Updated
Updated · Simply Wall St · May 17
F&G Annuities Fair Value Falls to $27 as Q1 Miss Leaves Shares at $28.04
Updated
Updated · Simply Wall St · May 17

F&G Annuities Fair Value Falls to $27 as Q1 Miss Leaves Shares at $28.04

1 articles · Updated · Simply Wall St · May 17

Summary

  • $27 is the latest fair-value estimate for F&G Annuities & Life, implying the stock is about 3.9% overvalued versus its $28.04 share price after a mixed first-quarter report.
  • Q1 revenue reached $1.187 billion and net income $248 million, but non-GAAP earnings missed analyst expectations, triggering the negative market reaction despite strong headline results.
  • Analysts cut their target from $37.43 to $27.00, reflecting a 7.22% discount rate, weaker expected revenue, a lower future P/E multiple and only partly offsetting stronger margin assumptions.
  • That cautious DCF view contrasts with FG's 7.2x P/E, well below peers at 12.3x and the broader U.S. insurance industry's 11.1x, leaving valuation support dependent on whether earnings risks fade.
  • Recent trading shows that tension: FG is up 3.43% over one month but down 6.66% year to date, while its one-year total shareholder return is negative despite a 52.15% gain over three years.

Insights

Is F&G Annuities a hidden bargain trading below its book value, or an overvalued trap for investors?
Why do analysts predict a weaker revenue future for F&G despite its record assets and new growth plans?