Is Aflac, Inc. overvalued or undervalued?

As of 30 April 2025, Aflac, Inc. has moved from a fair to an expensive valuation grade, indicating that the company is currently overvalued. The P/E ratio stands at 36, significantly higher than its peer, Progressive Corp., which has a P/E of 24.36. Additionally, Aflac's price-to-book value is 4.84, further suggesting a premium valuation compared to the industry averages.
In comparison to its peers, The Travelers Cos., Inc. is also considered fairly valued with a P/E of 47.55, while MetLife, Inc. is classified as expensive with a P/E of 17.51. Aflac's return over the past year at 16.92% outperformed the S&P 500's return of 10.26%, but this strong performance does not justify its current valuation metrics, which indicate that it is overvalued in the market.