GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » The Travelers Companies Inc (WBO:TRV) » Definitions » Shiller PE Ratio

The Travelers (WBO:TRV) Shiller PE Ratio : 16.75 (As of Apr. 27, 2024)


View and export this data going back to 2017. Start your Free Trial

What is The Travelers Shiller PE Ratio?

As of today (2024-04-27), The Travelers's current share price is €198.35. The Travelers's E10 for the quarter that ended in Mar. 2024 was €11.84. The Travelers's Shiller PE Ratio for today is 16.75.

The historical rank and industry rank for The Travelers's Shiller PE Ratio or its related term are showing as below:

WBO:TRV' s Shiller PE Ratio Range Over the Past 10 Years
Min: 9.83   Med: 14.99   Max: 18.4
Current: 16.72

During the past years, The Travelers's highest Shiller PE Ratio was 18.40. The lowest was 9.83. And the median was 14.99.

WBO:TRV's Shiller PE Ratio is ranked worse than
62.88% of 361 companies
in the Insurance industry
Industry Median: 13.13 vs WBO:TRV: 16.72

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

The Travelers's adjusted earnings per share data for the three months ended in Mar. 2024 was €4.416. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €11.84 for the trailing ten years ended in Mar. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


The Travelers Shiller PE Ratio Historical Data

The historical data trend for The Travelers's Shiller PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Travelers Shiller PE Ratio Chart

The Travelers Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Shiller PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.11 14.86 13.99 15.26 15.00

The Travelers Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Shiller PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.60 13.99 13.17 15.00 17.98

Competitive Comparison of The Travelers's Shiller PE Ratio

For the Insurance - Property & Casualty subindustry, The Travelers's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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's Shiller PE Ratio Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, The Travelers's Shiller PE Ratio distribution charts can be found below:

* The bar in red indicates where The Travelers's Shiller PE Ratio falls into.



The Travelers Shiller PE Ratio Calculation

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

The Travelers's Shiller PE Ratio for today is calculated as

Shiller PE Ratio=Share Price/ E10
=198.35/11.84
=16.75

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The Travelers's E10 for the quarter that ended in Mar. 2024 is calculated as:

For example, The Travelers's adjusted earnings per share data for the three months ended in Mar. 2024 was:

Adj_EPS=Earnings per Share (Diluted)/CPI of Mar. 2024 (Change)*Current CPI (Mar. 2024)
=4.416/129.4194*129.4194
=4.416

Current CPI (Mar. 2024) = 129.4194.

The Travelers Quarterly Data

Earnings per Share (Diluted) CPI Adj_EPS
201406 1.435 100.560 1.847
201409 2.087 100.428 2.689
201412 2.522 99.070 3.295
201503 2.356 99.621 3.061
201506 2.254 100.684 2.897
201509 2.646 100.392 3.411
201512 2.598 99.792 3.369
201603 2.065 100.470 2.660
201606 1.994 101.688 2.538
201609 2.183 101.861 2.774
201612 3.109 101.863 3.950
201703 2.029 102.862 2.553
201706 1.878 103.349 2.352
201709 0.881 104.136 1.095
201712 1.673 104.011 2.082
201803 1.963 105.290 2.413
201806 1.644 106.317 2.001
201809 2.245 106.507 2.728
201812 1.872 105.998 2.286
201903 2.646 107.251 3.193
201906 1.859 108.070 2.226
201909 1.362 108.329 1.627
201912 3.015 108.420 3.599
202003 2.109 108.902 2.506
202006 -0.142 108.767 -0.169
202009 2.742 109.815 3.232
202012 4.192 109.897 4.937
202103 2.411 111.754 2.792
202106 3.038 114.631 3.430
202109 2.227 115.734 2.490
202112 4.752 117.630 5.228
202203 3.768 121.301 4.020
202206 2.147 125.017 2.223
202209 1.909 125.227 1.973
202212 3.247 125.222 3.356
202303 3.857 127.348 3.920
202306 -0.065 128.729 -0.065
202309 1.630 129.860 1.624
202312 6.410 129.419 6.410
202403 4.416 129.419 4.416

Add all the adjusted EPS together and divide 10 will get our E10.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


The Travelers  (WBO:TRV) Shiller PE Ratio Explanation

Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.

Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.


Be Aware

Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.


The Travelers Shiller PE Ratio Related Terms

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


The Travelers (WBO:TRV) Business Description

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. Travelers derives 6% of its premiums from foreign markets.