Is Brighthouse Financial, Inc. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Brighthouse Financial, Inc. has moved from attractive to very attractive, indicating a strong improvement in its valuation outlook. The company appears undervalued, supported by a P/E ratio of 9, a Price to Book Value of 1.11, and a PEG ratio of 0.06, which suggests that the stock is trading at a significant discount relative to its growth potential. In comparison to peers, Globe Life, Inc. has a P/E of 11.82, while Primerica, Inc. stands at 12.59, reinforcing the notion that Brighthouse Financial is undervalued in its sector.
Despite recent underperformance, with a 1Y return of 4.74% compared to the S&P 500's 17.14%, the long-term perspective shows a 5Y return of 59.99%, which is still substantial but lags behind the S&P 500's 96.61%. This divergence in returns further emphasizes the potential for upside in Brighthouse Financial's valuation.