Intrinsic value of Hartford Financial Services Group - HIG

Previous Close

$56.49

  Intrinsic Value

$140.35

stock screener

  Rating & Target

str. buy

+148%

Previous close

$56.49

 
Intrinsic value

$140.35

 
Up/down potential

+148%

 
Rating

str. buy

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

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

We calculate the intrinsic value of HIG 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 20.6

 

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, %
  -0.65
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  0
  18,731
  19,162
  19,655
  20,207
  20,820
  21,492
  22,224
  23,017
  23,870
  24,786
  25,766
  26,812
  27,925
  29,109
  30,364
  31,695
  33,104
  34,593
  36,167
  37,829
  39,582
  41,431
  43,381
  45,434
  47,597
  49,875
  52,272
  54,794
  57,448
  60,239
Variable operating expenses, $m
 
  16,370
  16,745
  17,174
  17,656
  18,189
  18,775
  19,412
  20,102
  20,845
  21,643
  22,440
  23,351
  24,321
  25,351
  26,445
  27,604
  28,830
  30,128
  31,498
  32,946
  34,473
  36,083
  37,781
  39,569
  41,453
  43,437
  45,524
  47,721
  50,032
  52,463
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
  17,221
  16,370
  16,745
  17,174
  17,656
  18,189
  18,775
  19,412
  20,102
  20,845
  21,643
  22,440
  23,351
  24,321
  25,351
  26,445
  27,604
  28,830
  30,128
  31,498
  32,946
  34,473
  36,083
  37,781
  39,569
  41,453
  43,437
  45,524
  47,721
  50,032
  52,463
Operating income, $m
  1,143
  2,361
  2,417
  2,480
  2,552
  2,631
  2,718
  2,812
  2,914
  3,025
  3,143
  3,326
  3,461
  3,605
  3,758
  3,920
  4,091
  4,273
  4,466
  4,669
  4,883
  5,110
  5,348
  5,600
  5,865
  6,144
  6,438
  6,748
  7,073
  7,416
  7,776
EBITDA, $m
  3,064
  2,620
  2,681
  2,749
  2,827
  2,912
  3,006
  3,109
  3,220
  3,339
  3,467
  3,604
  3,751
  3,906
  4,072
  4,248
  4,434
  4,631
  4,839
  5,059
  5,292
  5,537
  5,796
  6,068
  6,356
  6,658
  6,977
  7,312
  7,665
  8,036
  8,427
Interest expense (income), $m
  336
  328
  267
  575
  926
  1,320
  1,757
  2,237
  2,759
  3,324
  3,933
  4,587
  5,286
  6,032
  6,826
  7,671
  8,566
  9,516
  10,521
  11,583
  12,706
  13,892
  15,143
  16,462
  17,852
  19,318
  20,861
  22,485
  24,195
  25,995
  27,888
Earnings before tax, $m
  804
  2,033
  2,150
  1,906
  1,626
  1,311
  960
  575
  155
  -300
  -790
  -1,261
  -1,825
  -2,427
  -3,069
  -3,751
  -4,475
  -5,242
  -6,055
  -6,915
  -7,823
  -8,782
  -9,794
  -10,862
  -11,987
  -13,173
  -14,422
  -15,738
  -17,122
  -18,579
  -20,112
Tax expense, $m
  -92
  549
  580
  515
  439
  354
  259
  155
  42
  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
  896
  1,484
  1,569
  1,391
  1,187
  957
  701
  420
  113
  -300
  -790
  -1,261
  -1,825
  -2,427
  -3,069
  -3,751
  -4,475
  -5,242
  -6,055
  -6,915
  -7,823
  -8,782
  -9,794
  -10,862
  -11,987
  -13,173
  -14,422
  -15,738
  -17,122
  -18,579
  -20,112

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
  223,432
  228,430
  233,684
  239,690
  246,432
  253,903
  262,101
  271,027
  280,689
  291,099
  302,271
  314,222
  326,975
  340,554
  354,984
  370,297
  386,525
  403,703
  421,868
  441,062
  461,327
  482,711
  505,262
  529,033
  554,078
  580,455
  608,228
  637,461
  668,222
  700,584
  734,623
Adjusted assets (=assets-cash), $m
  223,432
  228,430
  233,684
  239,690
  246,432
  253,903
  262,101
  271,027
  280,689
  291,099
  302,271
  314,222
  326,975
  340,554
  354,984
  370,297
  386,525
  403,703
  421,868
  441,062
  461,327
  482,711
  505,262
  529,033
  554,078
  580,455
  608,228
  637,461
  668,222
  700,584
  734,623
Revenue / Adjusted assets
  0.000
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
  0.082
Average production assets, $m
  983
  1,011
  1,035
  1,061
  1,091
  1,124
  1,161
  1,200
  1,243
  1,289
  1,338
  1,391
  1,448
  1,508
  1,572
  1,640
  1,712
  1,788
  1,868
  1,953
  2,043
  2,137
  2,237
  2,343
  2,453
  2,570
  2,693
  2,823
  2,959
  3,102
  3,253
Working capital, $m
  0
  431
  441
  452
  465
  479
  494
  511
  529
  549
  570
  593
  617
  642
  670
  698
  729
  761
  796
  832
  870
  910
  953
  998
  1,045
  1,095
  1,147
  1,202
  1,260
  1,321
  1,385
Total debt, $m
  5,052
  4,110
  8,839
  14,244
  20,312
  27,036
  34,414
  42,447
  51,144
  60,512
  70,567
  81,323
  92,801
  105,021
  118,009
  131,791
  146,396
  161,855
  178,204
  195,479
  213,718
  232,963
  253,259
  274,652
  297,193
  320,933
  345,928
  372,238
  399,922
  429,048
  459,683
Total liabilities, $m
  206,529
  205,587
  210,316
  215,721
  221,789
  228,513
  235,891
  243,924
  252,621
  261,989
  272,044
  282,800
  294,278
  306,498
  319,486
  333,268
  347,873
  363,332
  379,681
  396,956
  415,195
  434,440
  454,736
  476,129
  498,670
  522,410
  547,405
  573,715
  601,399
  630,525
  661,160
Total equity, $m
  16,903
  22,843
  23,368
  23,969
  24,643
  25,390
  26,210
  27,103
  28,069
  29,110
  30,227
  31,422
  32,698
  34,055
  35,498
  37,030
  38,653
  40,370
  42,187
  44,106
  46,133
  48,271
  50,526
  52,903
  55,408
  58,046
  60,823
  63,746
  66,822
  70,058
  73,462
Total liabilities and equity, $m
  223,432
  228,430
  233,684
  239,690
  246,432
  253,903
  262,101
  271,027
  280,690
  291,099
  302,271
  314,222
  326,976
  340,553
  354,984
  370,298
  386,526
  403,702
  421,868
  441,062
  461,328
  482,711
  505,262
  529,032
  554,078
  580,456
  608,228
  637,461
  668,221
  700,583
  734,622
Debt-to-equity ratio
  0.299
  0.180
  0.380
  0.590
  0.820
  1.060
  1.310
  1.570
  1.820
  2.080
  2.330
  2.590
  2.840
  3.080
  3.320
  3.560
  3.790
  4.010
  4.220
  4.430
  4.630
  4.830
  5.010
  5.190
  5.360
  5.530
  5.690
  5.840
  5.980
  6.120
  6.260
Adjusted equity ratio
  0.076
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  896
  1,484
  1,569
  1,391
  1,187
  957
  701
  420
  113
  -300
  -790
  -1,261
  -1,825
  -2,427
  -3,069
  -3,751
  -4,475
  -5,242
  -6,055
  -6,915
  -7,823
  -8,782
  -9,794
  -10,862
  -11,987
  -13,173
  -14,422
  -15,738
  -17,122
  -18,579
  -20,112
Depreciation, amort., depletion, $m
  1,921
  259
  264
  269
  275
  282
  289
  297
  305
  314
  324
  278
  290
  302
  314
  328
  342
  358
  374
  391
  409
  427
  447
  469
  491
  514
  539
  565
  592
  620
  651
Funds from operations, $m
  1,297
  1,743
  1,833
  1,660
  1,462
  1,238
  990
  717
  419
  15
  -466
  -982
  -1,535
  -2,126
  -2,754
  -3,423
  -4,133
  -4,885
  -5,681
  -6,524
  -7,414
  -8,355
  -9,347
  -10,393
  -11,497
  -12,659
  -13,884
  -15,173
  -16,530
  -17,959
  -19,461
Change in working capital, $m
  -769
  8
  10
  11
  13
  14
  15
  17
  18
  20
  21
  23
  24
  26
  27
  29
  31
  32
  34
  36
  38
  40
  43
  45
  47
  50
  52
  55
  58
  61
  64
Cash from operations, $m
  2,066
  1,735
  1,823
  1,649
  1,449
  1,224
  974
  700
  400
  -5
  -487
  -1,005
  -1,559
  -2,151
  -2,782
  -3,452
  -4,163
  -4,917
  -5,716
  -6,560
  -7,453
  -8,395
  -9,389
  -10,438
  -11,544
  -12,709
  -13,936
  -15,228
  -16,588
  -18,020
  -19,526
Maintenance CAPEX, $m
  0
  -197
  -202
  -207
  -212
  -218
  -225
  -232
  -240
  -249
  -258
  -268
  -278
  -290
  -302
  -314
  -328
  -342
  -358
  -374
  -391
  -409
  -427
  -447
  -469
  -491
  -514
  -539
  -565
  -592
  -620
New CAPEX, $m
  -224
  -29
  -23
  -27
  -30
  -33
  -36
  -40
  -43
  -46
  -49
  -53
  -56
  -60
  -64
  -68
  -72
  -76
  -80
  -85
  -90
  -95
  -100
  -105
  -111
  -117
  -123
  -129
  -136
  -143
  -151
Cash from investing activities, $m
  949
  -226
  -225
  -234
  -242
  -251
  -261
  -272
  -283
  -295
  -307
  -321
  -334
  -350
  -366
  -382
  -400
  -418
  -438
  -459
  -481
  -504
  -527
  -552
  -580
  -608
  -637
  -668
  -701
  -735
  -771
Free cash flow, $m
  3,015
  1,509
  1,597
  1,415
  1,207
  973
  713
  428
  118
  -299
  -794
  -1,326
  -1,894
  -2,501
  -3,147
  -3,834
  -4,563
  -5,336
  -6,154
  -7,019
  -7,933
  -8,898
  -9,917
  -10,991
  -12,123
  -13,316
  -14,573
  -15,896
  -17,289
  -18,755
  -20,297
Issuance/(repayment) of debt, $m
  -104
  -942
  4,729
  5,405
  6,068
  6,724
  7,378
  8,034
  8,696
  9,369
  10,054
  10,757
  11,478
  12,221
  12,988
  13,782
  14,605
  15,460
  16,349
  17,274
  18,239
  19,245
  20,296
  21,393
  22,540
  23,740
  24,995
  26,309
  27,685
  29,126
  30,635
Issuance/(repurchase) of shares, $m
  -1,321
  4,456
  0
  0
  0
  0
  119
  473
  853
  1,341
  1,908
  2,456
  3,100
  3,785
  4,512
  5,282
  6,098
  6,960
  7,872
  8,834
  9,849
  10,920
  12,049
  13,239
  14,492
  15,811
  17,200
  18,661
  20,198
  21,815
  23,516
Cash from financing (excl. dividends), $m  
  -2,207
  3,514
  4,729
  5,405
  6,068
  6,724
  7,497
  8,507
  9,549
  10,710
  11,962
  13,213
  14,578
  16,006
  17,500
  19,064
  20,703
  22,420
  24,221
  26,108
  28,088
  30,165
  32,345
  34,632
  37,032
  39,551
  42,195
  44,970
  47,883
  50,941
  54,151
Total cash flow (excl. dividends), $m
  768
  5,023
  6,326
  6,821
  7,275
  7,697
  8,210
  8,935
  9,667
  10,410
  11,168
  11,887
  12,684
  13,505
  14,352
  15,230
  16,140
  17,084
  18,067
  19,090
  20,156
  21,268
  22,429
  23,641
  24,909
  26,235
  27,622
  29,074
  30,594
  32,186
  33,854
Retained Cash Flow (-), $m
  739
  -5,940
  -525
  -601
  -674
  -747
  -820
  -893
  -966
  -1,341
  -1,908
  -2,456
  -3,100
  -3,785
  -4,512
  -5,282
  -6,098
  -6,960
  -7,872
  -8,834
  -9,849
  -10,920
  -12,049
  -13,239
  -14,492
  -15,811
  -17,200
  -18,661
  -20,198
  -21,815
  -23,516
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
 
  -917
  5,801
  6,220
  6,601
  6,950
  7,390
  8,042
  8,700
  9,069
  9,260
  9,431
  9,583
  9,720
  9,841
  9,948
  10,042
  10,124
  10,195
  10,256
  10,306
  10,347
  10,379
  10,402
  10,417
  10,424
  10,422
  10,413
  10,396
  10,371
  10,339
Discount rate, %
 
  4.40
  4.62
  4.85
  5.09
  5.35
  5.62
  5.90
  6.19
  6.50
  6.83
  7.17
  7.53
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.43
  17.25
  18.11
PV of cash for distribution, $m
 
  -878
  5,300
  5,396
  5,411
  5,356
  5,324
  5,385
  5,381
  5,145
  4,785
  4,404
  4,012
  3,616
  3,224
  2,842
  2,475
  2,129
  1,808
  1,515
  1,251
  1,018
  815
  642
  497
  378
  282
  206
  147
  103
  70
Current shareholders' claim on cash, %
  100
  82.2
  82.2
  82.2
  82.2
  82.2
  81.9
  80.7
  78.7
  75.7
  71.8
  67.3
  62.3
  56.9
  51.3
  45.7
  40.3
  35.1
  30.2
  25.8
  21.8
  18.3
  15.1
  12.5
  10.2
  8.2
  6.6
  5.3
  4.2
  3.3
  2.6

The Hartford Financial Services Group, Inc. is a holding company for insurance and financial services subsidiaries. The Company's segments include Commercial Lines, which provides workers' compensation, property, automobile, marine, livestock, liability and umbrella coverages primarily throughout the United States; Personal Lines, which provides automobile, homeowners and personal umbrella coverages to individuals across the United States; Group Benefits, which provides group life, accident and disability coverage, and other products and services; Property & Casualty Other Operations, which includes certain property and casualty operations; Mutual Funds, which provides investment management, administration, product distribution and related services to investors; Talcott Resolution, which consists of the run-off of the Company's the United States individual and institutional annuity, and Private Placement Life Insurance (PPLI) businesses, and Corporate.

FINANCIAL RATIOS  of  Hartford Financial Services Group (HIG)

Valuation Ratios
P/E Ratio 23.6
Price to Sales 1.2
Price to Book 1.2
Price to Tangible Book
Price to Cash Flow 10.2
Price to Free Cash Flow 11.5
Growth Rates
Sales Growth Rate -0.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -27%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio 0
Current Ratio NaN
LT Debt to Equity 27.4%
Total Debt to Equity 29.9%
Interest Coverage 3
Management Effectiveness
Return On Assets 0.6%
Ret/ On Assets - 3 Yr. Avg. 0.6%
Return On Total Capital 4%
Ret/ On T. Cap. - 3 Yr. Avg. 4.7%
Return On Equity 5.2%
Return On Equity - 3 Yr. Avg. 6.2%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 16.7%
EBITDA Margin - 3 Yr. Avg. 20.4%
Operating Margin 6.2%
Oper. Margin - 3 Yr. Avg. 10%
Pre-Tax Margin 4.4%
Pre-Tax Margin - 3 Yr. Avg. 8.1%
Net Profit Margin 4.9%
Net Profit Margin - 3 Yr. Avg. 6.1%
Effective Tax Rate -11.4%
Eff/ Tax Rate - 3 Yr. Avg. 8.2%
Payout Ratio 37.3%

HIG stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the HIG stock intrinsic value calculation we used $18364 million for the last fiscal year's total revenue generated by Hartford Financial Services Group. The default revenue input number comes from 2016 income statement of Hartford Financial Services Group. 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 HIG stock valuation model: a) initial revenue growth rate of 2% 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 4.4%, whose default value for HIG is calculated based on our internal credit rating of Hartford Financial Services Group, 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 Hartford Financial Services Group.
    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 HIG stock the variable cost ratio is equal to 87.4%.

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 HIG 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 6.5% for Hartford Financial Services Group.

Corporate tax rate of 27% is the nominal tax rate for Hartford Financial Services Group. 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 HIG 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 HIG are equal to 5.4%.

Life of production assets of 0.8 years is the average useful life of capital assets used in Hartford Financial Services Group 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 HIG is equal to 2.3%. 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 - $16903 million for Hartford Financial Services Group - 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 364.312 million for Hartford Financial Services Group 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 Hartford Financial Services Group at the current share price and the inputted number of shares is $20.6 billion.

RELATED COMPANIES Price Int.Val. Rating
AFG American Finan 105.26 271.43  str.buy
SIGI Selective Insu 55.80 125.04  str.buy
CINF Cincinnati Fin 76.46 67.74  hold
RLI RLI 58.03 56.30  hold
L Loews 49.00 34.45  sell
ACGL Arch Capital G 102.15 395.10  str.buy
WTM White Mountain 888.00 8,622.02  str.buy
HALL Hallmark Finan 11.41 23.97  str.buy

COMPANY NEWS

▶ [$$] Hartford to Pay $1.45 Billion for a Unit of Aetna   [07:38AM  The Wall Street Journal]
▶ The Hartford beats 3Q profit forecasts   [07:13AM  Associated Press]
▶ Insurance on the Street: What Analysts Think of the Giants   [Sep-15-17 09:08AM  Market Realist]
▶ What Hurricane Irma could mean for stocks   [Sep-08-17 06:50AM  Yahoo Finance]
▶ Bets Against Insurers Pile Up Ahead Of Hurricane Irma   [Sep-06-17 02:27PM  Barrons.com]
▶ Progressive: Here We Go Again   [Sep-05-17 03:53PM  Barrons.com]
▶ [$$] Hartford Welcomes New Resident: UConn   [12:21AM  The Wall Street Journal]
▶ The Hartford reports 2Q loss   [Jul-27-17 10:28PM  Associated Press]
▶ Risk Happens Fast: Doug Kass   [Jul-14-17 09:43AM  TheStreet.com]
▶ [$$] Hartfords Finances Spotlight Property-Tax Quandary   [Jun-07-17 12:17AM  The Wall Street Journal]
▶ Hartford Expands ETF Lineup With 2 Low Vol Funds   [May-12-17 10:13AM  Benzinga]
▶ The Hartford misses 1Q profit forecasts   [Apr-27-17 04:58PM  Associated Press]
Financial statements of HIG
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.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.