Sun Life Financial Inc.

DB:LIE Stock Report

Market Cap: €32.5b

Sun Life Financial Valuation

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

Below Fair Value: LIE (€56.5) is trading below our estimate of fair value (€144.97)

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 Ratio13.7x
EarningsCA$3.56b
Market CapCA$48.70b

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 Average15.2x
WUW Wüstenrot & Württembergische
25.3x34.6%€1.1b
HNR1 Hannover Rück
13.1x5.7%€29.5b
TLX Talanx
10.9x5.7%€20.6b
MUV2 Münchener Rückversicherungs-Gesellschaft in München
11.4x2.9%€65.1b
LIE Sun Life Financial
13.7x6.8%€48.7b

Price-To-Earnings vs Peers: LIE is good value based on its Price-To-Earnings Ratio (13.7x) compared to the peer average (15.2x).

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 13.7xIndustry Avg. 11.8xNo. of Companies14PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LIE is expensive based on its Price-To-Earnings Ratio (13.7x) compared to the European Insurance industry average (11.8x).

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 Ratio13.7x
Fair PE Ratio11.5x

Price-To-Earnings vs Fair Ratio: LIE is expensive based on its Price-To-Earnings Ratio (13.7x) 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€56.50
€58.39
+3.4%
9.1%€64.95€44.65n/a13
Dec ’25€58.00
€58.39
+0.7%
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€38.13€58.0013
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 04:20
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Sun Life Financial Inc. is covered by 31 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jacob KilsteinArgus Research Company
John EadeArgus Research Company
Ishan MajumdarBaptista Research