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Sun Life Financial (TSX:SLF) Cyclically Adjusted Price-to-FCF : 11.40 (As of Apr. 28, 2024)


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What is Sun Life Financial Cyclically Adjusted Price-to-FCF?

As of today (2024-04-28), Sun Life Financial's current share price is C$70.67. Sun Life Financial's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was C$6.20. Sun Life Financial's Cyclically Adjusted Price-to-FCF for today is 11.40.

The historical rank and industry rank for Sun Life Financial's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

TSX:SLF' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 10.38   Med: 14.63   Max: 25.55
Current: 11.41

During the past years, Sun Life Financial's highest Cyclically Adjusted Price-to-FCF was 25.55. The lowest was 10.38. And the median was 14.63.

TSX:SLF's Cyclically Adjusted Price-to-FCF is ranked worse than
51.54% of 324 companies
in the Insurance industry
Industry Median: 11.03 vs TSX:SLF: 11.41

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Sun Life Financial's adjusted free cash flow per share data for the three months ended in Dec. 2023 was C$5.780. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is C$6.20 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Sun Life Financial Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Sun Life Financial's Cyclically Adjusted Price-to-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.

Sun Life Financial Cyclically Adjusted Price-to-FCF Chart

Sun Life Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.88 11.50 16.30 12.10 11.09

Sun Life Financial Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-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 12.10 12.47 12.92 11.88 11.09

Competitive Comparison of Sun Life Financial's Cyclically Adjusted Price-to-FCF

For the Insurance - Diversified subindustry, Sun Life Financial's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-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.


Sun Life Financial's Cyclically Adjusted Price-to-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Sun Life Financial's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Sun Life Financial's Cyclically Adjusted Price-to-FCF falls into.



Sun Life Financial Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Sun Life Financial's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=70.67/6.2
=11.40

* 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.

Sun Life Financial's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Sun Life Financial's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=5.78/125.4675*125.4675
=5.780

Current CPI (Dec. 2023) = 125.4675.

Sun Life Financial Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.256 98.604 0.326
201406 1.167 99.473 1.472
201409 1.504 99.394 1.899
201412 -0.103 98.367 -0.131
201503 1.409 99.789 1.772
201506 0.888 100.500 1.109
201509 2.008 100.421 2.509
201512 2.743 99.947 3.443
201603 0.487 101.054 0.605
201606 2.105 102.002 2.589
201609 0.982 101.765 1.211
201612 2.141 101.449 2.648
201703 -1.068 102.634 -1.306
201706 2.053 103.029 2.500
201709 0.953 103.345 1.157
201712 0.974 103.345 1.183
201803 0.699 105.004 0.835
201806 0.613 105.557 0.729
201809 1.782 105.636 2.117
201812 3.028 105.399 3.605
201903 -2.090 106.979 -2.451
201906 3.144 107.690 3.663
201909 0.274 107.611 0.319
201912 2.679 107.769 3.119
202003 -0.326 107.927 -0.379
202006 5.190 108.401 6.007
202009 5.282 108.164 6.127
202012 1.902 108.559 2.198
202103 -1.727 110.298 -1.965
202106 0.405 111.720 0.455
202109 1.467 112.905 1.630
202112 -3.427 113.774 -3.779
202203 -0.831 117.646 -0.886
202206 3.367 120.806 3.497
202209 3.129 120.648 3.254
202212 1.552 120.964 1.610
202303 -0.081 122.702 -0.083
202306 0.419 124.203 0.423
202309 3.148 125.230 3.154
202312 5.780 125.468 5.780

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Sun Life Financial  (TSX:SLF) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Sun Life Financial Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Sun Life Financial's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Sun Life Financial (TSX:SLF) Business Description

Address
1 York Street, 31st Floor, Toronto, ON, CAN, M5J 0B6
Sun Life provides life insurance, retirement, and asset management products to individuals and corporate customers in Canada, the United States, and Asia. The company's investment management business contributes approximately 38% of its adjusted earnings and has around CAD 1 trillion in assets under management as of the second quarter of 2023. The Canada business contributes about 32% of adjusted earnings and provides individual life and health insurance, group insurance, retirement services, and wealth management solutions. The U.S. business contributes approximately 14% of earnings and is mainly focused on providing group insurance products and managing the in-force life insurance policies. Finally, the Asia segment contributes around 16% of earnings.