Intrinsic value of AFLAC - AFL

Previous Close

$77.60

  Intrinsic Value

premium content

  Rating & Target

premium content

  Value-price divergence*

premium content

Previous close

$77.60

 
Intrinsic value premium content
 
Up/down potential premium content
 
Rating premium content
 
Value-price divergence* premium content

Premium access subscription - $499/yr

please register and log in before paying
Our model is not good at valuating stocks of financial companies, such as AFL.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of AFL stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 31.2

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  7.69
  12.00
  11.30
  10.67
  10.10
  9.59
  9.13
  8.72
  8.35
  8.01
  7.71
  7.44
  7.20
  6.98
  6.78
  6.60
  6.44
  6.30
  6.17
  6.05
  5.95
  5.85
  5.77
  5.69
  5.62
  5.56
  5.50
  5.45
  5.41
  5.37
  5.33
Revenue, $m
  0
  25,359
  28,225
  31,236
  34,392
  37,691
  41,134
  44,720
  48,454
  52,336
  56,373
  60,567
  64,926
  69,456
  74,165
  79,060
  84,153
  89,452
  94,969
  100,715
  106,703
  112,947
  119,459
  126,255
  133,352
  140,764
  148,509
  156,606
  165,074
  173,933
  183,203
Variable operating expenses, $m
 
  20,363
  22,664
  25,083
  27,617
  30,266
  33,030
  35,911
  38,908
  42,026
  45,267
  48,635
  52,136
  55,773
  59,554
  63,486
  67,575
  71,830
  76,260
  80,874
  85,683
  90,696
  95,926
  101,383
  107,081
  113,033
  119,253
  125,755
  132,555
  139,668
  147,112
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  18,307
  20,363
  22,664
  25,083
  27,617
  30,266
  33,030
  35,911
  38,908
  42,026
  45,267
  48,635
  52,136
  55,773
  59,554
  63,486
  67,575
  71,830
  76,260
  80,874
  85,683
  90,696
  95,926
  101,383
  107,081
  113,033
  119,253
  125,755
  132,555
  139,668
  147,112
Operating income, $m
  4,335
  4,996
  5,560
  6,154
  6,775
  7,425
  8,103
  8,810
  9,545
  10,310
  11,105
  11,932
  12,790
  13,683
  14,610
  15,575
  16,578
  17,622
  18,709
  19,841
  21,021
  22,250
  23,533
  24,872
  26,270
  27,730
  29,256
  30,851
  32,520
  34,265
  36,091
EBITDA, $m
  4,335
  5,044
  5,614
  6,213
  6,841
  7,497
  8,181
  8,895
  9,637
  10,410
  11,213
  12,047
  12,914
  13,815
  14,751
  15,725
  16,738
  17,792
  18,889
  20,032
  21,223
  22,465
  23,760
  25,112
  26,524
  27,998
  29,538
  31,149
  32,833
  34,595
  36,439
Interest expense (income), $m
  211
  220
  768
  1,337
  1,934
  2,560
  3,215
  3,898
  4,610
  5,350
  6,121
  6,921
  7,754
  8,618
  9,517
  10,451
  11,423
  12,433
  13,484
  14,579
  15,719
  16,907
  18,146
  19,438
  20,786
  22,194
  23,665
  25,202
  26,808
  28,488
  30,246
Earnings before tax, $m
  4,067
  4,776
  4,792
  4,817
  4,841
  4,865
  4,888
  4,912
  4,936
  4,960
  4,985
  5,010
  5,037
  5,064
  5,093
  5,124
  5,155
  5,189
  5,224
  5,262
  5,301
  5,343
  5,388
  5,434
  5,484
  5,536
  5,592
  5,650
  5,712
  5,777
  5,845
Tax expense, $m
  1,408
  1,290
  1,294
  1,301
  1,307
  1,313
  1,320
  1,326
  1,333
  1,339
  1,346
  1,353
  1,360
  1,367
  1,375
  1,383
  1,392
  1,401
  1,411
  1,421
  1,431
  1,443
  1,455
  1,467
  1,481
  1,495
  1,510
  1,525
  1,542
  1,560
  1,578
Net income, $m
  2,659
  3,486
  3,498
  3,516
  3,534
  3,551
  3,569
  3,586
  3,603
  3,621
  3,639
  3,658
  3,677
  3,697
  3,718
  3,740
  3,763
  3,788
  3,814
  3,841
  3,870
  3,901
  3,933
  3,967
  4,003
  4,041
  4,082
  4,124
  4,169
  4,217
  4,267

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  129,819
  145,742
  162,210
  179,518
  197,655
  216,615
  236,400
  257,014
  278,470
  300,784
  323,981
  348,087
  373,138
  399,172
  426,233
  454,370
  483,637
  514,093
  545,799
  578,823
  613,238
  649,118
  686,546
  725,606
  766,388
  808,987
  853,501
  900,037
  948,702
  999,613
  1,052,889
Adjusted assets (=assets-cash), $m
  129,819
  145,742
  162,210
  179,518
  197,655
  216,615
  236,400
  257,014
  278,470
  300,784
  323,981
  348,087
  373,138
  399,172
  426,233
  454,370
  483,637
  514,093
  545,799
  578,823
  613,238
  649,118
  686,546
  725,606
  766,388
  808,987
  853,501
  900,037
  948,702
  999,613
  1,052,889
Revenue / Adjusted assets
  0.000
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
  0.174
Average production assets, $m
  430
  482
  536
  593
  653
  716
  782
  850
  921
  994
  1,071
  1,151
  1,234
  1,320
  1,409
  1,502
  1,599
  1,700
  1,804
  1,914
  2,027
  2,146
  2,270
  2,399
  2,534
  2,675
  2,822
  2,976
  3,136
  3,305
  3,481
Working capital, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total debt, $m
  5,360
  18,737
  32,604
  47,177
  62,449
  78,413
  95,072
  112,429
  130,495
  149,283
  168,815
  189,113
  210,205
  232,126
  254,911
  278,603
  303,246
  328,889
  355,585
  383,392
  412,369
  442,581
  474,095
  506,983
  541,322
  577,190
  614,671
  653,854
  694,830
  737,697
  782,556
Total liabilities, $m
  109,337
  122,714
  136,581
  151,154
  166,426
  182,390
  199,049
  216,406
  234,472
  253,260
  272,792
  293,090
  314,182
  336,103
  358,888
  382,580
  407,223
  432,866
  459,562
  487,369
  516,346
  546,558
  578,072
  610,960
  645,299
  681,167
  718,648
  757,831
  798,807
  841,674
  886,533
Total equity, $m
  20,482
  23,027
  25,629
  28,364
  31,229
  34,225
  37,351
  40,608
  43,998
  47,524
  51,189
  54,998
  58,956
  63,069
  67,345
  71,790
  76,415
  81,227
  86,236
  91,454
  96,892
  102,561
  108,474
  114,646
  121,089
  127,820
  134,853
  142,206
  149,895
  157,939
  166,356
Total liabilities and equity, $m
  129,819
  145,741
  162,210
  179,518
  197,655
  216,615
  236,400
  257,014
  278,470
  300,784
  323,981
  348,088
  373,138
  399,172
  426,233
  454,370
  483,638
  514,093
  545,798
  578,823
  613,238
  649,119
  686,546
  725,606
  766,388
  808,987
  853,501
  900,037
  948,702
  999,613
  1,052,889
Debt-to-equity ratio
  0.262
  0.810
  1.270
  1.660
  2.000
  2.290
  2.550
  2.770
  2.970
  3.140
  3.300
  3.440
  3.570
  3.680
  3.790
  3.880
  3.970
  4.050
  4.120
  4.190
  4.260
  4.320
  4.370
  4.420
  4.470
  4.520
  4.560
  4.600
  4.640
  4.670
  4.700
Adjusted equity ratio
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158
  0.158

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,659
  3,486
  3,498
  3,516
  3,534
  3,551
  3,569
  3,586
  3,603
  3,621
  3,639
  3,658
  3,677
  3,697
  3,718
  3,740
  3,763
  3,788
  3,814
  3,841
  3,870
  3,901
  3,933
  3,967
  4,003
  4,041
  4,082
  4,124
  4,169
  4,217
  4,267
Depreciation, amort., depletion, $m
  0
  48
  54
  59
  65
  72
  78
  85
  92
  99
  107
  115
  123
  132
  141
  150
  160
  170
  180
  191
  203
  215
  227
  240
  253
  267
  282
  298
  314
  330
  348
Funds from operations, $m
  9,192
  3,535
  3,552
  3,576
  3,599
  3,623
  3,647
  3,671
  3,695
  3,720
  3,746
  3,773
  3,800
  3,829
  3,859
  3,890
  3,923
  3,958
  3,994
  4,033
  4,073
  4,115
  4,160
  4,207
  4,257
  4,309
  4,364
  4,422
  4,483
  4,547
  4,615
Change in working capital, $m
  3,205
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from operations, $m
  5,987
  3,538
  3,552
  3,576
  3,599
  3,623
  3,647
  3,671
  3,695
  3,720
  3,746
  3,773
  3,800
  3,829
  3,859
  3,890
  3,923
  3,958
  3,994
  4,033
  4,073
  4,115
  4,160
  4,207
  4,257
  4,309
  4,364
  4,422
  4,483
  4,547
  4,615
Maintenance CAPEX, $m
  0
  -43
  -48
  -54
  -59
  -65
  -72
  -78
  -85
  -92
  -99
  -107
  -115
  -123
  -132
  -141
  -150
  -160
  -170
  -180
  -191
  -203
  -215
  -227
  -240
  -253
  -267
  -282
  -298
  -314
  -330
New CAPEX, $m
  0
  -52
  -54
  -57
  -60
  -63
  -65
  -68
  -71
  -74
  -77
  -80
  -83
  -86
  -89
  -93
  -97
  -101
  -105
  -109
  -114
  -119
  -124
  -129
  -135
  -141
  -147
  -154
  -161
  -168
  -176
Cash from investing activities, $m
  -3,855
  -95
  -102
  -111
  -119
  -128
  -137
  -146
  -156
  -166
  -176
  -187
  -198
  -209
  -221
  -234
  -247
  -261
  -275
  -289
  -305
  -322
  -339
  -356
  -375
  -394
  -414
  -436
  -459
  -482
  -506
Free cash flow, $m
  2,132
  3,443
  3,449
  3,465
  3,480
  3,495
  3,510
  3,524
  3,539
  3,554
  3,570
  3,586
  3,602
  3,620
  3,638
  3,656
  3,676
  3,697
  3,720
  3,743
  3,768
  3,794
  3,822
  3,851
  3,882
  3,915
  3,949
  3,986
  4,025
  4,066
  4,109
Issuance/(repayment) of debt, $m
  376
  13,377
  13,867
  14,573
  15,271
  15,965
  16,658
  17,357
  18,066
  18,789
  19,531
  20,298
  21,093
  21,921
  22,785
  23,692
  24,643
  25,643
  26,697
  27,807
  28,977
  30,212
  31,514
  32,888
  34,338
  35,868
  37,481
  39,183
  40,976
  42,867
  44,859
Issuance/(repurchase) of shares, $m
  -1,376
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -961
  13,377
  13,867
  14,573
  15,271
  15,965
  16,658
  17,357
  18,066
  18,789
  19,531
  20,298
  21,093
  21,921
  22,785
  23,692
  24,643
  25,643
  26,697
  27,807
  28,977
  30,212
  31,514
  32,888
  34,338
  35,868
  37,481
  39,183
  40,976
  42,867
  44,859
Total cash flow (excl. dividends), $m
  1,167
  16,820
  17,316
  18,038
  18,751
  19,460
  20,168
  20,882
  21,605
  22,343
  23,101
  23,884
  24,695
  25,540
  26,423
  27,348
  28,319
  29,341
  30,416
  31,549
  32,745
  34,005
  35,336
  36,739
  38,220
  39,783
  41,431
  43,169
  45,001
  46,932
  48,967
Retained Cash Flow (-), $m
  -2,774
  -2,545
  -2,602
  -2,735
  -2,866
  -2,996
  -3,126
  -3,257
  -3,390
  -3,526
  -3,665
  -3,809
  -3,958
  -4,113
  -4,276
  -4,446
  -4,624
  -4,812
  -5,010
  -5,218
  -5,437
  -5,669
  -5,914
  -6,171
  -6,444
  -6,731
  -7,033
  -7,353
  -7,689
  -8,044
  -8,418
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  14,275
  14,714
  15,303
  15,885
  16,464
  17,042
  17,625
  18,215
  18,818
  19,436
  20,075
  20,737
  21,427
  22,147
  22,902
  23,695
  24,529
  25,407
  26,332
  27,307
  28,336
  29,422
  30,568
  31,777
  33,052
  34,397
  35,816
  37,312
  38,888
  40,550
Discount rate, %
 
  4.50
  4.73
  4.96
  5.21
  5.47
  5.74
  6.03
  6.33
  6.65
  6.98
  7.33
  7.70
  8.08
  8.49
  8.91
  9.36
  9.82
  10.31
  10.83
  11.37
  11.94
  12.54
  13.16
  13.82
  14.51
  15.24
  16.00
  16.80
  17.64
  18.52
PV of cash for distribution, $m
 
  13,660
  13,416
  13,234
  12,965
  12,615
  12,190
  11,698
  11,146
  10,543
  9,898
  9,220
  8,518
  7,802
  7,081
  6,366
  5,665
  4,988
  4,341
  3,733
  3,168
  2,653
  2,189
  1,778
  1,421
  1,116
  861
  651
  482
  350
  248
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Aflac Incorporated, through its subsidiary, American Family Life Assurance Company of Columbus, provides supplemental health and life insurance products. It operates through two segments, Aflac Japan and Aflac U.S. The Aflac Japan segment offers various voluntary supplemental insurance products, including cancer plans, general medical indemnity plans, medical/sickness riders, care plans, living benefit life plans, ordinary life insurance plans, and annuities in Japan. The Aflac U.S. segment provides products designed to protect individuals from depletion of assets, which comprise accident, cancer, critical illness/critical care, hospital intensive care, hospital indemnity, fixed-benefit dental, and vision care plans; and loss-of-income products, such as life and short-term disability plans in the United States (U.S.). The company sells its products through sales associates and brokers, independent corporate agencies, individual agencies, and affiliated corporate agencies. Aflac Incorporated was founded in 1955 and is headquartered in Columbus, Georgia.

FINANCIAL RATIOS  of  AFLAC (AFL)

Valuation Ratios
P/E Ratio 11.8
Price to Sales 1.4
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 5.3
Price to Free Cash Flow 5.3
Growth Rates
Sales Growth Rate 7.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate NaN%
Cap. Spend. - 3 Yr. Gr. Rate NaN%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 26.2%
Total Debt to Equity 26.2%
Interest Coverage 20
Management Effectiveness
Return On Assets 2.3%
Ret/ On Assets - 3 Yr. Avg. 2.4%
Return On Total Capital 11%
Ret/ On T. Cap. - 3 Yr. Avg. 11.9%
Return On Equity 13.9%
Return On Equity - 3 Yr. Avg. 15.3%
Asset Turnover 0.2
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 18.9%
EBITDA Margin - 3 Yr. Avg. 19.7%
Operating Margin 19.1%
Oper. Margin - 3 Yr. Avg. 20%
Pre-Tax Margin 18%
Pre-Tax Margin - 3 Yr. Avg. 18.7%
Net Profit Margin 11.7%
Net Profit Margin - 3 Yr. Avg. 12.3%
Effective Tax Rate 34.6%
Eff/ Tax Rate - 3 Yr. Avg. 34.4%
Payout Ratio 24.7%

AFL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the AFL stock intrinsic value calculation we used $22642 million for the last fiscal year's total revenue generated by AFLAC. The default revenue input number comes from 2016 income statement of AFLAC. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our AFL stock valuation model: a) initial revenue growth rate of 12% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.5%, whose default value for AFL is calculated based on our internal credit rating of AFLAC, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of AFLAC.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of AFL stock the variable cost ratio is equal to 80.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for AFL stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.1% for AFLAC.

Corporate tax rate of 27% is the nominal tax rate for AFLAC. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the AFL stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for AFL are equal to 1.9%.

Life of production assets of 10 years is the average useful life of capital assets used in AFLAC operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for AFL is equal to 0%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $20482 million for AFLAC - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 401.48 million for AFLAC is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of AFLAC at the current share price and the inputted number of shares is $31.2 billion.


Premium access subscription - $499/yr

please register and log in before paying
RELATED COMPANIES Price Int.Val. Rating
CNO CNO Financial 19.84 prem.  prem.
UNM Unum Group 45.11 prem.  prem.
PFG Principal Fina 62.58 prem.  prem.
MFC Manulife Finan 17.81 prem.  prem.
AIZ Assurant 101.25 prem.  prem.
PRI Primerica 74.70 prem.  prem.
ANTM Anthem 190.17 prem.  prem.
CI Cigna 169.61 prem.  prem.

COMPANY NEWS

▶ Aflac CEO to Present at Harvard Business School   [Jun-22-17 08:00AM  PR Newswire]
▶ ETFs with exposure to Aflac, Inc. : June 12, 2017   [Jun-12-17 01:47PM  Capital Cube]
▶ Aflac's No. 4 exec resigning to join private equity firm   [Jun-11-17 09:05AM  American City Business Journals]
▶ Aflac Moves Up to No. 126 on 2017 Fortune 500   [Jun-09-17 08:00AM  PR Newswire]
▶ Paul S. Amos, II, Resigns from Aflac   [Jun-08-17 04:30PM  PR Newswire]
▶ 6 Things You Didn't Know About Aflac   [Jun-07-17 10:44AM  Motley Fool]
▶ ETFs with exposure to Aflac, Inc. : May 31, 2017   [May-31-17 12:19PM  Capital Cube]
▶ Aflac CFO Calls Infrastructure Debt a 'Great Asset'   [May-15-17 03:36PM  Bloomberg Video]
▶ [$$] The Roundup   [May-01-17 10:10AM  The Wall Street Journal]
▶ Aflac Holds Its Own Despite Falling Revenue, Earnings   [Apr-27-17 07:06PM  Motley Fool]
▶ Aflac beats 1Q profit forecasts   [04:40PM  Associated Press]
▶ 3 Great Income Stocks That Could Double Their Dividends   [Apr-21-17 02:25PM  Motley Fool]
▶ Multiple Stocks Reach 52-Week Highs   [Apr-18-17 04:42PM  GuruFocus.com]
▶ ETFs with exposure to Aflac, Inc. : April 5, 2017   [Apr-05-17 04:15PM  Capital Cube]
▶ Aflac picks Chicago-based NXT Capital to manage new $500 million portfolio   [Apr-04-17 03:35PM  American City Business Journals]
▶ Aflac Announces Investment Partnership with NXT Capital   [Mar-31-17 08:00AM  PR Newswire]
▶ Aflac Named a TAG Top 40 Innovative Technology Company   [Mar-23-17 08:00AM  PR Newswire]
▶ What You Need to Know About the March Rate Hike   [Mar-20-17 04:13PM  GuruFocus.com]
▶ 3 Aflac Executives Honored by BLACK ENTERPRISE Magazine   [Mar-10-17 08:00AM  PR Newswire]
▶ Aflac Named to Fortune's Best Companies to Work For List   [Mar-09-17 08:00AM  PR Newswire]
▶ Fortune Names Aflac to Most Admired Companies List   [Feb-21-17 08:00AM  PR Newswire]
▶ 7 Dividend Growth Stocks On Sale   [11:07AM  at Insider Monkey]
▶ Aflac to air its first Super Bowl ad (Video)   [02:54PM  at bizjournals.com]
▶ [$$] Aflac Revenue Rises   [05:17PM  at The Wall Street Journal]
Stock chart of AFL Financial statements of AFL Annual reports of AFL
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

FREE DOWNLOAD
Follow us on:   twitter   twitter   twitter   twitter

VALUATION THEORY       ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2017. All rigths reserved.