Insurance - Property & Casualty · NYSE
Current Price
$212.33
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on The Allstate Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for ALLThe Allstate Corporation, together with its subsidiaries, provides property and casualty, and other insurance products in the United States and Canada. The company operates through Allstate Protection; Protection Services; Allstate Health and Benefits; and Run-off Property-Liability segments. The Allstate Protection segment offers private passenger auto and homeowners insurance; specialty auto products, including motorcycle, trailer, motor home, and off-road vehicle insurance; other personal lines products, such as renter, condominium, landlord, boat, umbrella, and manufactured home and stand-alone scheduled personal property; and commercial lines products under the Allstate and Encompass brand names. The Protection Services segment provides consumer product protection plans and related technical support for mobile phones, consumer electronics, furniture, and appliances; finance and insurance products, including vehicle service contracts, guaranteed asset protection waivers, road hazard tire and wheel, and paint and fabric protection; roadside assistance; device and mobile data collection services; data and analytic solutions using automotive telematics information; and identity protection services. This segment offers its products under various brands including Allstate Protection Plans, Allstate Dealer Services, Allstate Roadside Services, Arity, and Allstate Identity Protection. The Allstate Health and Benefits provides life, accident, critical illness, short-term disability, and other health insurance products. The Run-off Property-Liability offers property and casualty insurance. It sells its products through call centers, agencies, financial specialists, independent agents, brokers, wholesale partners, and affinity groups, as well as through online and mobile applications. The Allstate Corporation was founded in 1931 and is based in Northbrook, Illinois.
ROIC (TTM)
60.4%
ROE (TTM)
42.7%
FCF Yield
18.02%
Based on trailing twelve-month data, ALL shows a free cash flow per share of N/A and a ROIC of 60.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 18.02% are important context metrics when evaluating ALL's stock valuation relative to peers.
The intrinsic value of ALL depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether ALL is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $212.33. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on The Allstate Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Insurance - Property & Casualty industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting ALL's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For The Allstate Corporation, this means projecting how much free cash flow the Insurance - Property & Casualty will produce over the next 5-10 years, then discounting those amounts to today's dollars. ALL's ROIC of 60.4% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For ALL, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
