Lincoln National Corporation (LNC) Stock Valuation — PE Analysis
Insurance - Life · NYSE
Current Price
$42.15
PE Ratio (TTM)
3.5x
Intrinsic Value
$83.04
+49.2% margin of safety
COMPETITIVE MOAT
↑Established Brand Recognition
Lincoln Financial has built a recognized brand over decades in the life insurance sector. This brand equity fosters trust and can lead to customer loyalty and easier customer acquisition.
↑Scale and Investment Management Expertise
The company manages significant assets, benefiting from economies of scale in investment operations. This scale allows for potentially better investment returns and operational efficiencies.
↑Regulatory Hurdles for New Entrants
The life insurance industry is heavily regulated, creating high barriers to entry for new competitors. Existing players like Lincoln benefit from this established regulatory landscape.
INVESTMENT RISKS
↓Mortality and Longevity Risk
Lincoln's core business relies on accurately predicting mortality rates. Unexpected increases in claims due to pandemics or changes in life expectancy can significantly impact profitability.
↓Competitive Pricing Pressures
The life insurance market is highly competitive, leading to pressure on pricing. Competitors offering lower premiums can erode market share and profit margins.
↓Economic Downturns and Market Volatility
Recessions can lead to increased policy lapses and reduced demand for new insurance products. Significant market downturns can also negatively affect investment portfolio performance.
Base case
LNC base case PE valuation
At a current price of $42.15, the base case PE valuation puts LNC fair value near $83.04 per share. That figure assumes 3.8% yearly earnings growth, a target PE multiple of 3.45x, and a 10% discount rate.
Intrinsic Value
$83.04
Margin of safety
+49.2%
Expected annual return
+14.5%
Base case assumptions: 3.8% annual earnings growth, 3.45x target PE, 10% discount rate, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the LNC PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Lincoln National Corporation respond.
Open PE Calculator for LNCCompany Overview
Lincoln National Corporation (LNC) is a U.S.-based financial services company primarily involved in the insurance and retirement sectors. Operating through various subsidiaries, its operations are structured across four key divisions: Annuities, Retirement Plan Services, Life Insurance, and Group Protection. The Annuities division provides a range of annuity products, including fixed, variable, and indexed variable options. Its Retirement Plan Services segment caters to employers, focusing predominantly on the defined contribution market. This unit delivers a suite of retirement solutions, encompassing individual and group variable and fixed annuities, alongside mutual fund-based programs. Furthermore, it offers comprehensive plan administration services such as recordkeeping, compliance verification, participant education, and trust and custodial support. The Life Insurance segment delivers various life coverage options, from term insurance to universal life products, specifically single and survivorship universal life, variable universal life, and indexed universal life policies. It also makes available critical illness and long-term care riders to enhance these plans. Finally, the Group Protection segment focuses on providing non-medical group insurance benefits and services to the employer sector. Its offerings include short-term and long-term disability, statutory disability, paid family medical leave administration, and absence management. Additionally, it offers group term life, dental, vision, accident, and critical illness coverage, all available through both employee-contributed and employer-funded schemes. Lincoln National distributes its financial products and services through an extensive network of consultants, brokers, planners, agents, financial advisors, third-party administrators, and other intermediary partners. Established in 1905, Lincoln National Corporation maintains its headquarters in Radnor, Pennsylvania.
Financial Metrics — LNC PE Stock Valuation Data
PE Ratio (TTM)
3.5x
PEG Ratio
0.03
Earnings Yield
29.02%
ROE (TTM)
22.0%
Revenue/Share (TTM)
$100.39
Dividend Yield
4.27%
Debt/Equity
0.60x
Frequently Asked Questions
What is the PE ratio of LNC?
The trailing twelve-month PE ratio of LNC reflects how much investors pay per dollar of Lincoln National Corporation's earnings. This metric is most useful when compared to Insurance - Life peers and the company's own historical range.
Is LNC overvalued based on PE ratio?
LNC's PE of 3.5x combined with a PEG ratio of 0.03 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Insurance - Life, a DCF analysis may be more appropriate.
How do I value LNC stock using PE ratio?
To value Lincoln National Corporation using PE: (1) Compare the current PE (3.5x) against the Insurance - Life median to assess relative pricing, (2) check the PEG ratio (0.03) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of LNC?
LNC's PEG ratio is 0.03, calculated by dividing the PE ratio (3.5x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for LNC stock valuation?
PE ratio gives a quick relative read — how LNC is priced versus Insurance - Life peers. DCF provides an absolute value based on projected free cash flows. For LNC, with a strong ROE of 22.0%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See LNC DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Financial Services valuationsP/E and DCF value LNC with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.