Lincoln National Corporation (LNC) Stock Valuation — PE Analysis
Insurance - Life · NYSE
Current Price
$44.40
PE Ratio (TTM)
8.6x
Intrinsic Value
$88.14
+49.6% margin of safety
COMPETITIVE MOAT
↑Brand Recognition and Trust
Lincoln Financial has established a recognized brand in the life insurance and retirement planning sectors. This builds trust, encouraging customer loyalty and new business acquisition.
↑Scale and Diversified Product Offerings
The company's substantial scale allows for operational efficiencies and a broad range of insurance and annuity products. This diversification caters to various customer needs and market segments.
↑Actuarial Expertise and Data Analytics
Deep actuarial knowledge and sophisticated data analytics are crucial for pricing risk accurately and managing liabilities. This expertise underpins profitability and competitive product design.
INVESTMENT RISKS
↓Interest Rate Sensitivity
Lincoln's annuity business is sensitive to interest rate fluctuations, which can affect profitability and the value of its investment portfolio.
↓Leverage and Capital Management
While capital strength is noted, the company's leverage remains a key risk. High leverage can amplify losses and limit financial flexibility during downturns.
↓Economic Downturns and Mortality Trends
Recessions can impact sales and investment returns, while unexpected mortality trends could strain life insurance reserves and profitability.
Base case
LNC base case PE valuation
At a current price of $44.4, the base case PE valuation puts LNC fair value near $88.14 per share. That figure assumes 3.5% yearly earnings growth, a target PE multiple of 4x, and a 10% discount rate.
Intrinsic Value
$88.14
Margin of safety
+49.6%
Expected annual return
+14.7%
Base case assumptions: 3.5% annual earnings growth, 4x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-30.
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)
8.6x
PEG Ratio
n/m
Earnings Yield
27.82%
ROE (TTM)
22.9%
Revenue/Share (TTM)
$101.37
Dividend Yield
4.05%
Debt/Equity
0.62x
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 8.6x combined with a PEG ratio of -0.62 provides a growth-adjusted perspective. LNC has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. 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 (8.6x) against the Insurance - Life median to assess relative pricing, (2) check the PEG ratio (-0.62) 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 -0.62, calculated by dividing the PE ratio (8.6x) by the expected earnings growth rate. Because LNC has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. 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 22.9%, 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 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.