FLFG (Federal Life Group) Earnings Power Value (EPV): $59.05 (As of Mar19)


What is Federal Life Group Earnings Power Value (EPV)?

Federal Life Group FLFG Earnings Power Value (EPV) is $59.05 as of Mar19.

As of Mar19, Federal Life Group's earnings power value is $59.05. *

* GuruFocus does not store EPV value into our database if Average Maintenance CAPEX is 0.

Margin of Safety is N/A.

The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future. Assumption: Current profitability is sustainable.

Federal Life Group  (OTCPK:FLFG) Earnings Power Value (EPV) Explanation

Assumption: Current profitability is sustainable.

Earnings power value (EPV) uses a very basic equation which assumes no growth, although it does rely on an assumption about the cost of capital as well as the fact that current earnings are sustainable. It also involves several adjustments to clean up the underlying Earnings figures.

Be Aware

Though using today's earnings in calculating Earnings Power Value, GuruFocus is normalizing these earnings to the business cycle. This eliminates the effects on profitability of valuing the firm at different points in the business cycle. This means that we are considering the average earnings over 5 years.

Federal Life Group Earnings Power Value (EPV) Related Terms

Federal Life Group Earnings Power Value (EPV) Historical Data

* Premium members only.

The historical data trend for Federal Life Group's Earnings Power Value (EPV) 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.

Federal Life Group Earnings Power Value (EPV) Chart

Federal Life Group Annual Data
Trend Dec16 Dec17 Dec18
Earnings Power Value (EPV)
0.00 0.00 0.00

Federal Life Group Quarterly Data
Dec16 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19
Earnings Power Value (EPV) Get a 7-Day Free Trial 0.00 0.00 0.00 0.00 0.00

FLFG vs : Earnings Power Value (EPV) Comparison

For the Insurance - Life subindustry, Federal Life Group's Earnings Power Value (EPV), along with its competitors' market caps and Earnings Power Value (EPV) 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.

Federal Life Group Earnings Power Value (EPV) vs Insurance Industry

For the Insurance industry and Financial Services sector, Federal Life Group's Earnings Power Value (EPV) distribution charts can be found below:

* The bar in red indicates where Federal Life Group's Earnings Power Value (EPV) falls into.


Federal Life Group Earnings Power Value (EPV) Calculation

Earnings Power Value also known as just Earnings Power is a valuation technique popularised by Bruce Greenwald, an authority on value investing at Columbia University. It is arguably a better way to analyze stocks than Discounted Cash Flow analysis that relies on highly speculative growth assumptions many years into the future.

The basic concept of EPV is that one should value a stock based on the current free cash flow of a company and not on future projections which may, or may not, come true. This valuation tool excludes the potential growth that a company may have so that needs to be looked at separately. Since future growth is excluded from the analysis, only the maintenance capital expenditures are subtracted from after-tax EBIT (earnings before interest and taxes) and growth capex is ignored.

What does a Earnings Power Value (EPV) of $59.05 mean?
Federal Life Group (FLFG) has a Earnings Power Value (EPV) of $59.05 as of Mar19. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on Federal Life Group and its competitors.
Is Federal Life Group's Earnings Power Value (EPV) too high?
Federal Life Group's current Earnings Power Value (EPV) is $59.05.
How does Federal Life Group's Earnings Power Value (EPV) compare to ?
Federal Life Group's Earnings Power Value (EPV) of $59.05 can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Earnings Power Value (EPV) for an Insurance company?
A good Earnings Power Value (EPV) depends on the Insurance industry context. However, Earnings Power Value (EPV) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Earnings Power Value (EPV) mean?
A high Earnings Power Value (EPV) can signal that a stock is expensive relative to its fundamentals. Bruce Greenwald's earnings power value focuses on current earnings without factoring in future growth. View historical data on Federal Life Group and its competitors. Federal Life Group's current Earnings Power Value (EPV) is $59.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Federal Life Group stock overvalued right now?
Federal Life Group (FLFG) has a current Earnings Power Value (EPV) of $59.05. The current Earnings Power Value (EPV) is $59.05. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Earnings Power Value (EPV) calculated?
Earnings Power Value (EPV) is calculated from a company's financial statements. For Federal Life Group (FLFG), the current Earnings Power Value (EPV) is $59.05 as of Mar19. 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.

Federal Life Group Business Description

Comparable Companies
Address 3750 West Deerfield Road, Riverwoods, IL, USA, 60015
Federal Life Group Inc provides life insurance and annuity products targeted to the middle American market. Its core business activities include the sale of life insurance and fixed index and fixed rate annuities. Products offered by the company include Lifetime Coverage, Specific Period of Time Coverage, Flexible Coverage, Long-Term Growth with Fixed and Index-Linked Options, Multi-Pay Retirement Savings Plan, Single-Pay Retirement Savings Plan, Immediate Guaranteed Retirement Income, Final Expense Plan, Final Expense Plan - Limited Health Issues and Single-Pay Permanent Life.