Insurance - Property & Casualty · NYSE
Current Price
$325.75
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Chubb Limited with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical, cyber risk, surety, and excess casualty; and group accident and health insurance to large, middle market, and small commercial businesses. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services. The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm and ranch property, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction risk; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company's Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand to property and casualty companies. Its Life Insurance segment provides protection and savings products comprising whole life, endowment plans, individual term life, group term life, medical and health, personal accident, credit life, universal life, and unit linked contracts. The company markets its products primarily through insurance and reinsurance brokers. The company was formerly known as ACE Limited and changed its name to Chubb Limited in January 2016. Chubb Limited was incorporated in 1985 and is headquartered in Zurich, Switzerland.
ROIC (TTM)
32.5%
ROE (TTM)
15.6%
FCF Yield
12.51%
Based on trailing twelve-month data, CB shows a free cash flow per share of N/A and a ROIC of 32.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 12.51% are important context metrics when evaluating CB's stock valuation relative to peers.
The intrinsic value of CB 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 CB is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $325.75. 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 Chubb Limited: (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 CB'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 Chubb Limited, 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. CB's ROIC of 32.5% 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 CB, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
