Intrinsic value of Chubb - CB

Previous Close

$150.50

  Intrinsic Value

$189.87

stock screener

  Rating & Target

buy

+26%

Previous close

$150.50

 
Intrinsic value

$189.87

 
Up/down potential

+26%

 
Rating

buy

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

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

We calculate the intrinsic value of CB 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 70.0

 

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, %
  65.31
  2.60
  2.84
  3.06
  3.25
  3.43
  3.58
  3.72
  3.85
  3.97
  4.07
  4.16
  4.25
  4.32
  4.39
  4.45
  4.51
  4.56
  4.60
  4.64
  4.68
  4.71
  4.74
  4.76
  4.79
  4.81
  4.83
  4.84
  4.86
  4.87
  4.89
Revenue, $m
  0
  32,393
  33,313
  34,331
  35,447
  36,661
  37,974
  39,389
  40,906
  42,529
  44,260
  46,102
  48,060
  50,138
  52,339
  54,668
  57,131
  59,734
  62,482
  65,381
  68,438
  71,660
  75,055
  78,630
  82,394
  86,356
  90,525
  94,911
  99,524
  104,375
  109,476
Variable operating expenses, $m
 
  26,393
  27,099
  27,880
  28,736
  29,668
  30,676
  31,762
  32,926
  34,171
  35,500
  35,381
  36,883
  38,477
  40,167
  41,954
  43,845
  45,842
  47,951
  50,175
  52,522
  54,994
  57,600
  60,344
  63,232
  66,273
  69,472
  72,838
  76,379
  80,102
  84,016
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
  26,260
  26,393
  27,099
  27,880
  28,736
  29,668
  30,676
  31,762
  32,926
  34,171
  35,500
  35,381
  36,883
  38,477
  40,167
  41,954
  43,845
  45,842
  47,951
  50,175
  52,522
  54,994
  57,600
  60,344
  63,232
  66,273
  69,472
  72,838
  76,379
  80,102
  84,016
Operating income, $m
  5,312
  6,000
  6,214
  6,451
  6,710
  6,993
  7,298
  7,627
  7,980
  8,357
  8,760
  10,722
  11,177
  11,660
  12,172
  12,714
  13,287
  13,892
  14,531
  15,205
  15,916
  16,665
  17,455
  18,286
  19,162
  20,083
  21,053
  22,073
  23,146
  24,274
  25,460
EBITDA, $m
  5,312
  7,925
  8,150
  8,399
  8,672
  8,970
  9,291
  9,637
  10,008
  10,405
  10,829
  11,280
  11,759
  12,267
  12,805
  13,375
  13,978
  14,615
  15,287
  15,996
  16,744
  17,532
  18,363
  19,238
  20,159
  21,128
  22,148
  23,221
  24,350
  25,537
  26,785
Interest expense (income), $m
  642
  751
  902
  1,083
  1,284
  1,504
  1,744
  2,003
  2,283
  2,582
  2,903
  3,244
  3,608
  3,995
  4,405
  4,839
  5,299
  5,785
  6,299
  6,842
  7,414
  8,017
  8,653
  9,324
  10,029
  10,773
  11,555
  12,378
  13,244
  14,154
  15,112
Earnings before tax, $m
  4,950
  5,249
  5,312
  5,368
  5,426
  5,488
  5,554
  5,624
  5,697
  5,775
  5,857
  7,477
  7,569
  7,666
  7,767
  7,875
  7,988
  8,106
  8,232
  8,363
  8,502
  8,648
  8,801
  8,963
  9,132
  9,311
  9,498
  9,695
  9,902
  10,119
  10,348
Tax expense, $m
  815
  1,417
  1,434
  1,449
  1,465
  1,482
  1,500
  1,518
  1,538
  1,559
  1,581
  2,019
  2,044
  2,070
  2,097
  2,126
  2,157
  2,189
  2,223
  2,258
  2,296
  2,335
  2,376
  2,420
  2,466
  2,514
  2,564
  2,618
  2,674
  2,732
  2,794
Net income, $m
  4,135
  3,832
  3,878
  3,918
  3,961
  4,006
  4,054
  4,105
  4,159
  4,216
  4,276
  5,458
  5,525
  5,596
  5,670
  5,748
  5,831
  5,918
  6,009
  6,105
  6,207
  6,313
  6,425
  6,543
  6,667
  6,797
  6,934
  7,077
  7,228
  7,387
  7,554

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
  159,786
  163,600
  168,247
  173,388
  179,024
  185,156
  191,790
  198,933
  206,596
  214,792
  223,534
  232,840
  242,729
  253,220
  264,336
  276,102
  288,543
  301,686
  315,563
  330,205
  345,644
  361,918
  379,063
  397,121
  416,132
  436,142
  457,198
  479,349
  502,647
  527,148
  552,910
Adjusted assets (=assets-cash), $m
  159,786
  163,600
  168,247
  173,388
  179,024
  185,156
  191,790
  198,933
  206,596
  214,792
  223,534
  232,840
  242,729
  253,220
  264,336
  276,102
  288,543
  301,686
  315,563
  330,205
  345,644
  361,918
  379,063
  397,121
  416,132
  436,142
  457,198
  479,349
  502,647
  527,148
  552,910
Revenue / Adjusted assets
  0.000
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
  0.198
Average production assets, $m
  3,825
  3,920
  4,031
  4,154
  4,289
  4,436
  4,595
  4,766
  4,950
  5,146
  5,355
  5,578
  5,815
  6,067
  6,333
  6,615
  6,913
  7,228
  7,560
  7,911
  8,281
  8,671
  9,082
  9,514
  9,970
  10,449
  10,954
  11,484
  12,042
  12,629
  13,247
Working capital, $m
  0
  518
  533
  549
  567
  587
  608
  630
  654
  680
  708
  738
  769
  802
  837
  875
  914
  956
  1,000
  1,046
  1,095
  1,147
  1,201
  1,258
  1,318
  1,382
  1,448
  1,519
  1,592
  1,670
  1,752
Total debt, $m
  13,418
  16,100
  19,343
  22,932
  26,866
  31,146
  35,776
  40,763
  46,111
  51,832
  57,934
  64,430
  71,332
  78,655
  86,414
  94,626
  103,310
  112,484
  122,170
  132,390
  143,167
  154,526
  166,493
  179,097
  192,367
  206,334
  221,031
  236,492
  252,755
  269,856
  287,838
Total liabilities, $m
  111,511
  114,193
  117,436
  121,025
  124,959
  129,239
  133,869
  138,856
  144,204
  149,925
  156,027
  162,523
  169,425
  176,748
  184,507
  192,719
  201,403
  210,577
  220,263
  230,483
  241,260
  252,619
  264,586
  277,190
  290,460
  304,427
  319,124
  334,585
  350,848
  367,949
  385,931
Total equity, $m
  48,275
  49,407
  50,810
  52,363
  54,065
  55,917
  57,921
  60,078
  62,392
  64,867
  67,507
  70,318
  73,304
  76,472
  79,830
  83,383
  87,140
  91,109
  95,300
  99,722
  104,385
  109,299
  114,477
  119,930
  125,672
  131,715
  138,074
  144,763
  151,799
  159,199
  166,979
Total liabilities and equity, $m
  159,786
  163,600
  168,246
  173,388
  179,024
  185,156
  191,790
  198,934
  206,596
  214,792
  223,534
  232,841
  242,729
  253,220
  264,337
  276,102
  288,543
  301,686
  315,563
  330,205
  345,645
  361,918
  379,063
  397,120
  416,132
  436,142
  457,198
  479,348
  502,647
  527,148
  552,910
Debt-to-equity ratio
  0.278
  0.330
  0.380
  0.440
  0.500
  0.560
  0.620
  0.680
  0.740
  0.800
  0.860
  0.920
  0.970
  1.030
  1.080
  1.130
  1.190
  1.230
  1.280
  1.330
  1.370
  1.410
  1.450
  1.490
  1.530
  1.570
  1.600
  1.630
  1.670
  1.700
  1.720
Adjusted equity ratio
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302
  0.302

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  4,135
  3,832
  3,878
  3,918
  3,961
  4,006
  4,054
  4,105
  4,159
  4,216
  4,276
  5,458
  5,525
  5,596
  5,670
  5,748
  5,831
  5,918
  6,009
  6,105
  6,207
  6,313
  6,425
  6,543
  6,667
  6,797
  6,934
  7,077
  7,228
  7,387
  7,554
Depreciation, amort., depletion, $m
  0
  1,925
  1,936
  1,949
  1,962
  1,977
  1,993
  2,010
  2,028
  2,048
  2,069
  558
  582
  607
  633
  661
  691
  723
  756
  791
  828
  867
  908
  951
  997
  1,045
  1,095
  1,148
  1,204
  1,263
  1,325
Funds from operations, $m
  3,912
  5,757
  5,814
  5,867
  5,923
  5,983
  6,047
  6,115
  6,187
  6,264
  6,345
  6,016
  6,107
  6,202
  6,303
  6,410
  6,522
  6,641
  6,765
  6,896
  7,035
  7,180
  7,333
  7,494
  7,664
  7,842
  8,029
  8,226
  8,433
  8,650
  8,879
Change in working capital, $m
  -1,380
  13
  15
  16
  18
  19
  21
  23
  24
  26
  28
  29
  31
  33
  35
  37
  39
  42
  44
  46
  49
  52
  54
  57
  60
  63
  67
  70
  74
  78
  82
Cash from operations, $m
  5,292
  5,744
  5,800
  5,851
  5,905
  5,964
  6,026
  6,092
  6,163
  6,238
  6,317
  5,987
  6,076
  6,169
  6,268
  6,373
  6,483
  6,599
  6,721
  6,850
  6,986
  7,129
  7,279
  7,437
  7,603
  7,778
  7,962
  8,156
  8,359
  8,573
  8,797
Maintenance CAPEX, $m
  0
  -383
  -392
  -403
  -415
  -429
  -444
  -459
  -477
  -495
  -515
  -536
  -558
  -582
  -607
  -633
  -661
  -691
  -723
  -756
  -791
  -828
  -867
  -908
  -951
  -997
  -1,045
  -1,095
  -1,148
  -1,204
  -1,263
New CAPEX, $m
  0
  -95
  -111
  -123
  -135
  -147
  -159
  -171
  -184
  -196
  -209
  -223
  -237
  -251
  -266
  -282
  -298
  -315
  -332
  -351
  -370
  -390
  -411
  -433
  -455
  -479
  -504
  -531
  -558
  -587
  -617
Cash from investing activities, $m
  -5,315
  -478
  -503
  -526
  -550
  -576
  -603
  -630
  -661
  -691
  -724
  -759
  -795
  -833
  -873
  -915
  -959
  -1,006
  -1,055
  -1,107
  -1,161
  -1,218
  -1,278
  -1,341
  -1,406
  -1,476
  -1,549
  -1,626
  -1,706
  -1,791
  -1,880
Free cash flow, $m
  -23
  5,267
  5,296
  5,324
  5,355
  5,388
  5,424
  5,462
  5,503
  5,546
  5,593
  5,228
  5,281
  5,336
  5,395
  5,457
  5,523
  5,593
  5,666
  5,743
  5,825
  5,911
  6,001
  6,096
  6,196
  6,302
  6,413
  6,530
  6,652
  6,781
  6,917
Issuance/(repayment) of debt, $m
  -1
  2,682
  3,243
  3,589
  3,934
  4,280
  4,630
  4,986
  5,349
  5,720
  6,102
  6,496
  6,902
  7,323
  7,759
  8,212
  8,684
  9,174
  9,686
  10,220
  10,777
  11,359
  11,968
  12,604
  13,270
  13,967
  14,697
  15,461
  16,262
  17,102
  17,982
Issuance/(repurchase) of shares, $m
  167
  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
  12
  226
Cash from financing (excl. dividends), $m  
  431
  2,682
  3,243
  3,589
  3,934
  4,280
  4,630
  4,986
  5,349
  5,720
  6,102
  6,496
  6,902
  7,323
  7,759
  8,212
  8,684
  9,174
  9,686
  10,220
  10,777
  11,359
  11,968
  12,604
  13,270
  13,967
  14,697
  15,461
  16,262
  17,114
  18,208
Total cash flow (excl. dividends), $m
  383
  7,949
  8,540
  8,913
  9,289
  9,668
  10,054
  10,448
  10,852
  11,267
  11,695
  11,724
  12,183
  12,659
  13,154
  13,670
  14,207
  14,767
  15,352
  15,963
  16,602
  17,270
  17,969
  18,700
  19,466
  20,269
  21,110
  21,991
  22,915
  23,895
  25,124
Retained Cash Flow (-), $m
  -19,140
  -1,132
  -1,403
  -1,553
  -1,702
  -1,852
  -2,003
  -2,157
  -2,314
  -2,475
  -2,640
  -2,810
  -2,986
  -3,168
  -3,357
  -3,553
  -3,757
  -3,969
  -4,191
  -4,422
  -4,663
  -4,915
  -5,178
  -5,453
  -5,741
  -6,043
  -6,359
  -6,690
  -7,036
  -7,399
  -7,780
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
 
  6,816
  7,136
  7,361
  7,587
  7,816
  8,051
  8,291
  8,537
  8,792
  9,055
  8,914
  9,197
  9,491
  9,797
  10,117
  10,450
  10,798
  11,161
  11,541
  11,939
  12,355
  12,791
  13,247
  13,725
  14,226
  14,751
  15,301
  15,878
  16,496
  17,344
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
 
  6,517
  6,494
  6,345
  6,165
  5,955
  5,717
  5,454
  5,169
  4,865
  4,545
  4,026
  3,706
  3,382
  3,057
  2,737
  2,424
  2,123
  1,837
  1,570
  1,324
  1,100
  901
  726
  575
  448
  342
  256
  188
  135
  95
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
  99.9

Chubb Limited is a holding company. The Company, through its subsidiaries, provides a range of insurance and reinsurance products and services to clients around the world. Its segments include North America Commercial property and casualty (P&C) Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance and Life Insurance. It offers commercial insurance products and service offerings, such as risk management programs, loss control, and engineering and complex claims management. It provides specialized insurance products to areas, such as aviation and energy. It also offers personal lines insurance coverage, including homeowners, automobile, valuables, umbrella liability and recreational marine products. In addition, it supplies personal accident, supplemental health and life insurance to individuals in select countries.

FINANCIAL RATIOS  of  Chubb (CB)

Valuation Ratios
P/E Ratio 17
Price to Sales 2.2
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 13.3
Price to Free Cash Flow 13.3
Growth Rates
Sales Growth Rate 65.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio 0
Current Ratio NaN
LT Debt to Equity 26.8%
Total Debt to Equity 27.8%
Interest Coverage 9
Management Effectiveness
Return On Assets 3.6%
Ret/ On Assets - 3 Yr. Avg. 3.3%
Return On Total Capital 8.2%
Ret/ On T. Cap. - 3 Yr. Avg. 8%
Return On Equity 10.7%
Return On Equity - 3 Yr. Avg. 10%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 17.7%
EBITDA Margin - 3 Yr. Avg. 18.6%
Operating Margin 16.8%
Oper. Margin - 3 Yr. Avg. 17.9%
Pre-Tax Margin 15.7%
Pre-Tax Margin - 3 Yr. Avg. 17%
Net Profit Margin 13.1%
Net Profit Margin - 3 Yr. Avg. 14.3%
Effective Tax Rate 16.5%
Eff/ Tax Rate - 3 Yr. Avg. 16.2%
Payout Ratio 28.4%

CB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CB stock intrinsic value calculation we used $31572 million for the last fiscal year's total revenue generated by Chubb. The default revenue input number comes from 2016 income statement of Chubb. 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 CB stock valuation model: a) initial revenue growth rate of 2.6% 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 CB is calculated based on our internal credit rating of Chubb, 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 Chubb.
    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 CB stock the variable cost ratio is equal to 81.6%.

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 CB 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 5.6% for Chubb.

Corporate tax rate of 27% is the nominal tax rate for Chubb. 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 CB 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 CB are equal to 12.1%.

Life of production assets of 10 years is the average useful life of capital assets used in Chubb 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 CB is equal to 1.6%. 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 - $48275 million for Chubb - 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 465.39 million for Chubb 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 Chubb at the current share price and the inputted number of shares is $70.0 billion.

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COMPANY NEWS

▶ ETFs with exposure to Chubb Ltd. : December 11, 2017   [Dec-11-17 01:39PM  Capital Cube]
▶ Chubb Issues Statement on the Death of Dean O'Hare   [Dec-04-17 03:17PM  PR Newswire]
▶ Chubb Ltd. Value Analysis (NYSE:CB) : November 28, 2017   [Nov-28-17 01:38PM  Capital Cube]
▶ Chubbs Premium Valuations after Its 3Q17 Earnings   [Nov-24-17 10:30AM  Market Realist]
▶ Understanding Chubbs Agricultural Insurance Division   [Nov-23-17 10:31AM  Market Realist]
▶ Assessing Chubbs Global Reinsurance Division   [07:32AM  Market Realist]
▶ Behind the Fall in Chubbs Personal Property Divisions Income   [Nov-22-17 10:33AM  Market Realist]
▶ Chubb Limited Reported a Net Loss in 3Q17   [07:34AM  Market Realist]
▶ Chubb Limited Board Declares Quarterly Dividend   [Nov-16-17 10:15AM  PR Newswire]
▶ Strong Q3 Earnings Push Insurance ETFs Higher   [Nov-15-17 09:59AM  Zacks]
▶ Have Investors Already Priced In Chubb Limiteds (CB) Growth?   [Nov-10-17 11:25AM  Simply Wall St.]
▶ Chubb Corporation Stock Upgraded: What You Need to Know   [Nov-08-17 12:53PM  Motley Fool]
▶ [$$] As Wildfires Raged, Insurers Used Private Firefighters   [Nov-05-17 01:49PM  The Wall Street Journal]
▶ Chubb Limited to Host Earnings Call   [06:30AM  ACCESSWIRE]
▶ Chubb reports 3Q loss   [Oct-26-17 04:19PM  Associated Press]
▶ [$$] New York Regulator Probes NRA-Branded Self-Defense Insurance   [Oct-24-17 06:56PM  The Wall Street Journal]
▶ Behind Chubbs North America Commercial Insurance   [Oct-23-17 07:35AM  Market Realist]
▶ Analyzing Chubbs Global Reinsurance Business   [Oct-20-17 10:36AM  Market Realist]
▶ What Analysts Are Saying about Chubb Limited   [09:07AM  Market Realist]
▶ What Led to Chubbs Discounted Valuations?   [07:37AM  Market Realist]
▶ Inside Chubbs Overseas General Insurance Division   [Oct-18-17 10:41AM  Market Realist]
▶ Chubbs Net Investment Income Rose in 1H17   [07:44AM  Market Realist]
▶ 3 Stocks to Hold for the Next 20 Years   [Sep-30-17 09:00AM  Motley Fool]
Financial statements of CB
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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