Power Corporation of Canada

OTCPK:PWCD.F Stock Report

Market Cap: US$21.3b

Power Corporation of Canada Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: PWCD.F ($33.33) is trading below our estimate of fair value ($41.8)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PWCD.F?

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

The above table shows the Price to Earnings ratio for PWCD.F. This is calculated by dividing PWCD.F's market cap by their current earnings.
What is PWCD.F's PE Ratio?
PE Ratio13.1x
EarningsCA$2.29b
Market CapCA$29.75b

Price to Earnings Ratio vs Peers

How does PWCD.F's PE Ratio compare to its peers?

The above table shows the PE ratio for PWCD.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14x
UNM Unum Group
7.8x-3.9%US$13.3b
PRU Prudential Financial
11.1x6.8%US$44.2b
PRI Primerica
14.4x6.8%US$9.8b
LNC Lincoln National
22.6x19.2%US$5.8b
PWCD.F Power Corporation of Canada
13.1x9.1%US$29.8b

Price-To-Earnings vs Peers: PWCD.F is good value based on its Price-To-Earnings Ratio (13.1x) compared to the peer average (14x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
UTGN UTG
2xn/aUS$89.45m
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
PWCD.F 13.1xIndustry Avg. 13.5xNo. of Companies15PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PWCD.F is good value based on its Price-To-Earnings Ratio (13.1x) compared to the US Insurance industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is PWCD.F'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.

PWCD.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.1x
Fair PE Ratio16.4x

Price-To-Earnings vs Fair Ratio: PWCD.F is good value based on its Price-To-Earnings Ratio (13.1x) compared to the estimated Fair Price-To-Earnings Ratio (16.4x).

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 PWCD.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$33.33
US$35.44
+6.3%
6.1%US$39.75US$31.58n/a8
Nov ’25US$31.78
US$32.33
+1.7%
6.1%US$36.54US$30.09n/a8
Oct ’25US$31.51
US$31.76
+0.8%
4.8%US$34.93US$29.42n/a8
Sep ’25US$30.74
US$31.76
+3.3%
4.8%US$34.93US$29.42n/a8
Aug ’25US$28.51
US$31.74
+11.3%
4.2%US$34.39US$30.41n/a9
Jul ’25US$28.04
US$32.02
+14.2%
4.0%US$34.38US$30.72n/a9
Jun ’25US$29.01
US$32.02
+10.4%
4.0%US$34.38US$30.72n/a9
May ’25US$26.96
US$30.94
+14.8%
5.0%US$34.03US$29.28n/a9
Apr ’25US$27.91
US$31.31
+12.2%
4.6%US$34.16US$29.39n/a9
Mar ’25US$28.90
US$30.40
+5.2%
5.8%US$33.19US$28.03n/a9
Feb ’25US$29.23
US$30.53
+4.4%
6.0%US$33.61US$28.38n/a8
Jan ’25US$28.63
US$29.12
+1.7%
4.6%US$32.13US$27.75n/a8
Dec ’24US$27.97
US$29.12
+4.1%
4.6%US$32.13US$27.75n/a8
Nov ’24US$24.39
US$29.21
+19.8%
4.0%US$30.66US$27.41US$31.788
Oct ’24US$25.52
US$31.11
+21.9%
3.5%US$33.13US$29.45US$31.518
Sep ’24US$27.44
US$31.48
+14.7%
3.3%US$33.46US$29.75US$30.749
Aug ’24US$28.51
US$30.68
+7.6%
4.3%US$33.24US$28.71US$28.519
Jul ’24US$26.94
US$29.82
+10.7%
4.9%US$32.58US$27.40US$28.049
Jun ’24US$26.01
US$29.82
+14.6%
4.9%US$32.58US$27.40US$29.019
May ’24US$26.90
US$28.88
+7.4%
4.9%US$32.04US$26.94US$26.969
Apr ’24US$25.53
US$28.88
+13.1%
4.9%US$32.04US$26.94US$27.919
Mar ’24US$26.99
US$27.87
+3.2%
4.0%US$29.42US$25.74US$28.909
Feb ’24US$27.16
US$28.09
+3.4%
4.6%US$30.10US$26.34US$29.239
Jan ’24US$23.53
US$27.22
+15.7%
6.1%US$30.76US$25.63US$28.639
Dec ’23US$25.23
US$27.63
+9.5%
6.1%US$31.22US$26.02US$27.979
Nov ’23US$24.79
US$28.87
+16.4%
8.3%US$32.29US$24.95US$24.399

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

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