MetLife, Inc. (MET) Stock Valuation — PE Analysis
Insurance - Life · NYSE
Current Price
$99.98
PE Ratio (TTM)
19.0x
Intrinsic Value
$124.2
+19.5% margin of safety
COMPETITIVE MOAT
↑Brand Recognition and Trust
MetLife benefits from decades of brand building, fostering customer trust essential in the life insurance sector. This established reputation translates into customer loyalty and a preference for its products.
↑Scale and Diversification
Its vast scale allows for operational efficiencies and a diversified product portfolio across various insurance and retirement solutions. This breadth mitigates risks associated with any single market segment.
↑Actuarial Expertise
Deep actuarial knowledge is crucial for accurate risk assessment and pricing in life insurance. MetLife's long-standing expertise in this area provides a significant competitive advantage.
INVESTMENT RISKS
↓Interest Rate Sensitivity
MetLife's profitability is significantly influenced by interest rate movements. Prolonged periods of low rates can compress investment income, while rapid increases can lead to unrealized losses on its bond portfolio.
↓Mortality and Longevity Risk
Unexpected shifts in mortality rates or increased longevity beyond actuarial assumptions can lead to higher-than-expected claims payouts. This risk is inherent to the life insurance business.
↓Economic Downturns
Recessions can lead to increased policy lapses, reduced demand for new insurance products, and potential credit defaults in its investment portfolio, impacting MetLife's financial performance.
Base case
MET base case PE valuation
A base case PE valuation for MET estimates a fair value of about $124.2 per share, against a current price of $99.98. The model assumes 9.3% annual earnings growth, a 17.98x target PE multiple, and a 10% discount rate.
Intrinsic Value
$124.2
Margin of safety
+19.5%
Expected annual return
+4.4%
Base case assumptions: 9.3% annual earnings growth, 17.98x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-27.
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 MET PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for MetLife, Inc. respond.
Open PE Calculator for METCompany Overview
MetLife, Inc. operates as a leading global financial services entity, delivering an extensive array of services encompassing insurance, annuities, employee benefits, and asset management. The company manages its operations through five primary divisions: the U.S., Asia, Latin America, Europe, the Middle East and Africa (EMEA), and MetLife Holdings. Its broad insurance offerings include life, dental, group short-term and long-term disability, individual disability, pet, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans. MetLife also supports employers with administrative services-only (ASO) arrangements. Furthermore, it provides sophisticated financial instruments such as general and separate account contracts, synthetic guaranteed interest contracts, and private floating rate funding agreements. The company facilitates pension risk transfers, offers institutional income annuities, structures settlements, and delivers capital markets investment products. Specialized life insurance products and funding agreements are also available for post-retirement benefits, alongside company, bank, or trust-owned life insurance used to finance non-qualified executive benefit programs. In addition, MetLife offers a variety of annuity options including fixed, indexed-linked, and variable, alongside pension and regular savings products. Its life insurance portfolio features whole life, term life, endowments, universal and variable life, and group life policies. The company also provides longevity reinsurance solutions, credit insurance products, and protection for long-term healthcare services. MetLife, Inc. was founded in 1863 and is headquartered in New York City.
Financial Metrics — MET PE Stock Valuation Data
PE Ratio (TTM)
19.0x
PEG Ratio
n/m
Earnings Yield
5.56%
ROE (TTM)
12.9%
Revenue/Share (TTM)
$120.62
Dividend Yield
2.32%
Debt/Equity
0.78x
Frequently Asked Questions
What is the PE ratio of MET?
The trailing twelve-month PE ratio of MET reflects how much investors pay per dollar of MetLife, Inc.'s earnings. This metric is most useful when compared to Insurance - Life peers and the company's own historical range.
Is MET overvalued based on PE ratio?
MET's PE of 19.0x combined with a PEG ratio of -1.64 provides a growth-adjusted perspective. MET 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 MET stock using PE ratio?
To value MetLife, Inc. using PE: (1) Compare the current PE (19.0x) against the Insurance - Life median to assess relative pricing, (2) check the PEG ratio (-1.64) 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 MET?
MET's PEG ratio is -1.64, calculated by dividing the PE ratio (19.0x) by the expected earnings growth rate. Because MET 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 MET stock valuation?
PE ratio gives a quick relative read — how MET is priced versus Insurance - Life peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. 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 MET 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 MET with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-27. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.