Sun Life Financial Inc. (SLF.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

+265.7%

CA$412.52

vs CA$112.79 price

Levered DCF

CA$330.38

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.48

Distress zone

Rating

Overall 3 / 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	13.89×	16.13×	13.02×	12.83×	10.46×	13.77×	13.4×	9.42×
P/B	1.91×	1.9×	1.71×	1.34×	1.57×	1.35×	1.5×	1.16×
P/S	1.25×	1.43×	1.11×	10.74×	1.16×	0.76×	0.88×	1.02×
EV / EBITDA	10.77×	10.85×	8.34×	8.48×	6.69×	6.54×	7.48×	6.64×
Gross margin	13.8%	14.0%	11.9%	118.7%	41.2%	28.5%	28.2%	40.3%
Operating margin	12.5%	12.6%	10.8%	105.7%	14.3%	7.6%	8.1%	13.0%
Net margin	9.7%	9.2%	9.2%	88.2%	12.2%	6.4%	7.4%	10.8%
Current ratio	2.78×	0.9×	3.23×	2.99×	5.96×	5.51×	5.97×	5.36×
Debt / equity	0.74×	0.58×	0.56×	0.49×	0.39×	0.28×	0.17×	0.28×
Interest coverage	9.12×	6.53×	7.12×	8.15×	15.59×	9.26×	9.71×	11.51×
Dividend yield	4.3%	4.0%	4.7%	4.5%	3.5%	4.1%	3.8%	4.5%
Payout ratio	55.1%	61.9%	56.3%	55.3%	32.7%	48.9%	44.8%	42.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	14.8%	12.2%	14.2%	11.0%	16.6%	11.4%	12.6%	12.3%
Return on invested capital	1.0%	0.9%	1.0%	2.8%	3.6%	2.4%	2.8%	3.0%
Return on assets	0.9%	0.9%	1.0%	0.9%	1.3%	0.9%	1.0%	1.1%
Free cash flow yield	5.5%	4.8%	13.5%	21.7%	-4.7%	21.4%	6.9%	13.7%
Earnings yield	7.8%	6.4%	8.3%	8.2%	10.6%	8.4%	8.4%	10.6%
Enterprise value	CA$57.3B	CA$54.3B	CA$42.4B	CA$39B	CA$39.2B	CA$26.5B	CA$29.5B	CA$26.8B
Net debt / EBITDA	1.71×	0.98×	0.41×	0.47×	-0.35×	-1.64×	-1.4×	-0.15×
Cash conversion cycle (days)	83	-2	-4	1,338	-32	-29	-23	-337