FBL Financial Group underwrites and markets a broad range of life insurance and annuities to individuals and businesses. The company was founded in 1945 and is based in West Des Moines, Iowa.
FFG Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Fbl Financial Group Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Fbl Financial Group Inc ranked in the 54th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 30.33%. The most interesting components of our discounted cash flow analysis for Fbl Financial Group Inc ended up being:
The company's balance sheet shows it gets 93% of its capital from equity, and 7% of its capital from debt. Notably, its equity weight is greater than 85.64% of US equities in the Financial Services sector yielding a positive free cash flow.
The business' balance sheet suggests that 7% of the company's capital is sourced from debt; this is greater than only 19.31% of the free cash flow producing stocks we're observing.
FFG's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 40.3% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Fbl Financial Group Inc? See AMG, HNNA, WLTW, CINF, and KMPR.
Farm Bureau Property & Casualty Insurance proposed to acquire all of the outstanding shares of Class A common stock and Class B common stock of FBL Financial Group ([[FFG]] +29.7%) for $47/share in cash; those shares that are not currently owned by it or the Iowa Farm Bureau Federation ((IFBF)).The per share...