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AflacAFL -0.09%74 Degree of Operating Leverage is 6.46 as of Jun. 2026. GuruFocus rates AFL with a GF Score™ of 74/100 and a GF Value™ of $129.15 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 365 Insurance companies, Aflac ranks worse than 86.85% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Aflac's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 6.46. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Aflac's Degree of Operating Leverage or its related term are showing as below:
AFL's Degree of Operating Leverage is ranked worse than 86.85% of 365
companies
in the Insurance industry
Industry Median: 1.18
vs AFL: 6.46
Aflac (NYSE:AFL) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Aflac Degree of Operating Leverage Related Terms
Aflac Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Aflac's Degree of Operating Leverage 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.
AFL vs MET, PRU, UNM: Degree of Operating Leverage Comparison
For the Insurance - Life subindustry, Aflac's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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.
Aflac Degree of Operating Leverage vs Insurance Industry
For the Insurance industry and Financial Services sector, Aflac's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Aflac's Degree of Operating Leverage falls into.
* 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.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 6.46 mean?
Aflac (AFL) has a Degree of Operating Leverage of 6.46 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Aflac and its competitors. According to the industry distribution chart, Aflac ranks #317 out of 365 companies in the Insurance industry, placing it in the top 86.8%.
Is Aflac's Degree of Operating Leverage too high?
Aflac's current Degree of Operating Leverage is 6.46. The Insurance industry median Degree of Operating Leverage is 1.18. Aflac's value of 6.46 is 447.5% above this industry median. Based on the distribution chart, Aflac ranks #317 out of 365 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Aflac has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aflac's Degree of Operating Leverage compare to MET and PRU?
According to the Insurance industry distribution chart, Aflac ranks #317 out of 365 companies for Degree of Operating Leverage. This places Aflac in the lower half of its industry. The industry median Degree of Operating Leverage is 1.18. Aflac's value of 6.46 is 447.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for an Insurance company?
The median Degree of Operating Leverage among Insurance companies is 1.18, based on 365 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Aflac's current Degree of Operating Leverage of 6.46 is 447.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Aflac and its competitors. For the Insurance industry, the median Degree of Operating Leverage is 1.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aflac's current Degree of Operating Leverage is 6.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aflac stock overvalued right now?
Based on GuruFocus' analysis, Aflac (AFL) is currently considered Modestly Undervalued. The stock's GF Value™ is $129.15, compared to a current price of $116.07 — trading 10.1% below its estimated fair value. The current Degree of Operating Leverage is 6.46 and 447.5% above the Insurance industry median of 1.18. Aflac's overall GF Score™ is 74/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Aflac (AFL), the current Degree of Operating Leverage is 6.46 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Aflac (AFL) Overvalued in 2026?
Based on GuruFocus' analysis, Aflac stock appears to be undervalued.
The current stock price of $116.07 is trading 10.1% below its estimated GF Value™ of $129.15.
GuruFocus considers Aflac to be Modestly Undervalued.
Key valuation signals for AFL:
Degree of Operating Leverage: 6.46
GF Value™: $129.15 vs. price of $116.07 (10.1% below fair value)
Industry Position: 447.5% above the Insurance median (#317 of 365)
No single metric tells the full story. See the AFL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aflac Inc offers supplemental health insurance and life insurance in the United States and Japan. In addition to its cancer policies, the company has broadened its product offerings to include accident, dental and vision, disability, and long-term-care insurance. It markets its products through independent distributors, selling the majority of its policies directly to consumers at their places of work, and also reaches out to its customers outside of their worksite through digital mediums. The company has two reportable business segments: Aflac Japan, which generates the maximum revenue, and Aflac U.S.
74GF Score
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