Latest Ratios: P/E Ratio 17.5x · EV/EBITDA 13.3x · ROE 13.1%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $63.1B | $58.7B | $58.4B | $49.4B | $45.9B | $39.5B | $31.8B | $39.5B | $35.3B | $35.0B | $28.8B |
| Enterprise Value | $65.3B | $60.8B | $59.7B | $52.5B | $49.4B | $42.4B | $34.6B | $41.2B | $36.7B | $36.8B | $29.3B |
| P/E Ratio → | 17.55 | 16.14 | 10.74 | 10.60 | 10.38 | 9.14 | 6.67 | 11.94 | 12.08 | 8.01 | 10.84 |
| P/S Ratio | 3.81 | 3.36 | 3.06 | 2.62 | 2.40 | 1.83 | 1.43 | 1.78 | 1.63 | 1.62 | 1.28 |
| P/B Ratio | 2.24 | 1.99 | 2.24 | 2.25 | 2.28 | 1.19 | 0.95 | 1.36 | 1.50 | 1.44 | 1.41 |
| P/FCF | 24.36 | 22.96 | 21.59 | 15.48 | 11.83 | 7.82 | 5.35 | 7.24 | 5.87 | 5.71 | 4.81 |
| P/OCF | 24.71 | 22.96 | 21.59 | 15.48 | 11.83 | 7.82 | 5.35 | 7.24 | 5.87 | 5.71 | 4.81 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.49 | 3.12 | 2.78 | 2.58 | 1.97 | 1.55 | 1.85 | 1.69 | 1.70 | 1.30 |
| EV / EBITDA | 13.30 | 10.96 | 9.31 | 9.97 | 10.14 | 8.15 | 8.32 | 9.26 | 9.22 | 9.16 | 7.21 |
| EV / EBIT | 14.07 | 13.08 | 9.31 | 9.97 | 10.14 | 8.15 | 8.32 | 9.26 | 9.22 | 9.16 | 7.21 |
| EV / FCF | — | 23.81 | 22.06 | 16.44 | 12.73 | 8.40 | 5.81 | 7.55 | 6.11 | 6.01 | 4.90 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.9% | 38.9% | 35.6% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Operating Margin | 26.6% | 26.6% | 33.5% | 27.9% | 25.4% | 24.2% | 18.7% | 20.0% | 18.3% | 18.6% | 18.1% |
| Net Profit Margin | 20.9% | 20.9% | 28.5% | 24.7% | 23.1% | 19.6% | 21.5% | 14.9% | 13.5% | 21.3% | 11.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.1% | 13.1% | 22.6% | 22.1% | 16.5% | 12.7% | 15.3% | 12.6% | 12.2% | 20.5% | 14.0% |
| ROA | 3.1% | 3.1% | 4.5% | 3.6% | 3.1% | 2.6% | 3.0% | 2.3% | 2.1% | 3.4% | 2.1% |
| ROIC | 11.8% | 11.8% | 18.4% | 16.2% | 12.2% | 10.8% | 9.3% | 12.0% | 11.7% | 12.8% | 15.6% |
| ROCE | 4.2% | 4.2% | 5.3% | 4.1% | 3.4% | 3.2% | 2.6% | 3.0% | 2.9% | 3.0% | 3.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.29 | 0.29 | 0.29 | 0.33 | 0.37 | 0.24 | 0.24 | 0.23 | 0.25 | 0.22 | 0.26 |
| Debt / EBITDA | 1.51 | 1.51 | 1.17 | 1.40 | 1.53 | 1.53 | 1.90 | 1.48 | 1.45 | 1.32 | 1.32 |
| Net Debt / Equity | — | 0.07 | 0.05 | 0.14 | 0.17 | 0.09 | 0.08 | 0.06 | 0.06 | 0.07 | 0.02 |
| Net Debt / EBITDA | 0.39 | 0.39 | 0.20 | 0.58 | 0.72 | 0.56 | 0.66 | 0.38 | 0.36 | 0.45 | 0.12 |
| Debt / FCF | — | 0.85 | 0.47 | 0.96 | 0.90 | 0.58 | 0.46 | 0.31 | 0.24 | 0.29 | 0.08 |
| Interest Coverage | 21.14 | 21.14 | 32.57 | 26.98 | 21.54 | 21.88 | 17.19 | 19.50 | 17.94 | 16.74 | 15.18 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 12.39 | 12.39 | — | — | — | — | — | — | — | 161.74 | 126.70 |
| Quick Ratio | 12.39 | 12.39 | — | — | — | — | — | — | — | 161.74 | 126.70 |
| Cash Ratio | 12.12 | 12.12 | — | — | — | — | — | — | — | 160.23 | 125.67 |
| Asset Turnover | — | 0.15 | 0.16 | 0.15 | 0.15 | 0.14 | 0.13 | 0.15 | 0.15 | 0.16 | 0.17 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 2.0% | 1.9% | 2.0% | 2.1% | 2.2% | 2.4% | 2.0% | 2.2% | 1.9% | 2.3% |
| Payout Ratio | 32.9% | 32.9% | 20.0% | 20.7% | 22.2% | 20.2% | 16.1% | 23.3% | 27.2% | 14.4% | 24.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.7% | 6.2% | 9.3% | 9.4% | 9.6% | 10.9% | 15.0% | 8.4% | 8.3% | 12.5% | 9.2% |
| FCF Yield | 4.1% | 4.4% | 4.6% | 6.5% | 8.5% | 12.8% | 18.7% | 13.8% | 17.0% | 17.5% | 20.8% |
| Buyback Yield | 5.6% | 6.0% | 4.8% | 5.7% | 5.2% | 5.8% | 4.8% | 4.1% | 3.7% | 3.9% | 4.9% |
| Total Shareholder Yield | 7.4% | 8.1% | 6.7% | 7.6% | 7.4% | 8.0% | 7.2% | 6.1% | 5.9% | 5.7% | 7.2% |
| Shares Outstanding | — | $532M | $565M | $599M | $638M | $677M | $716M | $746M | $775M | $798M | $828M |
Includes 30+ ratios · 30 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying AFL stock.
Aflac Incorporated's current P/E ratio is 17.5x. The historical average is 14.4x. This places it at the 77th percentile of its historical range.
Aflac Incorporated's current EV/EBITDA is 13.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.6x.
Aflac Incorporated's return on equity (ROE) is 13.1%. The historical average is 16.9%.
Based on historical data, Aflac Incorporated is trading at a P/E of 17.5x. This is at the 77th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Aflac Incorporated's current dividend yield is 1.82% with a payout ratio of 32.9%.
Aflac Incorporated has 38.9% gross margin and 26.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Aflac Incorporated's Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Combined ratio deterioration and earnings volatility
Metrics are mathematically derived from official filings.
Combined Ratio Drifts Toward Break-Even Threshold
Based on AFL's reported quarterly figures, the combined ratio climbed from 58.4% in 2025Q3 to 84.7% in 2026Q3, compressing underwriting margin from 41.6% to 15.3% and leaving a thinner cushion before expenses turn underwriting into a loss.
The loss ratio has held in a 40% to 45% band in recent quarters, so the deterioration is driven mainly by the expense ratio rising from roughly 27% to 41% over the same window. This pattern suggests either acquisition cost inflation or a shrinking premium denominator, and the reported revenue contraction makes the latter a plausible contributor. Investors should monitor whether the expense ratio normalizes, since sustained readings near 85% would leave limited room for adverse reserve development.
P/B Premium Rests on Trailing Returns
At 2.24x price-to-book and 18.16x trailing earnings, AFL trades above Prudential's 1.17x and Genworth's 0.37x, though below MetLife's 2.26x on a book basis, a premium that reflects its reported 13.1% trailing ROE.
A 2.24x P/B implies the market expects returns on invested capital to persist near the trailing 13% level, which is consistent with a franchise earning durable supplemental-product margins. However, the latest quarter's EPS miss against consensus suggests that the trailing ROE may overstate forward earnings power. The valuation therefore appears to hinge on whether recent underwriting pressure proves transitory or structural.
ROE Decomposition Shows Declining Underwriting Contribution
AFL's reported ROE fell from 7.1% in 2024Q2 to 1.0% in 2026Q3, with the decline tracking the compression in underwriting margin rather than any visible change in leverage, which held near 0.29 debt-to-equity.
Because the dataset does not disclose investment income or portfolio yield, the investment-on-float contribution to ROE cannot be isolated from the figures supplied. The trajectory is therefore best read as underwriting-driven, with the quarterly ROE swing from 5.9% to 1.0% over two quarters indicating high sensitivity to claims and expense timing. Analysts should treat trailing ROE as an upper-bound reference rather than a run-rate estimate.
Premium Leverage Stable Despite Shrinking Revenue
According to reported balance sheets, AFL's debt-to-equity held in a narrow 0.26 to 0.33 range across ten quarters while equity rose to $29.3B, indicating financial leverage has not been the source of recent earnings strain.
Stable D/E alongside rising equity points to a capital base that has been strengthened rather than drawn down, which supports solvency headroom. Premium-to-surplus cannot be computed directly because statutory surplus and RBC ratios are not supplied in the dataset, so underwriting leverage relative to rating agency guidelines remains unverified. Interest coverage has fallen to 8.14x in the latest quarter from above 40x in 2024Q4, a decline that warrants monitoring.
Lagging Globe Life on Returns Despite Similar Multiples
AFL's 13.1% ROE and 20.9% net margin trail Globe Life's 19.5% ROE and 19.4% margin, while its 2.24x P/B sits above the peer median, suggesting the market is paying for scale and Japanese franchise breadth rather than current return superiority.
Globe Life's higher ROE at a comparable valuation implies a stronger return profile per dollar of book value, which weakens the case for AFL's premium on profitability alone. AFL's advantage lies in diversification and distribution scale, which the peer ratios do not capture. Investors should weigh whether the Japan franchise justifies a premium to domestically concentrated peers given the currency exposure it introduces.
Trailing P/E Overstates Earnings Durability
The 18.16x trailing P/E appears undemanding only if trailing earnings persist, yet the most recent quarter's $0.61 EPS against $1.73 consensus suggests the denominator may be unstable, making P/B a more defensible anchor than P/E for insurers.
Insurers are commonly valued on earnings, and P/E is frequently applied by default, but for AFL reserve development, catastrophe-like claim spikes, and DAC amortization can make single-period earnings a poor guide. Book value, which reflects invested assets backing reserves, offers a steadier anchor, though it is itself sensitive to unrealized investment marks. Analysts should adjust trailing earnings for reserve movements where disclosed before relying on P/E.