Insurance - Life · NYSE
Current Price
$78.96
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on MetLife, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa; and MetLife Holdings. The company offers life, dental, group short-and long-term disability, individual disability, pet insurance, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and general and separate account, and synthetic guaranteed interest contracts, as well as private floating rate funding agreements. It also provides pension risk transfers, institutional income annuities, structured settlements, and capital markets investment products; and other products and services, such as life insurance products and funding agreements for funding postretirement benefits, as well as company, bank, or trust-owned life insurance used to finance nonqualified benefit programs for executives. In addition, it provides fixed, indexed-linked, and variable annuities; and pension products; regular savings products; whole and term life, endowments, universal and variable life, and group life products; longevity reinsurance solutions; credit insurance products; and protection against long-term health care services. MetLife, Inc. was founded in 1863 and is headquartered in New York, New York.
ROIC (TTM)
0.7%
ROE (TTM)
12.0%
FCF Yield
35.16%
Based on trailing twelve-month data, MET shows a free cash flow per share of N/A and a ROIC of 0.7%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 35.16% are important context metrics when evaluating MET's stock valuation relative to peers.
The intrinsic value of MET 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 MET is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $78.96. 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 MetLife, Inc.: (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 MET'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 MetLife, Inc., 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. MET's ROIC of 0.7% 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 MET, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
