Discounted Cash Flow

Selective Insurance Group Inc.

SIGI · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $2.3b $158.5m $283.6m 6.9% $2.74
2017 $2.5b (8.1%) $168.8m (6.5%) $356.7m (25.7%) 6.8% (-1.5%) $2.89 (5.5%)
2018 $2.6b (4.7%) $178.9m (6.0%) $438.8m (23.0%) 6.9% (1.2%) $3.04 (5.2%)
2019 $2.8b (10.1%) $271.6m (51.8%) $446.5m (1.7%) 9.5% (37.9%) $4.57 (50.3%)
2020 $2.9b (2.7%) $246.4m (-9.3%) $532.0m (19.1%) 8.4% (-11.7%) $4.12 (-9.8%)
2021 $3.4b (15.6%) $403.8m (63.9%) $749.3m (40.8%) 12.0% (41.8%) $6.55 (59.0%)
2022 $3.6b (5.3%) $224.9m (-44.3%) $776.4m (3.6%) 6.3% (-47.1%) $3.57 (-45.5%)
2023 $4.2b (18.9%) $365.2m (62.4%) $736.3m (-5.2%) 8.6% (36.5%) $5.87 (64.4%)
2024 $4.9b (14.9%) $207.0m (-43.3%) $1.1b (45.2%) 4.3% (-50.7%) $3.25 (-44.6%)
2025 $5.3b (9.8%) $466.4m (125.3%) $1.2b (11.7%) 8.7% (105.2%) $7.54 (132.0%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model