Manulife Financial (TSX:MFC): Valuation Check After Strong Q3 2025 Earnings Beat and AM Best Rating Reaffirmation

Manulife Financial (TSX:MFC) just posted stronger than expected third quarter 2025 core earnings, powered by double digit growth in Asia, and then received a vote of confidence as AM Best reaffirmed its superior credit ratings.

See our latest analysis for Manulife Financial.

Those solid results and the AM Best reaffirmation help explain why the share price has climbed to $49.44, with a strong 90 day share price return of 15.76% and an impressive 5 year total shareholder return of 183.87%. This suggests momentum is still building rather than fading.

If Manulife’s trajectory has you thinking about where else capital is quietly compounding, this is a good moment to explore stable growth stocks screener (None results).

Yet with the stock hovering just below analyst targets, but still trading at a steep discount to some intrinsic value estimates, is Manulife quietly undervalued here, or is the market already pricing in its next leg of growth?

Most Popular Narrative Narrative: 4.8% Undervalued

With Manulife closing at CA$49.44 against a narrative fair value of roughly CA$51.94, the storyline leans toward modest upside still on the table.

The acquisition of Comvest Credit Partners meaningfully scales Manulife's private markets platform and introduces high-growth, fee-based private credit capabilities. By leveraging Manulife's global distribution, especially into Asia's fast-growing wealth pools, this is expected to drive a higher mix of stable, capital-light fee income, which may improve net margins and support core EPS and ROE growth.

Read the complete narrative.

Curious how steady fee income, shifting margins and a future earnings multiple come together to justify that valuation gap? The full narrative unpacks the precise growth math.

Result: Fair Value of $51.94 (UNDERVALUED)

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

However, sustained earnings momentum could be challenged if Asian growth slows or if credit losses in below-investment-grade loans and legacy real estate worsen.

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

Another View: Market Multiples Paint a Tighter Picture

On a simple price to earnings basis, Manulife looks less generous. The stock trades around 15.4 times earnings, slightly richer than both North American insurance peers at 13.5 times and its own 16 times fair ratio, which hints more at valuation risk than a clear bargain.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Manulife Financial Narrative

If you see the story differently or would rather dig into the numbers yourself, you can build a custom view in just minutes using Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Manulife Financial.

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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.

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