American Equity Investment Life Holding Company

NYSE:AEL Stock Report

Market Cap: US$4.5b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

American Equity Investment Life Holding Valuation

Is AEL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of AEL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: AEL ($56.47) is trading below our estimate of fair value ($174.71)

Significantly Below Fair Value: AEL is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for AEL?

Other financial metrics that can be useful for relative valuation.

AEL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

How does AEL's PE Ratio compare to its peers?

The above table shows the PE ratio for AEL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.9x
LNC Lincoln National
4.3x3.3%US$5.3b
FG F&G Annuities & Life
19.5x45.4%US$4.8b
CNO CNO Financial Group
7.6x-0.6%US$2.9b
GNW Genworth Financial
28.1x46.7%US$2.6b
AEL American Equity Investment Life Holding
26.9x18.6%US$4.5b

Price-To-Earnings vs Peers: AEL is expensive based on its Price-To-Earnings Ratio (26.9x) compared to the peer average (14.6x).


Price to Earnings Ratio vs Industry

How does AEL's PE Ratio compare vs other companies in the US Insurance Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: AEL is expensive based on its Price-To-Earnings Ratio (26.9x) compared to the US Insurance industry average (14.1x).


Price to Earnings Ratio vs Fair Ratio

What is AEL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

AEL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.9x
Fair PE Ratio20.5x

Price-To-Earnings vs Fair Ratio: AEL is expensive based on its Price-To-Earnings Ratio (26.9x) compared to the estimated Fair Price-To-Earnings Ratio (20.5x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst AEL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
US$55.00
0%
1.1%US$56.00US$54.00n/a5
Jun ’25n/a
US$55.00
0%
1.1%US$56.00US$54.00n/a5
May ’25US$56.16
US$55.00
-2.1%
1.1%US$56.00US$54.00n/a5
Apr ’25US$56.07
US$55.00
-1.9%
1.1%US$56.00US$54.00n/a5
Mar ’25US$55.62
US$55.00
-1.1%
1.1%US$56.00US$54.00n/a5
Feb ’25US$55.27
US$54.80
-0.9%
0.7%US$55.00US$54.00n/a5
Jan ’25US$55.80
US$54.80
-1.8%
0.7%US$55.00US$54.00n/a5
Dec ’24US$55.58
US$54.80
-1.4%
0.7%US$55.00US$54.00n/a5
Nov ’24US$53.06
US$54.80
+3.3%
0.7%US$55.00US$54.00n/a5
Oct ’24US$53.64
US$54.83
+2.2%
0.7%US$55.00US$54.00n/a6
Sep ’24US$53.65
US$54.83
+2.2%
0.7%US$55.00US$54.00n/a6
Aug ’24US$53.53
US$54.83
+2.4%
0.7%US$55.00US$54.00n/a6
Jul ’24US$52.11
US$48.71
-6.5%
7.7%US$55.00US$44.00n/a7
Jun ’24US$39.65
US$45.00
+13.5%
6.6%US$50.00US$40.00n/a9
May ’24US$38.66
US$44.00
+13.8%
8.2%US$50.00US$39.00US$56.1610
Apr ’24US$36.49
US$43.90
+20.3%
11.4%US$50.00US$35.00US$56.0710
Mar ’24US$41.61
US$46.30
+11.3%
6.0%US$50.00US$41.00US$55.6210
Feb ’24US$47.74
US$46.80
-2.0%
6.3%US$51.00US$41.00US$55.2710
Jan ’24US$45.62
US$43.60
-4.4%
8.2%US$51.00US$38.00US$55.8010
Dec ’23US$41.46
US$42.60
+2.7%
9.3%US$51.00US$38.00US$55.5810
Nov ’23US$42.51
US$44.20
+4.0%
8.6%US$51.00US$38.00US$53.0610
Oct ’23US$37.29
US$43.90
+17.7%
8.8%US$51.00US$38.00US$53.6410
Sep ’23US$37.68
US$43.70
+16.0%
9.4%US$51.00US$38.00US$53.6510
Aug ’23US$37.48
US$41.20
+9.9%
6.6%US$47.00US$38.00US$53.5310
Jul ’23US$37.36
US$42.90
+14.8%
4.9%US$47.00US$40.00US$52.1110
Jun ’23US$40.68
US$43.10
+5.9%
6.4%US$48.00US$40.00US$39.6510

Analyst Forecast: Target price is lower than the current share price.


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