AFL
Aflac Inc
Price:  
102.45 
USD
Volume:  
1,700,385
United States | Insurance

Aflac Fair Value

-22.9 %
Upside

What is the fair value of Aflac?

As of 2025-05-23, the Fair Value of Aflac Inc (AFL) is 78.99 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 102.45 USD, the upside of Aflac Inc is -22.9%.

Is Aflac a good investment?

With the market price of 102.45 USD and our fair value calculation, Aflac Inc (AFL) is not a good investment. Investing in Aflac stocks now will result in a potential loss of 22.9%.

102.45 USD
Stock Price
78.99 USD
Fair Price
FAIR VALUE CALCULATION

Aflac Fair Value

Peter Lynch's formula is:

Aflac Fair Value
= Earnings Growth Rate x TTM EPS
Aflac Fair Value
= 12 x 6.58
Aflac Fair Value
= 78.99

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income4,7784,3254,2014,6595,4434,681
YoY growth44.6%-9.5%-2.9%10.9%16.8%12%

Aflac Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
Sun Life Financial Inc50,2335.527.63-68.4%
Principal Financial Group Inc17,4017174.58125.7%
Athene Holding Ltd15,958266.61,332.871499.5%
Unum Group13,9998.9123.5855.2%
Globe Life Inc9,95212.9109.81-8.2%
iA Financial Corporation Inc13,05810.3254.5281.8%
Lincoln National Corp5,5777.8195.08497.1%
Brighthouse Financial Inc3,39010.653.13-9.6%
Genworth Financial Inc2,8030.512.8690.9%

Aflac Fair Value - Key Data

Market Cap (mil)55,918
P/E15.6x
Forward P/E9.8x
EPS6.58
Avg earnings growth rate12%
TTM earnings3,593

Aflac Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.