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:
We started the process of determining a valid price forecast for Sun Life Financial Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Sun Life Financial Inc ranked in the 48th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 16.17%. The most interesting components of our discounted cash flow analysis for Sun Life Financial Inc ended up being:
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 33.23% of tickers in our DCF set.
Relative to other stocks in its sector (Financial Services), Sun Life Financial Inc has a reliance on debt greater than just 21.93% of them.
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 SLF, try PZN, WLTW, FSAM, BRK.B, and HMN.
Introduction It has been about three months since I last discussed Sun Life Financial (SLF) and I wanted to check up on this Canadian insurance company. I was interested to see if the company was able to boost its profitability after a weak first quarter. Data by YChartsAs Sun Life's...
The Investment Doctor on Seeking Alpha | September 28, 2020
The OAS and CPP will not provide the quality of life that most retiring Canadians expect. Investment income from the Sun Life Financial stock should improve financial well-being in retirement. The post Here’s Why It Will Be Hard to Retire on Your OAS and CPP Pension Alone appeared first on The Motley Fool Canada .
On 7 September 1970 (50 years ago today) I stepped into Sun Life’s offices at 107 Cheapside in the City of London for the first time and started out on a voyage of discovery in the world of pensions and financial services. Fifty years on and the Editor has kindly allowed me to pen three articles – looking at the past, the present and the future – with a particular eye on the SIPP market. I would list the dominant influencing features during my career as: technology, complexity, (inconsistent) government policy, (increasing) longevity and the evolution of Financial Planning. When I started at Sun Life retirement benefit calculations were performed manually on a Monroe Calculator which are now museum pieces. Alacrity and dexterity in the use of a Monroe were KPIs as much as accuracy – all...
As the lead indicators start showing an uptick in the next six months, the banking sector will start to perform better, says CEO, Aditya Birla Sun Life AMCWhen do you think banking stocks will start moving higher because there is a technical overhang, there is an economy overhang and there is an NPA concern?We are doing some kind of analysis with respect to the profit contribution to the Nifty versus the market contribution. The profit contribution coming from the banking sector which owns about 33% of the index is only about 22%. So, that has dropped significantly. Naturally the market cap of these companies in the last one, two, three years got destroyed because profit contribution did not keep pace with increase in the market cap. The market got corrected as a result of that. But hav...