We’ve recently updated our valuation analysis.

Sun Life Financial Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 SLF?

Other financial metrics that can be useful for relative valuation.

SLF 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/Revenue1.7x
Enterprise Value/EBITDA8.8x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does SLF's PE Ratio compare to its peers?

The above table shows the PE ratio for SLF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.1x
MFC Manulife Financial
6.8x-3.9%CA$49.5b
GWO Great-West Lifeco
11x4.2%CA$32.5b
POW Power Corporation of Canada
11.7x7.1%CA$23.8b
IAG iA Financial
10.8x5.1%CA$8.6b
SLF Sun Life Financial
12.2x6.9%CA$39.0b

Price-To-Earnings vs Peers: SLF is expensive based on its Price-To-Earnings Ratio (12.2x) compared to the peer average (10.1x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a3.4%
n/an/an/a

Price-To-Earnings vs Industry: SLF is good value based on its Price-To-Earnings Ratio (12.2x) compared to the North American Insurance industry average (14.7x)


Price to Earnings Ratio vs Fair Ratio

What is SLF'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.

SLF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.2x
Fair PE Ratio12x

Price-To-Earnings vs Fair Ratio: SLF is expensive based on its Price-To-Earnings Ratio (12.2x) compared to the estimated Fair Price-To-Earnings Ratio (12x).


Share Price vs Fair Value

What is the Fair Price of SLF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SLF (CA$66.44) is trading below our estimate of fair value (CA$123.55)

Significantly Below Fair Value: SLF 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 SLF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$66.44
CA$70.07
+5.5%
5.4%CA$75.00CA$59.00n/a14
Jan ’24CA$62.85
CA$66.61
+6.0%
6.7%CA$75.00CA$59.00n/a14
Dec ’23CA$63.73
CA$66.61
+4.5%
6.7%CA$75.00CA$59.00n/a14
Nov ’23CA$57.65
CA$66.35
+15.1%
7.7%CA$78.00CA$57.00n/a13
Oct ’23CA$54.93
CA$68.14
+24.1%
6.1%CA$78.00CA$62.00n/a14
Sep ’23CA$57.49
CA$68.14
+18.5%
6.1%CA$78.00CA$62.00n/a14
Aug ’23CA$59.46
CA$67.18
+13.0%
7.4%CA$78.00CA$58.00n/a14
Jul ’23CA$58.98
CA$70.00
+18.7%
5.9%CA$78.00CA$64.00n/a14
Jun ’23CA$62.53
CA$69.92
+11.8%
6.2%CA$78.00CA$64.00n/a13
May ’23CA$63.91
CA$75.04
+17.4%
4.7%CA$80.00CA$66.00n/a13
Apr ’23CA$69.81
CA$76.96
+10.2%
5.5%CA$84.00CA$66.00n/a13
Mar ’23CA$65.04
CA$77.27
+18.8%
4.5%CA$84.00CA$70.00n/a13
Feb ’23CA$72.70
CA$77.73
+6.9%
5.3%CA$86.00CA$70.00n/a13
Jan ’23CA$70.41
CA$75.58
+7.3%
5.1%CA$81.00CA$68.00CA$62.8513
Dec ’22CA$67.56
CA$75.73
+12.1%
4.9%CA$81.00CA$68.00CA$63.7313
Nov ’22CA$70.78
CA$74.29
+5.0%
3.8%CA$78.00CA$68.00CA$57.6514
Oct ’22CA$65.06
CA$71.73
+10.3%
4.7%CA$77.00CA$64.00CA$54.9315
Sep ’22CA$65.02
CA$71.73
+10.3%
4.7%CA$77.00CA$64.00CA$57.4915
Aug ’22CA$64.98
CA$71.67
+10.3%
5.7%CA$78.00CA$62.00CA$59.4615
Jul ’22CA$63.92
CA$70.57
+10.4%
6.3%CA$78.00CA$61.00CA$58.9814
Jun ’22CA$65.21
CA$70.57
+8.2%
6.3%CA$78.00CA$61.00CA$62.5314
May ’22CA$66.31
CA$70.57
+6.4%
6.6%CA$78.00CA$61.00CA$63.9114
Apr ’22CA$64.04
CA$68.57
+7.1%
4.9%CA$75.00CA$61.00CA$69.8114
Mar ’22CA$61.63
CA$68.36
+10.9%
5.1%CA$75.00CA$61.00CA$65.0414
Feb ’22CA$60.05
CA$65.46
+9.0%
6.5%CA$73.00CA$58.00CA$72.7014
Jan ’22CA$56.60
CA$61.93
+9.4%
4.7%CA$68.00CA$57.00CA$70.4114

Analyst Forecast: Target price is less than 20% higher than the current share price.


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