Great-West Lifeco Inc.

TSX:GWO Stock Report

Market Cap: CA$45.3b

Great-West Lifeco Valuation

Is GWO 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 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GWO (CA$48.82) is trading below our estimate of fair value (CA$117.46)

Significantly Below Fair Value: GWO 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?

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

The above table shows the Price to Earnings ratio for GWO. This is calculated by dividing GWO's market cap by their current earnings.
What is GWO's PE Ratio?
PE Ratio12.5x
EarningsCA$3.64b
Market CapCA$45.34b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GWO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14x
POW Power Corporation of Canada
13.3x9.1%CA$30.0b
MFC Manulife Financial
15.6x13.4%CA$79.1b
SLF Sun Life Financial
14.1x6.8%CA$49.6b
IAG iA Financial
12.9x7.5%CA$12.7b
GWO Great-West Lifeco
12.5x5.2%CA$45.3b

Price-To-Earnings vs Peers: GWO is good value based on its Price-To-Earnings Ratio (12.5x) compared to the peer average (14x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GWO 12.5xIndustry Avg. 13.2xNo. of Companies16PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GWO is good value based on its Price-To-Earnings Ratio (12.5x) compared to the North American Insurance industry average (13.2x).

Price to Earnings Ratio vs Fair Ratio

What is GWO'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 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.5x
Fair PE Ratio13.4x

Price-To-Earnings vs Fair Ratio: GWO is good value based on its Price-To-Earnings Ratio (12.5x) compared to the estimated Fair Price-To-Earnings Ratio (13.4x).

Analyst Price Targets

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

The above table shows the analyst GWO forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$48.82
CA$49.50
+1.4%
7.6%CA$55.00CA$41.00n/a10
Nov ’25CA$46.86
CA$47.27
+0.9%
6.1%CA$51.00CA$41.00n/a11
Oct ’25CA$46.00
CA$44.09
-4.2%
4.3%CA$47.00CA$41.00n/a11
Sep ’25CA$44.30
CA$44.20
-0.2%
4.4%CA$47.00CA$41.00n/a10
Aug ’25CA$41.32
CA$43.60
+5.5%
4.3%CA$46.00CA$40.00n/a10
Jul ’25CA$39.91
CA$44.10
+10.5%
4.2%CA$46.00CA$40.00n/a10
Jun ’25CA$40.88
CA$44.10
+7.9%
4.2%CA$46.00CA$40.00n/a10
May ’25CA$40.76
CA$43.70
+7.2%
4.1%CA$46.00CA$40.00n/a10
Apr ’25CA$43.30
CA$43.60
+0.7%
4.0%CA$46.00CA$40.00n/a10
Mar ’25CA$41.93
CA$43.40
+3.5%
5.1%CA$46.00CA$38.00n/a10
Feb ’25CA$44.59
CA$42.89
-3.8%
5.0%CA$46.00CA$38.00n/a9
Jan ’25CA$43.86
CA$41.89
-4.5%
5.1%CA$46.00CA$38.00n/a9
Dec ’24CA$43.70
CA$41.89
-4.1%
5.1%CA$46.00CA$38.00CA$50.419
Nov ’24CA$39.03
CA$40.67
+4.2%
4.2%CA$44.00CA$38.00CA$46.869
Oct ’24CA$38.86
CA$41.00
+5.5%
4.5%CA$44.00CA$38.00CA$46.009
Sep ’24CA$39.47
CA$41.09
+4.1%
4.7%CA$44.00CA$37.00CA$44.3011
Aug ’24CA$39.95
CA$39.70
-0.6%
3.0%CA$41.00CA$37.00CA$41.3210
Jul ’24CA$38.47
CA$39.40
+2.4%
3.4%CA$42.00CA$37.00CA$39.9110
Jun ’24CA$38.51
CA$38.91
+1.0%
5.2%CA$42.00CA$34.00CA$40.8811
May ’24CA$38.74
CA$37.70
-2.7%
3.6%CA$40.00CA$36.00CA$40.7610
Apr ’24CA$35.82
CA$37.09
+3.5%
5.7%CA$40.00CA$32.00CA$43.3011
Mar ’24CA$37.51
CA$36.91
-1.6%
5.9%CA$40.00CA$32.00CA$41.9311
Feb ’24CA$34.96
CA$34.91
-0.1%
5.0%CA$38.00CA$32.00CA$44.5911
Jan ’24CA$31.30
CA$33.30
+6.4%
8.6%CA$40.00CA$30.00CA$43.8610
Dec ’23CA$31.51
CA$33.30
+5.7%
8.6%CA$40.00CA$30.00CA$43.7010

Analyst Forecast: Target price is less than 20% higher than the current share price.

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