Sun Life Financial Inc. (SLF) 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

+316.2%

$337.65

vs $81.14 price

Levered DCF

$366.33

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.49

Distress zone

Rating

B-

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	13.9×	16.13×	13.1×	12.83×	10.46×	13.8×	13.38×	9.42×
P/B	1.94×	1.89×	1.68×	1.62×	1.57×	1.28×	1.43×	1.16×
P/S	1.16×	1.43×	1.11×	10.74×	1.16×	0.77×	0.88×	1.02×
EV / EBITDA	10.93×	11.21×	9.97×	9.35×	6.68×	7.74×	9.47×	6.64×
Gross margin	100.0%	14.0%	11.9%	118.7%	41.2%	28.5%	28.2%	40.3%
Operating margin	11.4%	12.6%	10.8%	105.7%	14.3%	7.6%	8.1%	13.0%
Net margin	8.9%	9.2%	9.2%	88.2%	12.2%	6.4%	7.4%	10.8%
Current ratio	2.78×	0×	0×	0×	5.96×	0×	0×	5.36×
Debt / equity	0.74×	0.65×	0.64×	0.68×	0.39×	0.34×	0.37×	0.28×
Interest coverage	9.12×	6.53×	7.12×	11.05×	15.59×	9.26×	9.71×	11.51×
Dividend yield	4.2%	4.0%	3.5%	4.5%	3.5%	3.2%	3.8%	4.5%
Payout ratio	55.1%	61.9%	42.5%	55.3%	32.7%	38.4%	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%	13.9%	13.3%	16.6%	10.8%	12.0%	12.3%
Return on invested capital	1.0%	143.4%	148.9%	131.3%	3.6%	811.6%	2861.2%	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	27.7%	4.8%	19.0%	21.7%	-4.7%	29.1%	6.7%	13.7%
Earnings yield	7.6%	6.4%	8.3%	8.2%	10.6%	8.4%	8.4%	10.6%
Enterprise value	$58.1B	$56.1B	$44.7B	$43B	$39.2B	$31.3B	$37.3B	$26.8B
Net debt / EBITDA	1.71×	1.35×	0.94×	1.34×	-0.35×	-0.46×	0.59×	-0.15×
Cash conversion cycle (days)	97	-2	-4	1,593	-32	-13	-5	-337