We’ve recently updated our valuation analysis.

Great-West Lifeco Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

GWO 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/Revenue0.8x
Enterprise Value/EBITDA10.6x
PEG Ratio2.7x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.3x
POW Power Corporation of Canada
11.7x7.1%CA$24.1b
SLF Sun Life Financial
12.2x7.1%CA$38.8b
MFC Manulife Financial
6.7x-3.9%CA$48.7b
IAG iA Financial
10.7x5.1%CA$8.5b
GWO Great-West Lifeco
11x4.1%CA$32.7b

Price-To-Earnings vs Peers: GWO is expensive based on its Price-To-Earnings Ratio (11x) compared to the peer average (10.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.6%
n/an/an/a

Price-To-Earnings vs Industry: GWO is good value based on its Price-To-Earnings Ratio (11x) compared to the North American Insurance industry average (14.6x)


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 Ratio11x
Fair PE Ratio11.3x

Price-To-Earnings vs Fair Ratio: GWO is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (11.3x).


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$35.05) is trading below our estimate of fair value (CA$68.85)

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


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$35.05
CA$34.55
-1.4%
4.2%CA$37.00CA$32.00n/a11
Jan ’24CA$31.30
CA$33.30
+6.4%
8.6%CA$40.00CA$30.00n/a10
Dec ’23CA$31.51
CA$33.30
+5.7%
8.6%CA$40.00CA$30.00n/a10
Nov ’23CA$31.72
CA$34.70
+9.4%
10.3%CA$42.00CA$31.00n/a10
Oct ’23CA$29.82
CA$36.80
+23.4%
8.0%CA$42.00CA$32.00n/a10
Sep ’23CA$30.65
CA$36.80
+20.1%
8.0%CA$42.00CA$32.00n/a10
Aug ’23CA$31.12
CA$36.50
+17.3%
10.7%CA$42.00CA$27.00n/a10
Jul ’23CA$31.43
CA$38.40
+22.2%
10.6%CA$44.00CA$28.00n/a10
Jun ’23CA$33.62
CA$38.90
+15.7%
7.8%CA$44.00CA$32.00n/a10
May ’23CA$35.44
CA$40.60
+14.6%
3.8%CA$44.00CA$38.00n/a10
Apr ’23CA$36.54
CA$42.40
+16.0%
5.1%CA$46.00CA$39.00n/a10
Mar ’23CA$37.33
CA$42.30
+13.3%
5.4%CA$46.00CA$39.00n/a10
Feb ’23CA$39.81
CA$41.20
+3.5%
5.0%CA$46.00CA$39.00n/a10
Jan ’23CA$37.96
CA$40.89
+7.7%
4.1%CA$44.00CA$39.00CA$31.309
Dec ’22CA$36.86
CA$40.80
+10.7%
3.9%CA$44.00CA$39.00CA$31.5110
Nov ’22CA$36.68
CA$40.00
+9.1%
3.5%CA$43.00CA$38.00CA$31.7211
Oct ’22CA$38.64
CA$40.00
+3.5%
3.0%CA$42.00CA$38.00CA$29.8211
Sep ’22CA$38.18
CA$40.00
+4.8%
3.0%CA$42.00CA$38.00CA$30.6511
Aug ’22CA$37.54
CA$39.18
+4.4%
2.6%CA$41.00CA$37.00CA$31.1211
Jul ’22CA$36.82
CA$37.70
+2.4%
3.4%CA$40.00CA$36.00CA$31.4310
Jun ’22CA$36.87
CA$37.70
+2.3%
3.4%CA$40.00CA$36.00CA$33.6210
May ’22CA$35.64
CA$35.55
-0.3%
4.1%CA$37.00CA$33.00CA$35.4410
Apr ’22CA$33.57
CA$33.65
+0.2%
5.9%CA$37.00CA$31.00CA$36.5410
Mar ’22CA$33.28
CA$33.55
+0.8%
5.4%CA$36.50CA$31.00CA$37.3310
Feb ’22CA$29.22
CA$33.20
+13.6%
5.7%CA$37.00CA$31.00CA$39.8110
Jan ’22CA$30.35
CA$30.50
+0.5%
9.8%CA$36.00CA$25.00CA$37.9610

Analyst Forecast: Target price is lower than the current share price.


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