F&G Annuities & Life (FG) Stock May Be a Bargain After Q2 Results
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F&G Annuities & Life stock has fallen 15.8% over the past year, yet the latest valuation work suggests the market price may still sit below a reasonable estimate of intrinsic value. With both the Excess Returns model and market multiples pointing in the same direction, the current share price invites a closer look at whether that discount is justified.
The issue now is whether the recent share price weakness in F&G Annuities & Life is giving you a genuine discount to intrinsic value or simply reflecting the right amount of caution.
Find out why F&G Annuities & Life's -15.8% return over the last year is lagging behind its peers.
The Excess Returns model evaluates how efficiently F&G Annuities & Life can earn profits on its equity base above the required return. For F&G Annuities & Life, the inputs point to modest value creation rather than an aggressive growth story.
The model assumes a Book Value of $35.20 per share and a Stable EPS of $2.37 per share, based on the median return on equity from the past 5 years. Against a Cost of Equity of $2.34 per share, that translates into an Excess Return of $0.02 per share on an Average Return on Equity of 7.31%. The Stable Book Value is set at $32.39 per share, again using a 5 year median. On these inputs, the estimated intrinsic value comes out at $33.04 per share, which is about 16.3% above the current share price, so the stock screens as undervalued.
Because F&G Annuities & Life reported record assets under management of nearly $75b in the second quarter of 2026, the current discount suggests the market is still cautious about how much excess return those assets can generate over time.
Overall, the Excess Returns workup indicates F&G Annuities & Life stock appears undervalued relative to its calculated intrinsic value.
Our Excess Returns analysis suggests F&G Annuities & Life is undervalued by 16.3%. Track this in your watchlist or portfolio, or discover 52 more high quality undervalued stocks.
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for F&G Annuities & Life.
The P/E ratio suits F&G Annuities & Life because earnings are a key yardstick for how an insurer is being priced. F&G Annuities & Life currently trades on a P/E of 9.0x, compared with an Insurance industry average of about 11.6x and a peer group average of 11.3x. That places the stock at a discount to both the broader sector and closer peers on headline earnings.
The Fair Ratio model, which adjusts for the company’s size, profitability profile and risk, points to a P/E of about 16.2x as a more neutral level. That is a wide gap from the current 9.0x, suggesting the market is assigning a cautious earnings multiple even with record assets under management and ongoing capital returns. If earnings stay around current levels, the present P/E leaves room for the valuation to move closer to that tailored fair range.
On the P/E multiple alone, F&G Annuities & Life stock appears undervalued relative to what the fair ratio implies.
See what the numbers say about this price — find out in our valuation breakdown.
Simply Wall St Narratives pick up where the earlier valuation checks for F&G Annuities & Life leave off by spelling out what would need to happen to growth, margins and earnings for the stock to be worth materially more or less than today’s price on the Community page. Each one sets out fair value as a thesis about F&G Annuities & Life's business that you can track over time, rather than a one time snapshot.
You can be one of the first voices in the Simply Wall St community to set out a clear, number driven Narrative on F&G Annuities & Life's record nearly US$75b in assets under management and the recent capital returns to shareholders. You can then track how that view holds up as new results arrive. Share a thesis that ties those developments to where you think the stock should trade and see how it stands against future data.
Do you think there's more to the story for F&G Annuities & Life? Head over to our Community to see what others are saying!
For F&G Annuities & Life, both the Excess Returns intrinsic value estimate and the earnings multiple work suggest the stock screens as undervalued, even if the broader valuation checks are only mixed rather than emphatically positive. That leaves the debate centered on whether the discount reflects opportunity or a reasonable cushion for execution risk, especially around how effectively those large assets under management translate into steady excess returns. The key question from here is whether the market eventually assigns a higher multiple to those earnings, or decides the current caution is warranted and keeps the valuation where it is.
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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