Corebridge Financial (CRBG): Evaluating Valuation After $500 Million Preferred Stock Offering

Corebridge Financial (CRBG) has just wrapped up a $500 million fixed-income offering through non-convertible preferred stock. This fresh injection of capital shifts the company’s balance sheet and invites investors to take a closer look at its evolving capital structure.

See our latest analysis for Corebridge Financial.

Following the $500 million preferred stock offering and a recent board resignation, Corebridge Financial’s 1-day share price return of 1.6% suggests investors are responding to shifting capital structure and leadership dynamics. Despite these headlines, the stock’s 1-year total shareholder return sits at -8.8%. In contrast, there has been a robust 62% gain over the past three years, signifying that while recent momentum is soft, long-term backers have still seen significant gains.

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But with shares trading at a significant discount to analyst targets and strong recent earnings growth, is Corebridge Financial an undervalued opportunity? Or is the market already factoring in its future potential?

Most Popular Narrative: 27.3% Undervalued

With a narrative fair value of $38.77 versus a last close price of $28.19, analysts see Corebridge Financial priced well below what future fundamentals might justify. This valuation gap is drawing attention, especially given the major capital events and executive changes making headlines.

The company's focused investments in digital modernization, AI-driven underwriting, and partnerships have led to improved customer acquisition, operating efficiencies, and a 14% reduction in general operating expenses since IPO. These efforts have contributed to structurally lower expense ratios and higher net margins.

Read the complete narrative.

Want to know what powers this sharp re-rating? The valuation rides on a bold profit turnaround and ambitious margins, along with a bet on falling share count. Find out which forecasted metrics and concrete changes are driving analysts to project such a big upside in Corebridge’s intrinsic value. Dive in to see the narrative’s blueprint for a higher valuation.

Result: Fair Value of $38.77 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, sustained low interest rates or disruptions to key distribution partnerships could present challenges to Corebridge’s earnings momentum and raise questions about optimistic projections.

Find out about the key risks to this Corebridge Financial narrative.

Another View: What Do the Multiples Say?

Looking beyond the fair value model, Corebridge Financial is priced at 14.8 times earnings, which is higher than both the peer average of 13.3 and the US industry average of 13.2. However, the fair ratio stands much higher at 29.2, suggesting the market could eventually shift its expectations. Does this premium signal risk, or could it mean the stock is being overlooked by those focused only on the headline multiple?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Corebridge Financial Narrative

If you’ve got your own perspective or want to dig through the numbers yourself, you can craft a custom Corebridge Financial thesis in just a few minutes, so why not Do it your way

A great starting point for your Corebridge Financial research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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