Manulife Financial Corporation provides financial protection and wealth management products and services to individual, corporate, and business customers primarily in Asia, Canada, and the United States. It offers various individual life and health insurance, and individual and group long-term care insurance products. The company was founded in 1887 and is based in Toronto, Canada.
MFC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MFC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Manulife Financial Corp ranked in the 85th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Manulife Financial Corp ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 4.63; that's higher than 52.3% of US stocks in the Financial Services sector that have positive free cash flow.
Manulife Financial Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 11.46% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as MFC, try PSEC, AINC, CNO, RM, and GAIN.
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