Sun Life Valuation
| SLF Stock | USD 51.11 0.45 0.89% |
At this time, the company appears to be undervalued. Sun Life Financial has a current Real Value of $53.14 per share. The regular price of the company is $51.11. Our model measures the value of Sun Life Financial from inspecting the company fundamentals such as Shares Outstanding of 582.46 M, return on equity of 0.14, and Operating Margin of 0.11 % as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend locking in undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other. Key fundamental drivers impacting Sun Life's valuation include:
Price Book 1.9036 | Enterprise Value -30.8 B | Price Sales 0.9684 | Forward PE 10.1112 | Trailing PE 13.2618 |
Undervalued
Today
Please note that Sun Life's price fluctuation is very steady at this time. Calculation of the real value of Sun Life Financial is based on 3 months time horizon. Increasing Sun Life's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Sun Life Financial is useful when determining the fair value of the Sun stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Sun Life. Since Sun Life is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Sun Stock. However, Sun Life's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 51.11 | Real 53.14 | Target 54.61 | Hype 50.66 |
The real value of Sun Stock, also known as its intrinsic value, is the underlying worth of Sun Life Financial Company, which is reflected in its stock price. It is based on Sun Life's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Sun Life's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Sun Life's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Sun Life Financial helps investors to forecast how Sun stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Sun Life more accurately as focusing exclusively on Sun Life's fundamentals will not take into account other important factors: Traditionally analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Sun Life's intrinsic value based on its ongoing forecasts of Sun Life's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Sun Life's closest peers. When choosing an evaluation method for Sun Life Financial, ensure it is appropriate for the firm given its current financial situation and market classification. If more than one evaluation category is relevant, we suggest using both methods to arrive at a better estimate.
Sun Life Investments |
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Sun Valuation Trend
Knowing Sun Life's actual value is paramount for traders to make sound investment determinations. Sun Life's real value is not only important for the investor to make better decisions but also for a more accurate overall view of Sun Life's financial worth over time since having this information enables investors and analysts to forecast the earnings more efficiently. Using both Sun Life's enterprise value as well as its market capitalization is the best way to gauging the value of the company and is usually enough for investors to make market timing descisions.
Sun Market Cap
Sun Life Financial is rated fifth in market capitalization category among related companies. Market capitalization of Financials industry is at this time estimated at about 1.1 Trillion. Sun Life holds roughly 29.51 Billion in market capitalization claiming about 2.69% of equities under Financials industry.Sun Life Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Sun Life's current stock value. Our valuation model uses many indicators to compare Sun Life value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Sun Life competition to find correlations between indicators driving Sun Life's intrinsic value. More Info.Sun Life Financial is rated fifth in price to earning category among related companies. It is rated below average in price to book category among related companies fabricating about 0.14 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Sun Life Financial is roughly 7.37 . The current Price To Book Ratio is estimated to decrease to 1.06. Comparative valuation analysis is a catch-all model that can be used if you cannot value Sun Life by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sun Life's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Sun Life's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Sun Life's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Sun Life and how it compares across the competition.
About Sun Life Valuation
The stock valuation mechanism determines the current worth of Sun Life Financial on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Sun Life Financial. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Sun Life Financial based exclusively on its fundamental and basic technical indicators. By analyzing Sun Life's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Sun Life's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Sun Life. We calculate exposure to Sun Life's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Sun Life's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 32.7 B | 25.2 B | |
| Pretax Profit Margin | 0.12 | 0.08 | |
| Operating Profit Margin | 0.12 | 0.08 | |
| Net Profit Margin | 0.10 | 0.06 | |
| Gross Profit Margin | 0.00 | 0.00 |
8 Steps to conduct Sun Life's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Sun Life's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Sun Life's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Sun Life's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Sun Life's revenue streams: Identify Sun Life's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Sun Life's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Sun Life's growth potential: Evaluate Sun Life's management, business model, and growth potential.
- Determine Sun Life's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Sun Life's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
A single share of Sun Life represents a small ownership stake in the entity. As a stockholder of Sun, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Sun Life Dividends Analysis For Valuation
The Sun Life's current Dividend Payout Ratio is estimated to increase to 0.59, while Dividends Paid is forecasted to increase to (1.8 B). . At this time, Sun Life's Price Earnings Ratio is most likely to drop in the upcoming years. The Sun Life's current Price Earnings To Growth Ratio is estimated to increase to 1.67, while Retained Earnings are projected to decrease to roughly 10.3 B.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | -1.9 B | -1.8 B | |
| Dividend Yield | 0.05 | 0.03 | |
| Dividend Payout Ratio | 0.56 | 0.59 | |
| Dividend Paid And Capex Coverage Ratio | 3.28 | 3.12 |
There are various types of dividends Sun Life can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Sun shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Sun Life Financial directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Sun pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Sun Life by the value of the dividends paid out.
Sun Life Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Sun Life does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 589 M | |
| Quarterly Earnings Growth Y O Y | -0.353 | |
| Forward Price Earnings | 10.1112 |
Sun Life Current Valuation Indicators
Valuation refers to the process of determining the present value of Sun Life Financial and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Sun we look at many different elements of the entity such as Sun's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Sun Life's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Sun Life's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Sun Life, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Sun Life's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Sun Life's worth.When determining whether Sun Life Financial is a strong investment it is important to analyze Sun Life's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Sun Life's future performance. For an informed investment choice regarding Sun Stock, refer to the following important reports: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Sun Life Financial. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in bureau of economic analysis. You can also try the Stocks Directory module to find actively traded stocks across global markets.
Complementary Tools for Sun Stock analysis
When running Sun Life's price analysis, check to measure Sun Life's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Sun Life is operating at the current time. Most of Sun Life's value examination focuses on studying past and present price action to predict the probability of Sun Life's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Sun Life's price. Additionally, you may evaluate how the addition of Sun Life to your portfolios can decrease your overall portfolio volatility.
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Is Sun Life's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sun Life. If investors know Sun will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sun Life listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.35) | Dividend Share 3 | Earnings Share 3.82 | Revenue Per Share 52.645 | Return On Assets 0.0079 |
The market value of Sun Life Financial is measured differently than its book value, which is the value of Sun that is recorded on the company's balance sheet. Investors also form their own opinion of Sun Life's value that differs from its market value or its book value, called intrinsic value, which is Sun Life's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sun Life's market value can be influenced by many factors that don't directly affect Sun Life's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sun Life's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sun Life is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sun Life's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.