Intrinsic value of Sun Life Financial - SLF

Previous Close

$39.62

  Intrinsic Value

$147.63

stock screener

  Rating & Target

str. buy

+273%

  Value-price divergence*

-121%

Previous close

$39.62

 
Intrinsic value

$147.63

 
Up/down potential

+273%

 
Rating

str. buy

 
Value-price divergence*

-121%

Our model is not good at valuating stocks of financial companies, such as SLF.

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of SLF stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 24.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  48.24
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  0
  21,571
  22,067
  22,634
  23,271
  23,976
  24,751
  25,593
  26,506
  27,489
  28,544
  29,672
  30,877
  32,159
  33,522
  34,968
  36,500
  38,122
  39,838
  41,650
  43,564
  45,583
  47,713
  49,957
  52,322
  54,813
  57,436
  60,196
  63,101
  66,157
  69,371
Variable operating expenses, $m
 
  17,961
  18,365
  18,827
  19,345
  19,920
  20,550
  21,237
  21,980
  22,780
  23,639
  24,165
  25,146
  26,190
  27,300
  28,477
  29,725
  31,046
  32,443
  33,919
  35,478
  37,122
  38,857
  40,685
  42,611
  44,639
  46,775
  49,023
  51,389
  53,878
  56,496
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  18,365
  17,961
  18,365
  18,827
  19,345
  19,920
  20,550
  21,237
  21,980
  22,780
  23,639
  24,165
  25,146
  26,190
  27,300
  28,477
  29,725
  31,046
  32,443
  33,919
  35,478
  37,122
  38,857
  40,685
  42,611
  44,639
  46,775
  49,023
  51,389
  53,878
  56,496
Operating income, $m
  2,784
  3,610
  3,702
  3,808
  3,926
  4,057
  4,200
  4,357
  4,526
  4,709
  4,904
  5,507
  5,731
  5,969
  6,222
  6,490
  6,775
  7,076
  7,394
  7,731
  8,086
  8,461
  8,856
  9,272
  9,711
  10,174
  10,660
  11,173
  11,712
  12,279
  12,876
EBITDA, $m
  2,784
  4,125
  4,219
  4,328
  4,450
  4,584
  4,732
  4,894
  5,068
  5,256
  5,458
  5,674
  5,904
  6,149
  6,410
  6,686
  6,979
  7,289
  7,617
  7,964
  8,330
  8,716
  9,123
  9,552
  10,004
  10,481
  10,982
  11,510
  12,065
  12,650
  13,264
Interest expense (income), $m
  181
  226
  227
  388
  571
  778
  1,007
  1,258
  1,531
  1,827
  2,146
  2,488
  2,854
  3,245
  3,661
  4,103
  4,572
  5,068
  5,595
  6,151
  6,739
  7,359
  8,014
  8,705
  9,433
  10,200
  11,008
  11,858
  12,754
  13,696
  14,687
Earnings before tax, $m
  2,550
  3,384
  3,476
  3,420
  3,354
  3,279
  3,194
  3,099
  2,995
  2,881
  2,758
  3,019
  2,877
  2,724
  2,561
  2,388
  2,203
  2,007
  1,800
  1,580
  1,347
  1,101
  841
  567
  278
  -26
  -347
  -686
  -1,042
  -1,417
  -1,811
Tax expense, $m
  458
  914
  938
  923
  906
  885
  862
  837
  809
  778
  745
  815
  777
  736
  692
  645
  595
  542
  486
  426
  364
  297
  227
  153
  75
  0
  0
  0
  0
  0
  0
Net income, $m
  2,092
  2,471
  2,537
  2,497
  2,449
  2,393
  2,331
  2,262
  2,186
  2,103
  2,014
  2,204
  2,100
  1,989
  1,870
  1,743
  1,608
  1,465
  1,314
  1,153
  983
  804
  614
  414
  203
  -26
  -347
  -686
  -1,042
  -1,417
  -1,811

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  191,134
  194,333
  198,803
  203,912
  209,648
  216,004
  222,978
  230,571
  238,792
  247,647
  257,151
  267,319
  278,168
  289,720
  301,997
  315,024
  328,829
  343,443
  358,897
  375,225
  392,466
  410,658
  429,843
  450,065
  471,372
  493,812
  517,439
  542,308
  568,478
  596,009
  624,967
Adjusted assets (=assets-cash), $m
  191,134
  194,333
  198,803
  203,912
  209,648
  216,004
  222,978
  230,571
  238,792
  247,647
  257,151
  267,319
  278,168
  289,720
  301,997
  315,024
  328,829
  343,443
  358,897
  375,225
  392,466
  410,658
  429,843
  450,065
  471,372
  493,812
  517,439
  542,308
  568,478
  596,009
  624,967
Revenue / Adjusted assets
  0.000
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
  0.111
Average production assets, $m
  1,178
  1,208
  1,236
  1,268
  1,303
  1,343
  1,386
  1,433
  1,484
  1,539
  1,598
  1,662
  1,729
  1,801
  1,877
  1,958
  2,044
  2,135
  2,231
  2,332
  2,440
  2,553
  2,672
  2,798
  2,930
  3,070
  3,216
  3,371
  3,534
  3,705
  3,885
Working capital, $m
  0
  345
  353
  362
  372
  384
  396
  409
  424
  440
  457
  475
  494
  515
  536
  559
  584
  610
  637
  666
  697
  729
  763
  799
  837
  877
  919
  963
  1,010
  1,059
  1,110
Total debt, $m
  5,649
  5,666
  9,688
  14,287
  19,449
  25,169
  31,446
  38,280
  45,678
  53,649
  62,202
  71,353
  81,118
  91,514
  102,563
  114,288
  126,712
  139,864
  153,773
  168,469
  183,985
  200,358
  217,624
  235,825
  255,000
  275,197
  296,461
  318,843
  342,396
  367,174
  393,237
Total liabilities, $m
  174,884
  174,900
  178,922
  183,521
  188,683
  194,403
  200,680
  207,514
  214,912
  222,883
  231,436
  240,587
  250,352
  260,748
  271,797
  283,522
  295,946
  309,098
  323,007
  337,703
  353,219
  369,592
  386,858
  405,059
  424,234
  444,431
  465,695
  488,077
  511,630
  536,408
  562,471
Total equity, $m
  16,251
  19,433
  19,880
  20,391
  20,965
  21,600
  22,298
  23,057
  23,879
  24,765
  25,715
  26,732
  27,817
  28,972
  30,200
  31,502
  32,883
  34,344
  35,890
  37,523
  39,247
  41,066
  42,984
  45,007
  47,137
  49,381
  51,744
  54,231
  56,848
  59,601
  62,497
Total liabilities and equity, $m
  191,135
  194,333
  198,802
  203,912
  209,648
  216,003
  222,978
  230,571
  238,791
  247,648
  257,151
  267,319
  278,169
  289,720
  301,997
  315,024
  328,829
  343,442
  358,897
  375,226
  392,466
  410,658
  429,842
  450,066
  471,371
  493,812
  517,439
  542,308
  568,478
  596,009
  624,968
Debt-to-equity ratio
  0.348
  0.290
  0.490
  0.700
  0.930
  1.170
  1.410
  1.660
  1.910
  2.170
  2.420
  2.670
  2.920
  3.160
  3.400
  3.630
  3.850
  4.070
  4.280
  4.490
  4.690
  4.880
  5.060
  5.240
  5.410
  5.570
  5.730
  5.880
  6.020
  6.160
  6.290
Adjusted equity ratio
  0.085
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,092
  2,471
  2,537
  2,497
  2,449
  2,393
  2,331
  2,262
  2,186
  2,103
  2,014
  2,204
  2,100
  1,989
  1,870
  1,743
  1,608
  1,465
  1,314
  1,153
  983
  804
  614
  414
  203
  -26
  -347
  -686
  -1,042
  -1,417
  -1,811
Depreciation, amort., depletion, $m
  0
  514
  517
  520
  524
  528
  532
  537
  542
  547
  553
  166
  173
  180
  188
  196
  204
  213
  223
  233
  244
  255
  267
  280
  293
  307
  322
  337
  353
  370
  388
Funds from operations, $m
  568
  2,985
  3,054
  3,017
  2,972
  2,921
  2,863
  2,799
  2,728
  2,651
  2,567
  2,370
  2,273
  2,169
  2,057
  1,939
  1,813
  1,679
  1,537
  1,386
  1,227
  1,059
  881
  694
  496
  281
  -26
  -349
  -688
  -1,046
  -1,423
Change in working capital, $m
  -2,147
  7
  8
  9
  10
  11
  12
  13
  15
  16
  17
  18
  19
  21
  22
  23
  25
  26
  27
  29
  31
  32
  34
  36
  38
  40
  42
  44
  46
  49
  51
Cash from operations, $m
  2,715
  2,978
  3,046
  3,008
  2,962
  2,910
  2,851
  2,786
  2,714
  2,635
  2,550
  2,352
  2,254
  2,148
  2,036
  1,916
  1,788
  1,653
  1,509
  1,357
  1,197
  1,027
  847
  658
  458
  241
  -68
  -393
  -735
  -1,095
  -1,474
Maintenance CAPEX, $m
  0
  -118
  -121
  -124
  -127
  -130
  -134
  -139
  -143
  -148
  -154
  -160
  -166
  -173
  -180
  -188
  -196
  -204
  -213
  -223
  -233
  -244
  -255
  -267
  -280
  -293
  -307
  -322
  -337
  -353
  -370
New CAPEX, $m
  -97
  -30
  -28
  -32
  -36
  -40
  -43
  -47
  -51
  -55
  -59
  -63
  -67
  -72
  -76
  -81
  -86
  -91
  -96
  -101
  -107
  -113
  -119
  -126
  -132
  -139
  -147
  -155
  -163
  -171
  -180
Cash from investing activities, $m
  -1,401
  -148
  -149
  -156
  -163
  -170
  -177
  -186
  -194
  -203
  -213
  -223
  -233
  -245
  -256
  -269
  -282
  -295
  -309
  -324
  -340
  -357
  -374
  -393
  -412
  -432
  -454
  -477
  -500
  -524
  -550
Free cash flow, $m
  1,314
  2,830
  2,898
  2,852
  2,800
  2,740
  2,673
  2,600
  2,519
  2,432
  2,337
  2,129
  2,020
  1,904
  1,779
  1,647
  1,507
  1,358
  1,200
  1,033
  856
  670
  473
  265
  46
  -192
  -522
  -869
  -1,235
  -1,620
  -2,025
Issuance/(repayment) of debt, $m
  -161
  17
  4,023
  4,598
  5,162
  5,720
  6,276
  6,835
  7,398
  7,970
  8,554
  9,151
  9,764
  10,396
  11,049
  11,724
  12,425
  13,152
  13,908
  14,696
  15,517
  16,373
  17,266
  18,200
  19,176
  20,197
  21,264
  22,382
  23,552
  24,778
  26,062
Issuance/(repurchase) of shares, $m
  29
  712
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  232
  480
  741
  1,015
  1,304
  1,608
  1,927
  2,270
  2,710
  3,173
  3,659
  4,170
  4,707
Cash from financing (excl. dividends), $m  
  -347
  729
  4,023
  4,598
  5,162
  5,720
  6,276
  6,835
  7,398
  7,970
  8,554
  9,151
  9,764
  10,396
  11,049
  11,724
  12,425
  13,152
  14,140
  15,176
  16,258
  17,388
  18,570
  19,808
  21,103
  22,467
  23,974
  25,555
  27,211
  28,948
  30,769
Total cash flow (excl. dividends), $m
  793
  3,558
  6,920
  7,451
  7,962
  8,460
  8,950
  9,434
  9,917
  10,402
  10,891
  11,280
  11,784
  12,300
  12,828
  13,372
  13,931
  14,510
  15,340
  16,208
  17,114
  18,058
  19,043
  20,073
  21,150
  22,275
  23,453
  24,686
  25,976
  27,328
  28,745
Retained Cash Flow (-), $m
  -523
  -3,182
  -447
  -511
  -574
  -636
  -697
  -759
  -822
  -886
  -950
  -1,017
  -1,085
  -1,155
  -1,228
  -1,303
  -1,381
  -1,461
  -1,545
  -1,633
  -1,724
  -1,819
  -1,918
  -2,022
  -2,131
  -2,270
  -2,710
  -3,173
  -3,659
  -4,170
  -4,707
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  376
  6,474
  6,940
  7,389
  7,825
  8,252
  8,675
  9,095
  9,516
  9,940
  10,263
  10,700
  11,145
  11,601
  12,069
  12,551
  13,048
  13,795
  14,576
  15,390
  16,239
  17,125
  18,051
  19,019
  20,005
  20,743
  21,513
  22,318
  23,159
  24,038
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  360
  5,926
  6,040
  6,084
  6,065
  5,989
  5,861
  5,685
  5,467
  5,211
  4,874
  4,566
  4,237
  3,895
  3,543
  3,189
  2,839
  2,540
  2,244
  1,956
  1,680
  1,421
  1,183
  969
  778
  605
  462
  345
  253
  181
Current shareholders' claim on cash, %
  100
  97.2
  97.2
  97.2
  97.2
  97.2
  97.2
  97.2
  97.2
  97.2
  97.2
  97.2
  97.2
  97.2
  97.2
  97.2
  97.2
  97.2
  96.7
  95.9
  94.6
  93.0
  91.1
  88.9
  86.4
  83.8
  80.8
  77.6
  74.3
  70.9
  67.3

Sun Life Financial Inc. is the holding company of Sun Life Assurance Company of Canada. The Company is a financial services company providing a range of insurance, wealth and asset management solutions to individuals and corporate Clients. It operates through five segments. The Sun Life Financial Canada segment provides retail insurance and investment advice, products and services to people across Canada. The SLF U.S. segment has three business units: Group Benefits, International and In-force Management. Its Sun Life Financial Asset Management segment consists of MFS Investment Management and Sun Life Investment Management. The SLF Asia segment operates through subsidiaries in the Philippines, Hong Kong, Indonesia and Vietnam, as well as through joint ventures and associates with local partners in the Philippines, India, China and Malaysia. Its Corporate segment includes SLF U.K. and Corporate Support. Corporate Support operations consist of its Run-off reinsurance business.

FINANCIAL RATIOS  of  Sun Life Financial (SLF)

Valuation Ratios
P/E Ratio 11.6
Price to Sales 1.1
Price to Book 1.5
Price to Tangible Book
Price to Cash Flow 9
Price to Free Cash Flow 9.3
Growth Rates
Sales Growth Rate 48.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 24.4%
Cap. Spend. - 3 Yr. Gr. Rate 14.2%
Financial Strength
Quick Ratio 0
Current Ratio NaN
LT Debt to Equity 32.7%
Total Debt to Equity 34.8%
Interest Coverage 15
Management Effectiveness
Return On Assets 1.2%
Ret/ On Assets - 3 Yr. Avg. 1.1%
Return On Total Capital 10.2%
Ret/ On T. Cap. - 3 Yr. Avg. 8.8%
Return On Equity 13.1%
Return On Equity - 3 Yr. Avg. 11.6%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 0%
Gross Margin - 3 Yr. Avg. 0%
EBITDA Margin 12.9%
EBITDA Margin - 3 Yr. Avg. 13.2%
Operating Margin 13.2%
Oper. Margin - 3 Yr. Avg. 13.5%
Pre-Tax Margin 12.1%
Pre-Tax Margin - 3 Yr. Avg. 12.1%
Net Profit Margin 9.9%
Net Profit Margin - 3 Yr. Avg. 9.7%
Effective Tax Rate 18%
Eff/ Tax Rate - 3 Yr. Avg. 19.8%
Payout Ratio 38%

SLF stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SLF stock intrinsic value calculation we used $21148 million for the last fiscal year's total revenue generated by Sun Life Financial. The default revenue input number comes from 2016 income statement of Sun Life Financial. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our SLF stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for SLF is calculated based on our internal credit rating of Sun Life Financial, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Sun Life Financial.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of SLF stock the variable cost ratio is equal to 83.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for SLF stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4% for Sun Life Financial.

Corporate tax rate of 27% is the nominal tax rate for Sun Life Financial. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the SLF stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SLF are equal to 5.6%.

Life of production assets of 10 years is the average useful life of capital assets used in Sun Life Financial operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for SLF is equal to 1.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $16251 million for Sun Life Financial - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 616.71 million for Sun Life Financial is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Sun Life Financial at the current share price and the inputted number of shares is $24.4 billion.

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COMPANY NEWS

▶ Top Ranked Income Stocks to Buy for August 11th   [Aug-11-17 08:51AM  Zacks]
▶ /DISREGARD RELEASE: Sun Life Financial/   [12:02PM  PR Newswire]
▶ Sun Life Financial announces election of directors   [May-10-17 02:30PM  CNW Group]
▶ Sun Life posts 1Q profit   [05:03AM  Associated Press]
▶ Sun Life Financial increases dividend   [05:02PM  PR Newswire]
▶ Sun Life Financial increases dividend   [05:02PM  CNW Group]
Financial statements of SLF
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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