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Great-West Lifeco (Great-West Lifeco) Intrinsic Value: Projected FCF : $68.62 (As of Apr. 24, 2024)


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What is Great-West Lifeco Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-24), Great-West Lifeco's Intrinsic Value: Projected FCF is $68.62. The stock price of Great-West Lifeco is $29.41. Therefore, Great-West Lifeco's Price-to-Intrinsic-Value-Projected-FCF of today is 0.4.

The historical rank and industry rank for Great-West Lifeco's Intrinsic Value: Projected FCF or its related term are showing as below:

GWLIF' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.32   Med: 0.43   Max: 0.53
Current: 0.43

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Great-West Lifeco was 0.53. The lowest was 0.32. And the median was 0.43.

GWLIF's Price-to-Projected-FCF is ranked better than
72.7% of 392 companies
in the Insurance industry
Industry Median: 0.66 vs GWLIF: 0.43

Great-West Lifeco Intrinsic Value: Projected FCF Historical Data

The historical data trend for Great-West Lifeco's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Great-West Lifeco Intrinsic Value: Projected FCF Chart

Great-West Lifeco Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 62.53 71.54 85.39 70.23 71.30

Great-West Lifeco Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 70.23 67.37 67.77 65.15 71.30

Competitive Comparison of Great-West Lifeco's Intrinsic Value: Projected FCF

For the Insurance - Life subindustry, Great-West Lifeco's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Great-West Lifeco's Price-to-Projected-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Great-West Lifeco's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Great-West Lifeco's Price-to-Projected-FCF falls into.



Great-West Lifeco Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Great-West Lifeco's Free Cash Flow(6 year avg) = $5,383.41.

Great-West Lifeco's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*5383.41344+20002.982*0.8)/934.757
=71.95

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Great-West Lifeco  (OTCPK:GWLIF) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Great-West Lifeco's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=29.41/71.948511041097
=0.41

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Great-West Lifeco Intrinsic Value: Projected FCF Related Terms

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Great-West Lifeco (Great-West Lifeco) Business Description

Address
100 Osborne Street North, Winnipeg, MB, CAN, R3C 1V3
Great-West Lifeco provides life insurance, health insurance, retirement products, asset management, recordkeeping services, and reinsurance products in Canada, the United States, and Europe. The Canada business contributes approximately 35% of adjusted earnings and has leading market positions in group insurance, group retirement, and individual insurance. The company operates the second-largest recordkeeping business under the Empower brand in the United States, with an earnings contribution from the country approximating 20%. Great-West Lifeco also offers various products across Europe markets with a strong presence in the U.K., Ireland, and Germany. The Europe segment contributes around 28% of adjusted earnings and the reinsurance business accounts for around 17% of adjusted earnings.