The Progressive Corporation operates as an insurance company in the United States. It writes insurance for personal autos and special lines products, including motorcycles, RVs, and watercraft; and personal residential property insurance for homeowners and renters.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.
| Parameter | BaseValue |
|---|---|
Initial Cash Flow | |
| Growth Rate (Yr 1-5) | % |
| Growth Rate (Yr 6-10) | % |
| Terminal Growth Rate | % |
| Discount Rate | % |
Base Case $300.63 Implied EV: $173.11B |
What growth rate is the market pricing in at $203?
The market implies -1.5% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding -7.6%, reflecting heavy growth investment expected to generate future returns.
Narrow moat with revenue predictability as the key competitive advantage. Improving margin stability would strengthen the moat.
"Market is pessimistic — investigate whether fears are temporary or structural"
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
