Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Chubb Limited (CB)

Company Dividend Discount ModelIndustry: Insurance - Property & CasualtySector: Financial Services

Valuation Snapshot

Stable Growth$1,331.04 - $4,694.57$4,399.50
Multi-Stage$592.03 - $648.23$619.61
Blended Fair Value$2,509.55
Current Price$282.25
Upside789.12%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS1.18%5.24%3.503.403.353.423.393.303.263.192.862.10
YoY Growth--3.01%1.38%-1.86%0.94%2.51%1.27%2.22%11.51%36.08%0.00%
Dividend Yield--1.16%1.32%1.73%1.60%2.14%2.96%2.31%2.33%2.10%1.77%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)9,675.00
(-) Cash Dividends Paid (M)1,488.00
(=) Cash Retained (M)8,187.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)1,935.001,209.38725.63
Cash Retained (M)8,187.008,187.008,187.00
(-) Cash Required (M)-1,935.00-1,209.38-725.63
(=) Excess Retained (M)6,252.006,977.637,461.38
(/) Shares Outstanding (M)409.86409.86409.86
(=) Excess Retained per Share15.2517.0218.20
LTM Dividend per Share3.633.633.63
(+) Excess Retained per Share15.2517.0218.20
(=) Adjusted Dividend18.8820.6521.84
WACC / Discount Rate7.00%7.00%7.00%
Growth Rate5.50%6.50%7.50%
Fair Value$1,331.04$4,399.50$4,694.57
Upside / Downside371.58%1,458.72%1,563.26%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)9,675.0010,303.8810,973.6311,686.9112,446.5613,255.5913,653.26
Payout Ratio15.38%30.30%45.23%60.15%75.08%90.00%92.50%
Projected Dividends (M)1,488.003,122.474,963.147,029.909,344.3811,930.0312,629.26

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.00%7.00%7.00%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)2,890.882,918.292,945.69
Year 2 PV (M)4,254.234,335.264,417.05
Year 3 PV (M)5,578.865,739.015,902.19
Year 4 PV (M)6,865.607,129.637,401.21
Year 5 PV (M)8,115.258,507.228,914.19
PV of Terminal Value (M)214,943.86225,325.73236,104.93
Equity Value (M)242,648.68253,955.13265,685.27
Shares Outstanding (M)409.86409.86409.86
Fair Value$592.03$619.61$648.23
Upside / Downside109.75%119.53%129.67%

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