Great-West Lifeco Inc. (GWO.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-86.3%

CA$12.60

vs CA$91.82 price

Levered DCF

-CA$11.46

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.19

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	15.78×	11.27×	14.92×	8.11×	11.26×	9.57×	13.36×	9×
P/B	2.09×	1.5×	1.52×	1.01×	1.3×	1.17×	1.39×	1.14×
P/S	1.6×	1.28×	1.11×	-10.83×	0.55×	0.46×	0.7×	0.63×
EV / EBITDA	12.01×	7.61×	10.91×	6.86×	8.52×	8.14×	9.42×	7.7×
Gross margin	33.6%	38.6%	30.3%	-410.7%	20.1%	18.5%	24.1%	25.3%
Operating margin	12.0%	-6.0%	-9.1%	-150.9%	6.0%	5.1%	6.4%	7.9%
Net margin	10.5%	11.7%	7.8%	-138.4%	5.1%	5.1%	5.6%	7.0%
Current ratio	5.8×	7.78×	6.65×	6.14×	5.86×	3.12×	2.68×	2.38×
Debt / equity	0.45×	0.35×	0.36×	0.39×	0.36×	0.45×	0.31×	0.28×
Interest coverage	12.39×	-5.15×	-7.83×	10.34×	11.08×	10.04×	9.38×	15.67×
Dividend yield	3.9%	4.9%	5.1%	6.7%	5.1%	6.2%	5.4%	6.0%
Payout ratio	58.6%	54.0%	72.1%	52.5%	55.5%	57.2%	67.9%	54.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	13.8%	13.8%	10.7%	12.8%	12.0%	12.8%	11.0%	12.6%
Return on invested capital	0.5%	-0.2%	-0.5%	2.0%	2.1%	1.7%	1.7%	2.0%
Return on assets	0.5%	0.5%	0.4%	0.5%	0.5%	0.5%	0.6%	0.7%
Free cash flow yield	4.3%	10.7%	12.7%	24.2%	29.4%	34.1%	19.4%	16.4%
Earnings yield	6.6%	9.2%	7.0%	12.8%	9.2%	10.9%	7.9%	11.1%
Enterprise value	CA$67.8B	CA$45.1B	CA$43.5B	CA$34B	CA$40.2B	CA$30.9B	CA$33.8B	CA$30.6B
Net debt / EBITDA	0.93×	0.11×	0.65×	0.98×	1.05×	0.73×	0.65×	0.69×
Cash conversion cycle (days)	171	9	12	73	-17	-20	-36	-250