MetLife Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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 MET.PRF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MET.PRF ($21.38) is trading below our estimate of fair value ($32.59)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MET.PRF?

Key metric: As MET.PRF is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MET.PRF. This is calculated by dividing MET.PRF's market cap by their current earnings.
What is MET.PRF's PE Ratio?
PE Ratio	16.2x
Earnings	US$3.56b
Market Cap	US$57.70b

MET.PRF 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/Revenue	1.2x
Enterprise Value/EBITDA	11.9x
PEG Ratio	1.2x

Price to Earnings Ratio vs Peers

How does MET.PRF's PE Ratio compare to its peers?

The above table shows the PE ratio for MET.PRF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	12.4x
AFL Aflac	16.3x	-1.7%	US$61.8b
PRU Prudential Financial	11.2x	6.8%	US$45.4b
UNM Unum Group	7.5x	-4.3%	US$13.4b
PRI Primerica	14.6x	6.8%	US$10.0b
MET.PRF MetLife	16.2x	13.2%	US$57.7b

Price-To-Earnings vs Peers: MET.PRF is expensive based on its Price-To-Earnings Ratio (16.2x) compared to the peer average (12.4x).

Price to Earnings Ratio vs Industry

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

3 Companies	Price / Earnings	Estimated Growth	Market Cap
UTGN UTG	2x	n/a	US$85.49m
AORE.F American Overseas Group	2.1x	n/a	US$16.68m
CUII China United Insurance Service	0.0003x	n/a	US$3.13k

No more companies available in this PE range

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: MET.PRF is expensive based on its Price-To-Earnings Ratio (16.2x) compared to the US Insurance industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is MET.PRF'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.

MET.PRF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.2x
Fair PE Ratio	19.2x

Price-To-Earnings vs Fair Ratio: MET.PRF is good value based on its Price-To-Earnings Ratio (16.2x) compared to the estimated Fair Price-To-Earnings Ratio (19.2x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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