Voya Financial (VOYA): Assessing Valuation Following Strong Earnings Growth and Share Buyback Completion

Voya Financial (VOYA) just released its third quarter earnings, revealing year-over-year increases in both revenue and net income. The company also completed a substantial share buyback during the same period, reinforcing management’s positive outlook.

See our latest analysis for Voya Financial.

Voya Financial’s latest earnings and decisive buyback may have helped steady investor sentiment, but the story is still unfolding. The share price has edged up 3% year-to-date, yet the 1-year total shareholder return lags at -10.9%. This shows some near-term momentum, but longer-term performance has lost ground.

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With solid earnings growth and a sizable buyback boosting confidence, the question now is whether Voya Financial’s shares still have room to run, or if the market has already priced in the improving fundamentals and future growth potential.

Most Popular Narrative: 17.2% Undervalued

With Voya Financial closing at $70.74 and the most widely followed narrative calculating a fair value of $85.40, there is a significant gap suggesting the shares remain underappreciated relative to projected future growth. This viewpoint is based on updated analyst models that factor in strategic business moves and market drivers in their calculations.

The rapidly growing and aging U.S. population is increasing demand for workplace retirement plans, asset management, and annuity products. Voya has surpassed $1 trillion in assets and nearly 10 million participant accounts in retirement, with strong organic net flows and new client wins, suggesting continued topline (revenue) growth and expanding assets under management.

Read the complete narrative.

What bold assumptions are powering this fair value? Analysts behind the narrative are betting on Voya’s ability to unlock higher margins, execute big revenue targets, and deliver profit multiples that defy industry norms. Ready to uncover which financial forecasts and operational shifts put this upside on the table?

Result: Fair Value of $85.40 (UNDERVALUED)

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

However, ongoing fee pressure and medical cost volatility could undermine projected earnings improvements, which may leave Voya’s upside story vulnerable to external headwinds.

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

Build Your Own Voya Financial Narrative

If you want to challenge these assumptions or have a unique perspective, dive into the numbers and shape your own view in just a few minutes. Do it your way

A great starting point for your Voya 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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