Analyst Note| Henry Heathfield, CFA |
Aegon has released its results for second-half 2020 and these results look good to us. We maintain our EUR 4.5 fair value estimate and no moat rating. We will roll our model when we have the full balance sheet as a necessity, and this should be around March 18. Our fair value estimate is 0.41 times the second-half 2020 book value and at current levels the stock provides a 320-basis-point dividend yield. While management estimate a doubling of this current yield over the next few years, we think a more than 5% yield is conservatively achievable. Shares are undervalued.