Is Aflac, Inc. overvalued or undervalued?

As of 5 August 2025, the valuation grade for Aflac, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is overvalued based on its current metrics, with a P/E ratio of 36, a Price to Book Value of 4.84, and an EV to Capital Employed ratio of 4.75. In comparison, Progressive Corp. has a P/E of 18.83 and MetLife, Inc. has a P/E of 18.69, both indicating that Aflac is trading at a premium relative to its peers.
Despite a strong performance over the long term, with a 5-year return of 185.71% compared to the S&P 500's 96.61%, Aflac's recent returns have lagged behind the index, particularly in the 1-year period where it returned -0.88% versus the S&P 500's 17.14%. This suggests that while the company has historically performed well, its current valuation may not be justified given its recent performance and comparison to industry peers.