Aflac Incorporated (AFL) Fair Value & PE Analysis
Insurance - Life · NYSE
Current Price
$128.67
PE Ratio (TTM)
14.6x
Intrinsic Value
$119.41
-7.8% margin of safety
What Is Aflac Incorporated's Fair Value?
As of 2026-07-29, applying a 14.0x earnings multiple to Aflac Incorporated's (AFL) earnings per share of $9.04 yields a fair value estimate of $119.41 per share, versus a market price of $128.67.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $93.24 to $149.87. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · AFL intrinsic value (DCF view)
Is Aflac Incorporated (AFL) Overvalued?
At $128.67, AFL trades about 7.8% above its PE-based fair value estimate, a modest premium over the applied earnings multiple. Check whether earnings growth justifies the price.
COMPETITIVE MOAT
↑Strong Brand Recognition
Aflac's iconic duck mascot and consistent advertising have built significant brand awareness. This recognition fosters trust and makes it a go-to choice for supplemental insurance.
↑Established Distribution Network
The company has a deep and wide network of agents and brokers. This extensive reach allows them to effectively market and sell their specialized insurance products to a broad customer base.
↑Customer Loyalty and Inertia
Once enrolled, customers often remain with Aflac due to the simplicity of payroll deductions and the perceived value of their policies. Switching costs, though low, are a barrier.
INVESTMENT RISKS
↓Economic Downturn Impact
In a recession, individuals may cut discretionary spending, including supplemental insurance. This could lead to policy lapses and reduced new business for Aflac.
↓Interest Rate Sensitivity
Aflac's investment income is sensitive to interest rate fluctuations. Prolonged periods of low rates can negatively affect profitability and investment returns.
↓Technological Disruption
While not a primary focus, advancements in insurtech could offer more streamlined or personalized solutions. Aflac needs to adapt to maintain its competitive edge.
Base case
AFL base case PE valuation
Intrinsic Value
$119.41
Margin of safety
-7.8%
Expected annual return
-1.5%
Base case assumptions: 1.3% annual earnings growth, 14x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
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 AFL PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Aflac Incorporated respond.
Open PE Calculator for AFLCompany Overview
Aflac Incorporated, operating through its various subsidiary companies, focuses on delivering supplementary health and life insurance policies. The firm's business activities are structured into two primary divisions: Aflac Japan and Aflac U.S. In Japan, the company offers a diverse range of insurance products, including coverage for cancer, medical expenses, income support for nursing care, and the distinct GIFT plan. This segment also provides traditional whole and term life insurance, along with savings-oriented plans like WAYS and child endowment products. Meanwhile, the Aflac U.S. division caters to the American market, furnishing policies that address cancer, accidents, short-term disability, critical illness, and hospital stays. Additionally, it provides dental, vision, long-term care, disability, and both term and whole life insurance options. Aflac distributes its comprehensive suite of products through multiple channels, which include dedicated sales associates, independent brokers, various corporate and individual agencies, and affiliated agencies. Established in 1955, the company maintains its corporate headquarters in Columbus, Georgia.
Financial Metrics — AFL PE Stock Valuation Data
PE Ratio (TTM)
14.6x
PEG Ratio
0.40
Earnings Yield
7.02%
ROE (TTM)
16.1%
Revenue/Share (TTM)
$35.52
Dividend Yield
1.85%
Debt/Equity
0.26x
Frequently Asked Questions
What is the PE ratio of AFL?
The trailing twelve-month PE ratio of AFL reflects how much investors pay per dollar of Aflac Incorporated's earnings. This metric is most useful when compared to Insurance - Life peers and the company's own historical range.
Is AFL overvalued based on PE ratio?
AFL's PE of 14.6x combined with a PEG ratio of 0.40 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 AFL stock using PE ratio?
To value Aflac Incorporated using PE: (1) Compare the current PE (14.6x) against the Insurance - Life median to assess relative pricing, (2) check the PEG ratio (0.40) 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 AFL?
AFL's PEG ratio is 0.40, calculated by dividing the PE ratio (14.6x) 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 AFL stock valuation?
PE ratio gives a quick relative read — how AFL is priced versus Insurance - Life peers. DCF provides an absolute value based on projected free cash flows. For AFL, with a strong ROE of 16.1%, 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 AFL 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 AFL with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.