investorscraft@gmail.com

Intrinsic Value of MetLife, Inc. (MET)

Previous Close$80.65
Intrinsic Value
Upside potential
Previous Close
$80.65

VALUATION INPUT DATA

This valuation is based on fiscal year data as of 2024 and quarterly data as of .

Data is not available at this time.

Stock Valuation Context

Business Model And Market Position

MetLife, Inc. is a leading global provider of insurance, annuities, and employee benefit programs, operating across life, accident & health, and retirement solutions. The company serves a diverse clientele, including individuals, corporations, and institutions, leveraging its extensive distribution network and strong brand recognition. MetLife’s revenue model is anchored in premium income, investment returns, and fee-based services, with a focus on underwriting discipline and risk management to sustain profitability. The firm competes in a mature but highly regulated industry, where scale, diversification, and operational efficiency are critical differentiators. Its market position is reinforced by a robust international presence, particularly in Asia and Latin America, which provides growth opportunities beyond its core U.S. market. MetLife’s ability to cross-sell products and adapt to evolving customer needs—such as digital engagement and workplace benefits—positions it as a resilient player in the insurance sector.

Revenue Profitability And Efficiency

MetLife reported $69.9 billion in revenue for FY 2024, with net income of $4.4 billion, reflecting a net margin of approximately 6.3%. The company generated $14.6 billion in operating cash flow, underscoring strong liquidity from premiums and investments. Notably, capital expenditures were negligible, indicating a capital-light model focused on underwriting and asset management rather than heavy infrastructure investments.

Earnings Power And Capital Efficiency

Diluted EPS stood at $5.94, demonstrating MetLife’s ability to translate top-line growth into shareholder returns. The absence of significant capex highlights capital efficiency, with earnings primarily driven by underwriting performance and investment income. The firm’s focus on optimizing its portfolio and managing risk-adjusted returns supports consistent earnings power despite macroeconomic volatility.

Balance Sheet And Financial Health

MetLife maintains a solid balance sheet, with $20.1 billion in cash and equivalents against $18.7 billion in total debt, reflecting prudent liquidity management. The debt-to-equity ratio appears manageable, supported by steady cash flows from operations. The company’s financial health is further reinforced by its ability to meet policyholder obligations and maintain regulatory capital requirements.

Growth Trends And Dividend Policy

Growth has been steady, with a focus on expanding high-margin segments like group benefits and retirement solutions. MetLife’s dividend policy remains shareholder-friendly, with a $2.44 annual dividend per share, offering a yield competitive within the insurance sector. The company balances reinvestment for growth with consistent returns to investors.

Valuation And Market Expectations

MetLife’s valuation reflects its stable earnings and defensive positioning in the insurance industry. Market expectations likely hinge on its ability to sustain underwriting margins and navigate interest rate fluctuations, which impact investment income. The stock’s performance will depend on execution in international markets and cost management.

Strategic Advantages And Outlook

MetLife’s scale, diversified product suite, and global footprint provide strategic advantages in a competitive landscape. The outlook remains cautiously optimistic, with growth initiatives in digital transformation and emerging markets offsetting challenges like regulatory pressures and economic uncertainty. The company’s disciplined risk management and strong brand equity position it for long-term resilience.

Sources

Company filings (10-K), investor presentations

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2025202620272028202920302031203220332034203520362037203820392040204120422043204420452046204720482049

INCOME STATEMENT

Revenue growth rate, %NaN
Revenue, $NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $mNaN
Operating income, $mNaN
EBITDA, $mNaN
Interest expense (income), $mNaN
Earnings before tax, $mNaN
Tax expense, $mNaN
Net income, $mNaN

BALANCE SHEET

Cash and short-term investments, $mNaN
Total assets, $mNaN
Adjusted assets (=assets-cash), $mNaN
Average production assets, $mNaN
Working capital, $mNaN
Total debt, $mNaN
Total liabilities, $mNaN
Total equity, $mNaN
Debt-to-equity ratioNaN
Adjusted equity ratioNaN

CASH FLOW

Net income, $mNaN
Depreciation, amort., depletion, $mNaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $mNaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $mNaN
Free cash flow, $mNaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $mNaN
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN
HomeMenuAccount