Assessing Aflac’s Valuation After Its New Digital Cancer Insurance Partnership With Ethos

Ethos’s new partnership with Aflac (AFL) puts Aflac’s cancer insurance directly on Ethos’s fully digital platform. This is a strategic step toward broader distribution, smoother onboarding, and a more tech enabled supplemental health business.

See our latest analysis for Aflac.

The Ethos deal slots into a steady year for Aflac, with the share price now at $110.62 and an 8.07 percent year to date share price return. This may hint at gradually building momentum on top of a strong multi year total shareholder return profile.

If this kind of digital distribution story interests you, it might be a good time to explore other insurance and benefits names using our healthcare stocks as a starting universe.

Yet with Aflac trading almost exactly in line with analyst targets, showing modest growth and a strong long term track record, investors now face a key question: is this a fresh entry point, or is future growth already priced in?

Most Popular Narrative Narrative: 40% Undervalued

With Aflac last closing at $110.62 against a narrative fair value just above $111, the story leans on cash flow power and resilient margins.

In order for the above numbers to justify the analysts price target, the company would need to trade at a PE ratio of 16.7x on those 2028 earnings, down from 23.3x today. This future PE is greater than the current PE for the US Insurance industry at 14.3x.

Read the complete narrative.

Curious how modest revenue growth, rising margins, and shrinking share count can still point to a richer multiple ahead? Want to see the full playbook?

Result: Fair Value of $111.08 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent Japan premium pressures and softer U.S. sales growth could easily blunt the upside that digital efficiency and buybacks are signaling.

Find out about the key risks to this Aflac narrative.

Build Your Own Aflac Narrative

If you see the outlook differently or want to dig into the numbers yourself, you can build a personalized view in just minutes with Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Aflac.

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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.

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