Manulife Financial Corporation

TSX:MFC.PRK Stock Report

Market Cap: CA$78.9b

Manulife Financial Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 MFC.PRK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MFC.PRK (CA$24.01) is trading below our estimate of fair value (CA$55.28)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MFC.PRK?

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

The above table shows the Price to Earnings ratio for MFC.PRK. This is calculated by dividing MFC.PRK's market cap by their current earnings.
What is MFC.PRK's PE Ratio?
PE Ratio15.7x
EarningsCA$5.10b
Market CapCA$78.89b

Price to Earnings Ratio vs Peers

How does MFC.PRK's PE Ratio compare to its peers?

The above table shows the PE ratio for MFC.PRK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.2x
GWO Great-West Lifeco
12.8x5.2%CA$46.3b
POW Power Corporation of Canada
13.1x9.1%CA$29.8b
SLF Sun Life Financial
13.9x6.8%CA$49.0b
IAG iA Financial
13.1x7.5%CA$12.5b
MFC.PRK Manulife Financial
15.7x13.4%CA$78.9b

Price-To-Earnings vs Peers: MFC.PRK is expensive based on its Price-To-Earnings Ratio (15.7x) compared to the peer average (13.2x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MFC.PRK 15.7xIndustry Avg. 13.1xNo. of Companies15PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MFC.PRK is expensive based on its Price-To-Earnings Ratio (15.7x) compared to the North American Insurance industry average (13.1x).

Price to Earnings Ratio vs Fair Ratio

What is MFC.PRK'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.

MFC.PRK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio15.7x
Fair PE Ratio16.7x

Price-To-Earnings vs Fair Ratio: MFC.PRK is good value based on its Price-To-Earnings Ratio (15.7x) compared to the estimated Fair Price-To-Earnings Ratio (16.7x).

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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