Aflac Incorporated (AFL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+28.0%

$158.91

vs $124.14 price

Levered DCF

$74.90

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

2.42

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	16.07×	10.69×	10.56×	10.34×	9.1×	6.65×	11.89×	12.02×
P/B	1.98×	2.21×	2.24×	2.27×	1.18×	0.95×	1.36×	1.49×
P/S	3.35×	3.02×	2.61×	2.38×	1.83×	1.43×	1.77×	1.62×
EV / EBITDA	10.9×	9.19×	9.93×	10.1×	8.11×	8.29×	9.21×	9.16×
Gross margin	38.9%	35.6%	100.0%	100.0%	100.0%	100.0%	100.0%	100.0%
Operating margin	26.6%	33.5%	27.9%	25.4%	24.2%	18.7%	20.0%	18.3%
Net margin	20.9%	28.5%	24.7%	23.1%	19.6%	21.5%	14.9%	13.5%
Current ratio	12.39×	0×	0×	0×	0×	0×	0×	0×
Debt / equity	0.29×	0.29×	0.33×	0.37×	0.24×	0.24×	0.23×	0.25×
Interest coverage	21.1×	32.57×	26.98×	21.54×	21.88×	17.19×	19.5×	17.94×
Dividend yield	2.0%	1.9%	2.0%	2.1%	2.2%	2.4%	2.0%	2.3%
Payout ratio	32.9%	20.0%	20.7%	22.2%	20.2%	16.1%	23.3%	27.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.4%	20.9%	21.2%	21.9%	12.7%	14.2%	11.4%	12.4%
Return on invested capital	3.4%	0.0%	0.0%	0.0%	0.0%	2.5%	2.2%	2.1%
Return on assets	3.1%	4.6%	3.7%	3.4%	2.7%	2.9%	2.2%	2.1%
Free cash flow yield	4.4%	4.7%	6.5%	8.5%	12.8%	18.8%	13.9%	17.2%
Earnings yield	6.2%	9.4%	9.5%	9.7%	10.8%	15.1%	8.4%	8.3%
Enterprise value	$60.6B	$59B	$52.2B	$49.2B	$42.2B	$34.5B	$40.9B	$36.5B
Net debt / EBITDA	0.39×	0.2×	0.58×	0.72×	0.56×	0.66×	0.38×	0.36×
Cash conversion cycle (days)	33	15	16	12	11	13	14	14