Sun Life Financial Inc.

NYSE:SLF Stock Report

Market Cap: US$35.2b

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

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

Below Fair Value: SLF ($61.18) is trading below our estimate of fair value ($143.01)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SLF. This is calculated by dividing SLF's market cap by their current earnings.
What is SLF's PE Ratio?
PE Ratio13.8x
EarningsCA$3.56b
Market CapCA$49.24b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.1x
PRU Prudential Financial
11.2x6.8%US$45.5b
AFL Aflac
16.4x-1.7%US$62.4b
MET MetLife
16.8x13.2%US$60.0b
UNM Unum Group
7.9x-3.9%US$13.8b
SLF Sun Life Financial
13.8x6.8%US$49.2b

Price-To-Earnings vs Peers: SLF is expensive based on its Price-To-Earnings Ratio (13.8x) compared to the peer average (13.1x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UTGN UTG
2xn/aUS$89.08m
AORE.F American Overseas Group
2.1xn/aUS$16.68m
CUII China United Insurance Service
0.0003xn/aUS$3.13k
No more companies available in this PE range
SLF 13.8xIndustry Avg. 13.7xNo. of Companies15PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SLF is expensive based on its Price-To-Earnings Ratio (13.8x) compared to the US Insurance industry average (13.7x).

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 Ratio13.8x
Fair PE Ratio16.2x

Price-To-Earnings vs Fair Ratio: SLF is good value based on its Price-To-Earnings Ratio (13.8x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).

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 SLF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$61.18
US$61.39
+0.3%
9.1%US$68.28US$46.95n/a13
Nov ’25US$55.60
US$57.86
+4.1%
7.5%US$64.74US$47.48n/a14
Oct ’25US$58.02
US$55.71
-4.0%
5.1%US$59.94US$48.84n/a14
Sep ’25US$54.52
US$54.85
+0.6%
5.3%US$59.05US$48.12n/a13
Aug ’25US$48.53
US$54.06
+11.4%
4.8%US$57.84US$47.72n/a13
Jul ’25US$48.72
US$54.87
+12.6%
5.7%US$60.72US$48.28n/a13
Jun ’25US$50.13
US$54.87
+9.4%
5.7%US$60.72US$48.28n/a13
May ’25US$51.49
US$55.57
+7.9%
5.4%US$60.75US$48.31n/a13
Apr ’25US$53.96
US$55.83
+3.5%
5.3%US$61.40US$48.83n/a13
Mar ’25US$53.51
US$55.74
+4.2%
6.0%US$60.81US$46.72n/a13
Feb ’25US$51.96
US$54.71
+5.3%
6.2%US$59.75US$47.05n/a12
Jan ’25US$51.86
US$52.00
+0.3%
8.2%US$57.67US$41.61n/a13
Dec ’24US$50.99
US$52.00
+2.0%
8.2%US$57.67US$41.61n/a13
Nov ’24US$46.12
US$52.04
+12.8%
9.2%US$58.03US$41.87US$55.6013
Oct ’24US$48.80
US$52.27
+7.1%
9.1%US$58.16US$41.97US$58.0213
Sep ’24US$49.02
US$52.90
+7.9%
8.7%US$58.31US$42.07US$54.5215
Aug ’24US$52.30
US$55.03
+5.2%
8.5%US$59.91US$43.23US$48.5316
Jul ’24US$52.12
US$55.83
+7.1%
5.0%US$59.90US$47.77US$48.7214
Jun ’24US$48.94
US$54.01
+10.4%
6.8%US$58.66US$44.56US$50.1315
May ’24US$49.01
US$54.24
+10.7%
4.7%US$57.61US$46.53US$51.4914
Apr ’24US$46.70
US$53.25
+14.0%
6.1%US$57.11US$45.40US$53.9615
Mar ’24US$48.75
US$53.38
+9.5%
7.0%US$57.46US$43.46US$53.5115
Feb ’24US$50.48
US$52.13
+3.3%
5.9%US$56.02US$44.07US$51.9615
Jan ’24US$46.42
US$49.42
+6.5%
6.7%US$55.65US$43.78US$51.8614
Dec ’23US$47.43
US$49.42
+4.2%
6.7%US$55.65US$43.78US$50.9914
Nov ’23US$42.29
US$48.70
+15.2%
7.7%US$57.26US$41.84US$46.1213

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

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