I came across AFLAC (AFL) in November 2011 after the shares of the company had a deep dive due to concerns of European Security Exposure. The stock fell from $58 in January 2011 to $30 in September 2011 and then recovered to $49 by January 2012.
This represents a change in market cap from $27 billion in January 2011 to $14 billion in September 2011 and $23.3 billion in January 2012. There was the Japanese Tsunami on March 11, 2011, that could have impacted the company’s profitability and also some Europe-originated yen-denominated debt that was impaired.
However, it seemed highly likely that actual intrinsic value of the company was not changing that much, but it was the investor psychology that was causing the swings. This motivated me to dig deeper into AFLAC to find out what was the true intrinsic value of this company.
— Guru Focus