Based on the technical and fundamental analysis of AFL, here are 5 key points indicating the stock is currently overvalued:
AFL is trading at $103.34, which is approximately 19% above its intrinsic value of $86.89 according to DCF analysis.
The stock's RSI of 44.12 and stochastic indicators below 30 suggest a bearish momentum, with price currently trading below key moving averages.
Recent analyst actions include Piper Sandler lowering their price target from $122 to $118, signaling concerns about valuation levels.
The consensus among 18 analysts is a "Hold" rating, with only 3 "Buy" ratings versus 12 "Holds" and 3 "Strong Sells".
While AFL has outperformed with a 31.2% gain over the past year, its current valuation multiples are elevated compared to historical averages, suggesting limited upside potential.