, 2017   [May-02-17 10:33AM  Zacks]
▶ CNA Financial beats 1Q profit forecasts   [06:16AM  Associated Press]
▶ CNA Announces New Member to Board of Directors   [Apr-27-17 04:50PM  PR Newswire]
▶ Plymouth Tube Receives The 2017 Rusty Demeules Award   [Apr-26-17 10:00AM  PR Newswire]
▶ How Law Firms Can Implement a Cyber Security Program   [Apr-19-17 08:00AM  PR Newswire]
▶ CNA Announces New Aging Services Policy Forms   [Apr-17-17 09:00AM  PR Newswire]
▶ Loews to Buy Consolidated Container for $1.2 Bln   [Apr-11-17 01:32PM  Investopedia]
▶ There's No LOL In Distracted Driving   [Mar-30-17 03:30PM  PR Newswire]
▶ CNA Announces Aclaimant As New Allied Vendor   [Mar-16-17 09:00AM  PR Newswire]
▶ The Future of Construction, Brought to You by Drones   [Mar-13-17 09:00AM  PR Newswire]
▶ CNA Named Premier Sponsor of Worldwide Broker Network   [Mar-09-17 08:00AM  PR Newswire]
▶ CNA Announces Joyce Trimuel As Chief Diversity Officer   [Mar-06-17 09:00AM  PR Newswire]
▶ Bitcoin: Universal Currency or Trojan Horse?   [Feb-28-17 08:00AM  PR Newswire]
▶ CNA Celebrates Insurance Careers Month   [Feb-01-17 09:00AM  PR Newswire]
▶ [$$] Brickley's Take: Libby Claimants Question Reach of Bankruptcy Injunction   [Jan-18-17 11:23AM  at The Wall Street Journal]
▶ Joe Cranny Appointed Vice President, Minneapolis Branch   [Jan-03-17 08:00AM  PR Newswire]
Stock chart of CNA Financial statements of CNA Annual reports of CNA
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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