Manulife (TSX:MFC): Assessing Valuation After a 13% Three-Month Share Price Climb

Manulife Financial (TSX:MFC) has quietly pushed higher over the past 3 months, helped by solid double digit revenue and earnings growth. This has put the stock back on the radar for dividend focused investors.

See our latest analysis for Manulife Financial.

Zooming out, the share price has climbed meaningfully over the past year, with a 90 day share price return of 13.25%, while the three year total shareholder return above 100% shows that momentum has been building for some time.

If Manulife’s run has you rethinking your income ideas, this could be a good moment to explore pharma stocks with solid dividends as a source of potential complementary dividend opportunities.

Yet despite the rally, Manulife still trades at a hefty intrinsic discount and below consensus price targets. This raises the key question: is this a rare value entry point, or is the market already baking in years of growth?

Most Popular Narrative Narrative: 6.6% Undervalued

With Manulife’s fair value estimate sitting above the last close of CA$48.46, the prevailing narrative leans toward upside potential rather than complacency.

The company's exposure to major retirement savings gaps, especially in developed and Asian markets with aging populations, aligns with increasing demand for annuity, pension, and asset management products. This provides a long-term tailwind for recurring revenue growth and supports future expansion of assets under management.

Read the complete narrative.

Curious how this demand wave turns into a higher valuation, the narrative leans on aggressive revenue compounding, shifting profit margins, and a future earnings multiple that may surprise you.

Result: Fair Value of $51.87 (UNDERVALUED)

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

However, two clouds could challenge that view: softer Asian growth amid regulatory shifts, and rising credit losses tied to below investment grade and legacy real estate exposures.

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

Build Your Own Manulife Financial Narrative

If you see things differently or would rather dive into the numbers yourself, you can build a personalised Manulife view in just minutes: 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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