MMarketMath

PGR

Fast growerQuality: High (90/100)

Progressive Corporation · Financials · Property & Casualty Insurance

$223.92

52w 189.20 – 249.83

20y monthly, adjusted

Mkt cap

$130.2B

P/E

11.3

P/FCF

7.4

FCF yield

13.5%

ROE

37.3%

Shldr yield

2.3%

div 2.3% + bb 0.0%

What today's price assumes

At $130.2B, the market is pricing in -6.2% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 23.0% per year — expectations look undemanding relative to history.

Simple DCF per-share range: $451 · $1,012 · $1,458 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 6.1× across 19 years, PGR would trade near $183/share (25th–75th percentile: $155–$205); it trades at 7.4× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+20.9%

Rev 5y

+15.5%

Rev 10y

+15.4%

EPS 5y

+14.8%

EPS 10y

+24.5%

FCF 5y

+20.8%

FCF 10y

+23.0%

Fundamentals

Fiscal 2007–2025, from SEC filings

Revenue

2007: $14.7B
2008: $12.8B
2009: $14.6B
2010: $15.2B
2011: $15.8B
2012: $17.1B
2013: $18.2B
2014: $19.4B
2015: $20.9B
2016: $23.4B
2017: $26.8B
2018: $32.0B
2019: $39.0B
2020: $42.7B
2021: $47.7B
2022: $49.6B
2023: $62.1B
2024: $75.4B
2025: $87.7B
$0$25.0B$50.0B$75.0B
07
11
15
19
23

Net income

2007: $1.2B
2008: −$70.0M
2009: $1.1B
2010: $1.1B
2011: $1.0B
2012: $902.3M
2013: $1.2B
2014: $1.3B
2015: $1.3B
2016: $1.0B
2017: $1.6B
2018: $2.6B
2019: $4.0B
2020: $5.7B
2021: $3.4B
2022: $722.0M
2023: $3.9B
2024: $8.5B
2025: $11.3B
$0$5.0B$10.0B
07
11
15
19
23

Free cash flow

2007: $1.7B
2008: $1.5B
2009: $1.4B
2010: $1.6B
2011: $1.4B
2012: $1.6B
2013: $1.8B
2014: $1.6B
2015: $2.2B
2016: $2.5B
2017: $3.6B
2018: $6.0B
2019: $5.9B
2020: $6.7B
2021: $7.5B
2022: $6.6B
2023: $10.4B
2024: $14.8B
2025: $17.2B
$0$5.0B$10.0B$15.0B
07
11
15
19
23

Diluted shares (lower is better)

2007: 718.5M
2008: 673.9M
2009: 672.2M
2010: 663.3M
2011: 636.9M
2012: 607.8M
2013: 603.6M
2014: 594.8M
2015: 589.2M
2016: 585.0M
2017: 585.7M
2018: 586.7M
2019: 587.2M
2020: 587.6M
2021: 587.1M
2022: 587.1M
2023: 587.5M
2024: 587.7M
2025: 588.1M
0200.0M400.0M600.0M
07
11
15
19
23

Margins

0%10%20%07101316192225
Net marginFCF margin

Capital returned (dividends + buybacks)

2007: $3.0B
2008: $277.7M
2009: $180.6M
2010: $1.0B
2011: $1.3B
2012: $1.0B
2013: $449.0M
2014: $1.2B
2015: $612.1M
2016: $711.5M
2017: $395.4M
2018: $654.9M
2019: $1.6B
2020: $1.6B
2021: $3.7B
2022: $234.0M
2023: $234.0M
2024: $674.0M
2025: $2.9B
$0$1.0B$2.0B$3.0B
07
11
15
19
23

Cash vs long-term debt

$0$1.0B$2.0B07101316192225
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q2'23: $15.4B
Q3'23: $15.6B
Q4'23: $16.9B
Q1'24: $17.2B
Q2'24: $18.1B
Q3'24: $19.7B
Q4'24: $20.3B
Q1'25: $20.4B
Q2'25: $22.0B
Q3'25: $22.5B
Q4'25: $22.7B
Q1'26: $22.2B
Q2'26: $23.6B
$0$10.0B$20.0B
23
24
24
25
26

Net income by quarter

Q2'23: $345.4M
Q3'23: $1.1B
Q4'23: $2.0B
Q1'24: $2.3B
Q2'24: $1.5B
Q3'24: $2.3B
Q4'24: $2.4B
Q1'25: $2.6B
Q2'25: $3.2B
Q3'25: $2.6B
Q4'25: $3.0B
Q1'26: $2.8B
Q2'26: $3.3B
$0$1.0B$2.0B$3.0B
23
24
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q2'26$23.6B+7.3%$3.3B+4.3%5.67$3.6B
Q1'26$22.2B+8.7%$2.8B+9.8%4.80$4.4B
Q4'25 *$22.7B+12.2%$3.0B+25.3%5.01$3.2B
Q3'25$22.5B+14.2%$2.6B+12.0%4.45$5.2B
Q2'25$22.0B+21.3%$3.2B+117.6%5.40$4.0B
Q1'25$20.4B+18.4%$2.6B+10.1%4.37$5.1B
Q4'24 *$20.3B+20.0%$2.4B+18.5%4.01$3.0B
Q3'24$19.7B+26.7%$2.3B+108.2%3.97$4.6B
Q2'24$18.1B+18.1%$1.5B+322.4%2.48$3.3B
Q1'24$17.2B+20.6%$2.3B+420.4%3.94$4.2B
Q4'23 *$16.9B+25.4%$2.0B+140.5%3.37$2.4B
Q3'23$15.6B+21.8%$1.1B+803.5%1.89$3.4B
Q2'23$15.4B+33.3%$345.4M0.57$2.3B

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+20.9%+15.5%+15.4%+12.4%
Operating cash flow+36.8%+20.5%+22.6%+16.9%
Free cash flow+37.9%+20.8%+23.0%+17.1%
EPS (diluted)+153.5%+14.8%+24.5%+18.0%
Equity+24.0%+12.2%+15.3%+11.3%
LT debt+9.5%+6.7%
Diluted shares+0.1%+0.0%−0.0%−0.8%
Stock price+22.4%+21.0%+24.7%+21.6%

$100, 3 years ago

$184vs $176 in SPY

22.4% vs 20.7%/yr

$100, 5 years ago

$260vs $181 in SPY

21.0% vs 12.6%/yr

$100, 10 years ago

$908vs $412 in SPY

24.7% vs 15.2%/yr

$100, 15 years ago

$1,874vs $813 in SPY

21.6% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$3.82

$76.5B created / $20.0B retained

Last 10 years

$3.60

$108.7B created / $30.2B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

57.9%

OCF ÷ (equity + debt)

OCF / EV yield

13.8%

MC vs 10× OCF

0.73

≤1 = priced under 10× OCF

Debt / FCF

SBC / FCF

0.8%

Owner earnings

$17.1B

OCF − capex − SBC

OE yield

13.4%

Share count 5y

−1.1%

per year; negative = buybacks

Growth engine (5y): reinvested 22.8% of operating cash flow at an incremental return of 80.5% — an organically fundable growth rate of about 18.4% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

23 of 24 checks pass · 96%. Checks with structurally missing inputs are excluded.

Growth & Consistency

7/7

  • Revenue growth

    15.5% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    14.8% · 5y CAGR ≥ 5%

    pass
  • FCF growth

    20.8% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    9 of 9 · up in ≥ 7 of last 10 years

    pass
  • FCF consistently positive

    10 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    10 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    20.5% vs 15.5% · OCF CAGR ≥ 0.9× revenue CAGR

    pass

Profitability

5/5

  • Net margin

    12.9% · ≥ 8%

    pass
  • Operating margin

    · ≥ 10%

    na
  • Gross margin stable or rising

    · no drop > 2 pts over 3y

    na
  • Return on equity

    37.3% · ≥ 12%

    pass
  • Cash ROIC

    57.9% · ≥ 12%

    pass
  • FCF margin

    19.6% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $17.5B vs NI $11.3B · OCF ≥ net income (latest FY)

    pass

Balance Sheet

4/4

  • Debt payable from cash flow

    no debt · LT debt ≤ 3× FCF

    pass
  • Cash cushion

    · cash ≥ 50% of LT debt

    pass
  • Leverage

    · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $30.3B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    · interest ≤ 15% of operating income

    na

Capital Allocation

3/4

  • Share count flat or shrinking

    -1.1% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    1% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    17% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    1 of 10 · buybacks in ≥ 5 of last 10 years

    fail

Valuation Discipline

4/4

  • FCF yield

    13.5% · ≥ 3%

    pass
  • Earnings multiple

    11.3 · P/E ≤ 25

    pass
  • Price asks less than history delivered

    -6.2% vs 23.0% · implied FCF growth ≤ historical FCF CAGR

    pass
  • Shareholder yield

    2.3% · dividends + buybacks ≥ 2% of market cap

    pass

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
202587,67111,30819.2317,54834817,2002,87113213830,323588
202475,3728,48014.4015,11928514,83467412215425,591588
202362,1093,9036.5810,64325210,39123412110020,277588
202249,6117221.186,8492926,55723422115,891587
202147,7023,3515.667,7622447,5183,74720218,232587
202042,6585,7059.666,9062246,6821,5517717,039588
201939,0223,9706.726,2623645,8981,64322713,673587
201831,9792,6154.426,2852666,0196557510,822587
201726,8391,5922.723,7571563,6013952759,285586
201623,4411,0311.762,7332152,5185191932267,957585
201520,8541,2682.152,2931312,1624042092242,7087,289589
201419,3911,2812.151,7261081,6188932711082,1656,929595
201318,1711,1651.931,9001401,7601762731,8616,190604
201217,0849021.481,6911281,5648541742,0636,007608
201115,7751,0161.591,498791,4192649982,4425,807637
201015,2161,0681.611,679651,6157642591,9586,049663
200914,5641,0581.571,487671,42001812,1775,749672
200812,840-70-0.101,549991,451981792,1764,215674
200714,6871,1831.651,7911361,6551,4071,5484,936719

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.