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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?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out F&G Annuities & Life for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 906 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you see the story differently or prefer to dig into the numbers yourself, you can build a personalized view in just a few minutes: Do it your way.

A good starting point is our analysis highlighting 1 key reward investors are optimistic about regarding F&G Annuities & Life.

FG might be compelling, but do not stop there. Use the Simply Wall St Screener to surface focused, high potential ideas before the crowd catches on.

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.

Companies discussed in this article include FG.

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