Insurance - Life · NYSE
Current Price
$36.98
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Lincoln National Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Lincoln National Corporation, through its subsidiaries, operates multiple insurance and retirement businesses in the United States. It operates through four segments: Annuities, Retirement Plan Services, Life Insurance, and Group Protection. The Annuities segment offers fixed, variable, and indexed variable annuities. The Retirement Plan Services segment provides employers with retirement plan products and services primarily in the defined contribution retirement plan marketplace. This segment offers individual and group variable annuities, group fixed annuities, and mutual fund-based programs; and a range of plan services, including plan recordkeeping, compliance testing, participant education, and trust and custodial services. The Life Insurance segment provides life insurance products, including term insurance, such as single and survivorship versions of universal life insurance; variable universal life insurance; indexed universal life insurance products; and critical illness and long-term care riders. The Group Protection segment offers group non-medical insurance products comprising short and long-term disability, statutory disability and paid family medical leave administration and absence management services, term life, dental, vision and accident, and critical illness benefits and services to the employer marketplace through various forms of employee-paid and employer-paid plans. The company distributes its products through consultants, brokers, planners, agents, financial advisors, third-party administrators, and other intermediaries. Lincoln National Corporation was founded in 1905 and is based in Radnor, Pennsylvania.
ROIC (TTM)
0.3%
ROE (TTM)
12.0%
FCF Yield
-2.38%
Based on trailing twelve-month data, LNC shows a free cash flow per share of N/A and a ROIC of 0.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of -2.38% are important context metrics when evaluating LNC's stock valuation relative to peers.
The intrinsic value of LNC 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 LNC is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $36.98. 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 Lincoln National Corporation: (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 LNC'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 Lincoln National Corporation, 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. LNC's ROIC of 0.3% 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 LNC, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
