Assessing Manulife (TSX:MFC) Valuation Following Strong Shareholder Returns and Steady Growth

Manulife Financial (TSX:MFC) has drawn investor attention lately, as its stock continues to outperform the market over the past month and year. Recent moves in share price suggest growing interest in the company’s underlying business trends.

See our latest analysis for Manulife Financial.

Shares of Manulife Financial have kept their momentum, with the latest share price at $45.67 and a notable 6.1% gain over the past month. While recent weeks have drawn positive attention, the real story is in the strong long-term performance, with total shareholder return of nearly 15% for the past year and over 223% over five years. This signals both steady growth and investor confidence in the company’s outlook.

If Manulife’s sustained rally has you curious about broader opportunities, this is a great moment to broaden your search and discover fast growing stocks with high insider ownership

With strong returns and steady growth, investors may wonder if Manulife Financial still offers value at these levels or if recent gains mean the market has already factored in its future potential. Is this a new buying opportunity, or has future growth been priced in?

Most Popular Narrative: 5.2% Undervalued

The most widely followed narrative pegs Manulife Financial’s fair value at $48.20, a modest premium to its last close of $45.67. The market appears to be slowly catching up with the company’s robust growth outlook.

Manulife's strong and accelerating growth in new business across Asia and the U.S., with over 30% year-over-year increase in new business CSM and double-digit APE sales growth, suggests that the company is benefiting from expanding middle-class wealth and a rising demand for insurance and retirement solutions in growth markets. This is likely to support sustained top-line revenue growth and future earnings power.

Read the complete narrative.

Curious what financial projections are fueling this higher price estimate? The story is built around bold growth assumptions, with a twist in the profit margin outlook and future multiples. Want to see every moving part that analysts are betting on? Dive into the full narrative for the numbers behind the optimism.

Result: Fair Value of $48.20 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, potential regulatory changes in Asia or rising credit risks could challenge the optimistic growth narrative and shift sentiment around Manulife’s outlook.

Find out about the key risks to this Manulife Financial narrative.

Build Your Own Manulife Financial Narrative

If you see things differently or want to dig deeper into the numbers, you can craft your personal view in just a few minutes, and Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Manulife Financial.

Looking for more investment ideas?

Don’t let incredible opportunities pass you by. Use the Simply Wall St Screener to handpick stocks tailored to your investment goals and uncover tomorrow’s winners today.

• Unlock passive income streams by reviewing these 17 dividend stocks with yields > 3%, which offers impressive yields and solid long-term prospects.
• Capitalize on major shifts in medicine and innovation through these 33 healthcare AI stocks, a group at the forefront of digital healthcare and AI diagnostics.
• Position yourself for growth by checking out these 877 undervalued stocks based on cash flows, which are priced well below their intrinsic value right now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com