Insurance - Life · NYSE
Current Price
$116.21
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Aflac Incorporated with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Aflac Incorporated, through its subsidiaries, provides supplemental health and life insurance products. It operates through two segments, Aflac Japan and Aflac U.S. The Aflac Japan segment offers cancer, medical, nursing care income support, GIFT, and whole and term life insurance products, as well as WAYS and child endowment plans under saving type insurance products in Japan. The Aflac U.S. segment provides cancer, accident, short-term disability, critical illness, hospital indemnity, dental, vision, long-term care and disability, and term and whole life insurance products in the United States. It sells its products through sales associates, brokers, independent corporate agencies, individual agencies, and affiliated corporate agencies. The company was founded in 1955 and is based in Columbus, Georgia.
ROIC (TTM)
3.2%
ROE (TTM)
13.1%
FCF Yield
4.27%
Based on trailing twelve-month data, AFL shows a free cash flow per share of N/A and a ROIC of 3.2%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 4.27% are important context metrics when evaluating AFL's stock valuation relative to peers.
The intrinsic value of AFL 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 AFL is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $116.21. 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 Aflac Incorporated: (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 - Life industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting AFL'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 Aflac Incorporated, this means projecting how much free cash flow the Insurance - Life will produce over the next 5-10 years, then discounting those amounts to today's dollars. AFL's ROIC of 3.2% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For AFL, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
