Insurance - Diversified · NYSE
Current Price
$136.64
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on The Hartford Financial Services Group, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
The Hartford Financial Services Group, Inc. provides insurance and financial services to individual and business customers in the United States, the United Kingdom, and internationally. Its Commercial Lines segment offers workers' compensation, property, automobile, liability, umbrella, bond, marine, livestock, and reinsurance; and customized insurance products and risk management services, including professional liability, bond, surety, and specialty casualty coverages through regional offices, branches, sales and policyholder service centers, independent retail agents and brokers, wholesale agents, and reinsurance brokers. The company's Personal Lines segment provides automobile, homeowners, and personal umbrella coverages through direct-to-consumer channel and independent agents. Its Property & Casualty Other Operations segment offers coverage for asbestos and environmental exposures. The company's Group Benefits segment provides group life, disability, and other group coverages to members of employer groups, associations, and affinity groups through direct insurance policies; reinsurance to other insurance companies; employer paid and voluntary product coverages; disability underwriting, administration, and claims processing to self-funded employer plans; and a single-company leave management solution. This segment distributes its group insurance products and services through brokers, consultants, third-party administrators, trade associations, and private exchanges. Its Hartford Funds segment offers investment products for retail and retirement accounts; exchange-traded products through broker-dealer organizations, independent financial advisers, defined contribution plans, financial consultants, bank trust groups, and registered investment advisers; and investment management and administrative services, such as product design, implementation, and oversight. The company was founded in 1810 and is headquartered in Hartford, Connecticut.
ROIC (TTM)
29.2%
ROE (TTM)
22.0%
FCF Yield
15.54%
Based on trailing twelve-month data, HIG shows a free cash flow per share of N/A and a ROIC of 29.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 15.54% are important context metrics when evaluating HIG's stock valuation relative to peers.
The intrinsic value of HIG 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 HIG is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $136.64. 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 Hartford Financial Services Group, Inc.: (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 - Diversified industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting HIG'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 Hartford Financial Services Group, Inc., this means projecting how much free cash flow the Insurance - Diversified will produce over the next 5-10 years, then discounting those amounts to today's dollars. HIG's ROIC of 29.2% 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 HIG, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
