Sun Life Financial Inc.

DB:LIE Stock Report

Market Cap: €33.4b

Sun Life Financial Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: LIE (€57.5) is trading below our estimate of fair value (€148.63)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LIE. This is calculated by dividing LIE's market cap by their current earnings.
What is LIE's PE Ratio?
PE Ratio13.9x
EarningsCA$3.56b
Market CapCA$48.96b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LIE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.7x
HNR1 Hannover Rück
13.2x5.7%€29.6b
TLX Talanx
10.7x5.0%€20.2b
MUV2 Münchener Rückversicherungs-Gesellschaft in München
11.2x2.9%€63.8b
ALV Allianz
11.9x5.9%€112.3b
LIE Sun Life Financial
13.9x6.8%€49.0b

Price-To-Earnings vs Peers: LIE is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the peer average (11.7x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
LIE 13.9xIndustry Avg. 11.7xNo. of Companies12PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LIE is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the European Insurance industry average (11.7x).

Price to Earnings Ratio vs Fair Ratio

What is LIE'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.

LIE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.9x
Fair PE Ratio11.5x

Price-To-Earnings vs Fair Ratio: LIE is expensive based on its Price-To-Earnings Ratio (13.9x) compared to the estimated Fair Price-To-Earnings Ratio (11.5x).

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 LIE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€57.50
€58.39
+1.6%
9.1%€64.95€44.65n/a13
Nov ’25€51.00
€53.28
+4.5%
7.5%€59.62€43.72n/a14
Oct ’25€52.00
€50.27
-3.3%
5.1%€54.09€44.07n/a14
Sep ’25€49.00
€49.79
+1.6%
5.3%€53.61€43.68n/a13
Aug ’25€44.60
€49.79
+11.6%
4.8%€53.27€43.95n/a13
Jul ’25€45.60
€50.86
+11.5%
5.7%€56.29€44.76n/a13
Jun ’25€45.40
€50.86
+12.0%
5.7%€56.29€44.76n/a13
May ’25€47.60
€51.83
+8.9%
5.4%€56.66€45.06n/a13
Apr ’25€50.50
€51.23
+1.4%
5.3%€56.35€44.81n/a13
Mar ’25€49.00
€51.50
+5.1%
6.0%€56.20€43.18n/a13
Feb ’25€47.40
€50.33
+6.2%
6.2%€54.97€43.29n/a12
Jan ’25€46.40
€47.65
+2.7%
8.2%€52.85€38.13n/a13
Dec ’24€46.40
€47.65
+2.7%
8.2%€52.85€38.13n/a13
Nov ’24€43.40
€49.27
+13.5%
9.2%€54.94€39.64€51.0013
Oct ’24€46.00
€49.45
+7.5%
9.1%€55.02€39.70€52.0013
Sep ’24€45.40
€48.64
+7.1%
8.7%€53.62€38.69€49.0015
Aug ’24€47.60
€50.05
+5.1%
8.5%€54.49€39.31€44.6016
Jul ’24€47.80
€51.26
+7.2%
5.0%€54.99€43.85€45.6014
Jun ’24€45.40
€49.66
+9.4%
6.8%€53.94€40.96€45.4015
May ’24€44.40
€49.37
+11.2%
4.7%€52.45€42.36€47.6014
Apr ’24€42.80
€49.34
+15.3%
6.1%€52.91€42.06€50.5015
Mar ’24€45.60
€50.32
+10.4%
7.0%€54.17€40.97€49.0015
Feb ’24€45.80
€48.06
+4.9%
5.9%€51.64€40.63€47.4015
Jan ’24€43.40
€49.61
+14.3%
6.7%€55.86€43.94€46.4014
Dec ’23€45.20
€49.61
+9.7%
6.7%€55.86€43.94€46.4014
Nov ’23€43.20
€49.30
+14.1%
7.7%€57.96€42.35€43.4013

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

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