Great-West Lifeco Inc.

DB:GWS Stock Report

Market Cap: €31.9b

Great-West Lifeco Valuation

Is GWS 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 GWS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GWS (€34) is trading below our estimate of fair value (€88.51)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GWS?

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

The above table shows the Price to Earnings ratio for GWS. This is calculated by dividing GWS's market cap by their current earnings.
What is GWS's PE Ratio?
PE Ratio12.7x
EarningsCA$3.64b
Market CapCA$46.37b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for GWS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.3x
WUW Wüstenrot & Württembergische
25.8x34.6%€1.1b
HNR1 Hannover Rück
13.2x5.7%€29.8b
TLX Talanx
10.9x5.0%€20.6b
MUV2 Münchener Rückversicherungs-Gesellschaft in München
11.2x2.9%€64.1b
GWS Great-West Lifeco
12.7x5.2%€46.4b

Price-To-Earnings vs Peers: GWS is good value based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (15.3x).

Price to Earnings Ratio vs Industry

How does GWS's PE Ratio compare vs other companies in the European Insurance Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
GWS 12.7xIndustry Avg. 11.8xNo. of Companies12PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GWS is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the European Insurance industry average (11.8x).

Price to Earnings Ratio vs Fair Ratio

What is GWS'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.

GWS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.7x
Fair PE Ratio11.2x

Price-To-Earnings vs Fair Ratio: GWS is expensive based on its Price-To-Earnings Ratio (12.7x) compared to the estimated Fair Price-To-Earnings Ratio (11.2x).

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 GWS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€34.00
€33.19
-2.4%
7.6%€36.88€27.49n/a10
Nov ’25€30.60
€31.31
+2.3%
6.1%€33.78€27.16n/a11
Oct ’25€30.40
€29.44
-3.2%
4.3%€31.38€27.38n/a11
Sep ’25€29.20
€29.49
+1.0%
4.4%€31.36€27.35n/a10
Aug ’25€27.60
€29.03
+5.2%
4.3%€30.63€26.64n/a10
Jul ’25€27.00
€29.95
+10.9%
4.2%€31.24€27.16n/a10
Jun ’25€27.80
€29.95
+7.7%
4.2%€31.24€27.16n/a10
May ’25€27.60
€29.83
+8.1%
4.1%€31.40€27.31n/a10
Apr ’25€29.20
€29.58
+1.3%
4.0%€31.21€27.14n/a10
Mar ’25€28.40
€29.74
+4.7%
5.1%€31.52€26.04n/a10
Feb ’25€30.80
€29.52
-4.1%
5.0%€31.66€26.16n/a9
Jan ’25€29.60
€28.02
-5.3%
5.1%€30.77€25.42n/a9
Dec ’24€29.20
€28.02
-4.0%
5.1%€30.77€25.42n/a9
Nov ’24€26.00
€27.75
+6.7%
4.2%€30.02€25.93€30.609
Oct ’24€27.40
€28.55
+4.2%
4.5%€30.64€26.46€30.409
Sep ’24€26.40
€27.89
+5.6%
4.7%€29.86€25.11€29.2011
Aug ’24€27.20
€27.38
+0.7%
3.0%€28.28€25.52€27.6010
Jul ’24€26.20
€27.43
+4.7%
3.4%€29.24€25.76€27.0010
Jun ’24€26.40
€26.88
+1.8%
5.2%€29.02€23.49€27.8011
May ’24€25.60
€25.35
-1.0%
3.6%€26.90€24.21€27.6010
Apr ’24€24.00
€25.14
+4.8%
5.7%€27.12€21.69€29.2011
Mar ’24€25.80
€25.90
+0.4%
5.9%€28.07€22.45€28.4011
Feb ’24€24.20
€24.04
-0.7%
5.0%€26.17€22.03€30.8011
Jan ’24€21.60
€22.97
+6.3%
8.6%€27.59€20.69€29.6010
Dec ’23€22.80
€24.80
+8.8%
8.6%€29.79€22.34€29.2010
Nov ’23€23.40
€25.78
+10.2%
10.3%€31.21€23.03€26.0010

Analyst Forecast: Target price is lower than the current share price.

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