Sun Life Financial SLF provides protection and wealth products and services to individuals and corporate customers worldwide. It operates through Sun Life Financial Canada, Sun Life Financial United States, MFS Investment Management, and Sun Life Financial Asia segments. The company provides permanent life, participating life, term life, universal life, critical illness, long-term care, and personal health insurance. The company was founded in 1999 and is based in Toronto, Canada.
SLF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for SLF, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Sun Life Financial Inc ranked in the 53th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 66.5%. As for the metrics that stood out in our discounted cash flow analysis of Sun Life Financial Inc, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 86. Its equity weight surpasses that of 73.93% of free cash flow generating stocks in the Financial Services sector.
SLF's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 41.59% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CBOE, KMPR, AFL, WRB, and AJG can be thought of as valuation peers to SLF, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.