Lincoln National Corporation engages in multiple insurance and retirement businesses in the United States. It operates through Annuities, Retirement Plan Services, Life Insurance, and Group Protection segments. The company was founded in 1904 and is based in Radnor, Pennsylvania.
LNC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for LNC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Lincoln National Corp ranked in the 12th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Lincoln National Corp ended up being:
Its compound free cash flow growth rate, as measured over the past 5.52 years, is -0.25% -- higher than only 6.48% of stocks in our DCF forecasting set.
Lincoln National Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 3.61% of tickers in our DCF set.
Relative to other stocks in its sector (Financial Services), Lincoln National Corp has a reliance on debt greater than 67.45% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
AIG, GEG, MN, GSHD, and AXS can be thought of as valuation peers to LNC, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
Lincoln National (LNC) declares $0.42/share quarterly dividend, 5% increase from prior dividend of $0.40.Payable Feb. 1; for shareholders of record Jan. 11; ex-div Jan. 8.See LNC Dividend Scorecard, Yield Chart, & Dividend Growth....