Great-West Lifeco Valuation

Q: What is the Fair Price of GWO.PRT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

GWO.PRT (CA$21.19) is trading below our estimate of [[fair value]] (CA$50.69)

Is GWO.PRT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of GWO.PRT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GWO.PRT (CA$21.19) is trading below our estimate of fair value (CA$50.69)

Significantly Below Fair Value: GWO.PRT is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GWO.PRT?

Key metric: As GWO.PRT is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GWO.PRT. This is calculated by dividing GWO.PRT's market cap by their current earnings.
What is GWO.PRT's PE Ratio?
PE Ratio	12.7x
Earnings	CA$3.64b
Market Cap	CA$46.37b

GWO.PRT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.6x
Enterprise Value/EBITDA	6x
PEG Ratio	2.4x

Price to Earnings Ratio vs Peers

How does GWO.PRT's PE Ratio compare to its peers?

The above table shows the PE ratio for GWO.PRT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	13.8x
POW Power Corporation of Canada	13.1x	9.1%	CA$30.0b
SLF Sun Life Financial	13.8x	6.8%	CA$49.2b
MFC Manulife Financial	15.6x	13.4%	CA$79.5b
IAG iA Financial	12.8x	7.5%	CA$12.4b
GWO.PRT Great-West Lifeco	12.7x	5.2%	CA$46.4b

Price-To-Earnings vs Peers: GWO.PRT is good value based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (13.8x).

Price to Earnings Ratio vs Industry

How does GWO.PRT's PE Ratio compare vs other companies in the North American Insurance Industry?

3 Companies	Price / Earnings	Estimated Growth	Market Cap

3 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: GWO.PRT is good value based on its Price-To-Earnings Ratio (12.7x) compared to the North American Insurance industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is GWO.PRT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GWO.PRT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.7x
Fair PE Ratio	14.3x

Price-To-Earnings vs Fair Ratio: GWO.PRT is good value based on its Price-To-Earnings Ratio (12.7x) compared to the estimated Fair Price-To-Earnings Ratio (14.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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