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Globe Life (Globe Life) Intrinsic Value: Projected FCF : $224.58 (As of Apr. 28, 2024)


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What is Globe Life Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-28), Globe Life's Intrinsic Value: Projected FCF is $224.58. The stock price of Globe Life is $75.75. Therefore, Globe Life's Price-to-Intrinsic-Value-Projected-FCF of today is 0.3.

The historical rank and industry rank for Globe Life's Intrinsic Value: Projected FCF or its related term are showing as below:

GL' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.34   Med: 0.51   Max: 0.6
Current: 0.34

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Globe Life was 0.60. The lowest was 0.34. And the median was 0.51.

GL's Price-to-Projected-FCF is ranked better than
80.82% of 391 companies
in the Insurance industry
Industry Median: 0.65 vs GL: 0.34

Globe Life Intrinsic Value: Projected FCF Historical Data

The historical data trend for Globe Life's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Globe Life Intrinsic Value: Projected FCF Chart

Globe Life Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 189.36 220.23 244.53 215.39 224.58

Globe Life Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 214.83 213.98 221.60 224.58 -

Competitive Comparison of Globe Life's Intrinsic Value: Projected FCF

For the Insurance - Life subindustry, Globe Life's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Globe Life's Price-to-Projected-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Globe Life's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Globe Life's Price-to-Projected-FCF falls into.



Globe Life Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Globe Life's Free Cash Flow(6 year avg) = $1,314.48.

Globe Life's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Mar24)/0.8)/Shares Outstanding (Diluted Average)
=(13.137944322724*1314.47632+0/0.8)/95.115
=181.56

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Globe Life  (NYSE:GL) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Globe Life's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=75.75/181.56459765231
=0.42

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Globe Life Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Globe Life's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Globe Life (Globe Life) Business Description

Industry
Traded in Other Exchanges
Address
3700 South Stonebridge Drive, McKinney, TX, USA, 75070
Globe Life Inc is an insurance holding company. It provides a variety of life and supplemental health insurance products and annuities to a broad base of customers. The company's core operations are organized into four reportable segments: life insurance, supplemental health insurance, annuities, and investments. Investment activities, conducted by the investment segment, focus on seeking investments with a yield and term appropriate to support the insurance product obligations. These investments generally consist of fixed maturities and, over the long term, the expected yields are considered when setting insurance premium rates and product profitability expectations.
Executives
Jennifer Allison Haworth officer: EVP & Chief Marketing Officer 3700 S. STONEBRIDGE DRIVE, MCKINNEY TX 75070
Melissa Jane Buchan director 1920 MAIN STREET, SUITE 500, IRVINE CA 92614
Dolores L Skarjune officer: EVP & Chief Admin. Officer 3700 S. STONEBRIDGE DRIVE, MCKINNEY TX 75070
Rebecca E Zorn officer: EVP & Chief Talent Officer 3700 S. STONEBRIDGE DRIVE, MCKINNEY TX 75070
Michael Clay Majors officer: EVP - Investor Rel. & Admin. UNITED AMERICAN INSURANCE COMPANY, 3700 SOUTH STONEBRIDGE DRIVE, MCKINNEY TX 75070
Frank M Svoboda officer: EVP & CFO 3340 PECAN HOLLOW CT, GRAPEVINE TX 76051
James Matthew Darden officer: EVP, Chief Strategy Officer 2904 BELCLAIRE DRIVE, FRISCO TX 75034
Michael Shane Henrie officer: SVP & Chief Accounting Officer UNITED AMERICAN INSURANCE COMPANY, 3700 SOUTH STONEBRIDGE DRIVE, MCKINNEY TX 75070
Robert Brian Mitchell officer: EVP, General Counsel and CRO 3120 HARVEY PKWY, OKLAHOMA CITY OK 73118
Cheryl Alston director 3700 S. STONEBRIDGE DRIVE, MCKINNEY TX 75070
David A Rodriguez director 10400 FERNWOOD ROAD, BETHESDA MD 20817
Alice S Cho director P.O. BOX 30918, BILLINGS MT 59116-0918
Steven John Dichiaro other: Exec. Officer of Principal Sub 2152 SEVEN LAKES DR, LOVELAND CO 80538
Gary L Coleman director, officer: Co-Chairman & CEO
Larry M Hutchison director, officer: Co-Chaiman & CEO P O BOX 8080, MCKINNEY TX 75010

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