F&G Annuities & Life (FG) has quietly pushed about 13% higher over the past month, even though shares remain down sharply this year, a setup that often attracts value-focused investors.
See our latest analysis for F&G Annuities & Life.
That recent 1 month share price return of about 13% looks more like a relief rally than a full trend change, given the share price is still down sharply year to date. At the same time, the 3 year total shareholder return remains strongly positive, which hints that investors are cautiously revisiting the longer term growth story after a rough stretch.
If this rebound has you rethinking your portfolio, it could be a good moment to explore fast growing stocks with high insider ownership as potential next candidates for fresh ideas.
With shares still down heavily over the past year, yet trading only slightly below analyst targets but at a sizeable intrinsic discount, is F&G quietly undervalued, or is the market already pricing in its next phase of growth?
On a price-to-earnings basis, F&G Annuities & Life trades at 10.2x, slightly below peers and the broader US Insurance industry, suggesting a modest valuation discount at the current 33.72 share price.
The price-to-earnings multiple compares the company’s market value to its earnings and is a common way to gauge what investors are willing to pay for each dollar of profit in financial and insurance businesses.
Given FG’s P E of 10.2x versus a 10.6x peer average and 12.8x for the broader US Insurance group, the market appears to be pricing its profitability somewhat conservatively, even as the business has moved into sustained profitability with higher net margins and what are assessed as high quality earnings.
Compared with the industry’s 12.8x, FG’s lower P E signals that investors are not assigning a premium multiple to its earnings, which could be seen as a valuation gap.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-Earnings of 10.2x (UNDERVALUED)
However, risks remain, including potential earnings volatility from complex annuity products and any downturn in demand as higher rates reshape retirement planning behavior.
Find out about the key risks to this F&G Annuities & Life narrative.
Our DCF model points to a fair value of about 42.73 per share, implying FG trades roughly 21% below intrinsic value. That is a deeper discount than the modest P E gap. This raises the question: is the market too skeptical about its future cash flows?