Johnson & Johnson (JNJ:NYS) and Suncor Energy (SU:TSE) Upgraded

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Upgraded Stocks on NYSE, NASDAQ, AMEX, TSE, and TSX

Today we are looking at companies whose share price has been upgraded by at least one analyst in the last few days.

Why Do Companies Get Upgraded?

Companies can get upgraded for a number of reasons, but primarily due to improved future earnings potential due to new contracts, new products, cost savings or restructuring.

In the list below you can see the number of analysts we have in the StockCalc database along with the number of buy-hold-sell on the company.

Today’s Data on NYSE, NASDAQ, AMEX, TSE, and TSX

Below we have today’s data for companies listed on all of the New York Stock Exchange, NASDAQ Stock Exchange, American Stock Exchange, Toronto Stock Exchange, and TSX Venture Exchange.

New York Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
JNJ Johnson & Johnson 4 0 3 0 0 0 4.1429 4.0000 Outperform
SU Suncor Energy Inc 9 4 4 0 0 0 4.2941 4.1765 Outperform
JCI Johnson Controls International PLC 2 1 0 0 1 0 3.7500 3.6000 Outperform
HLT Hilton Worldwide Holdings Inc 3 0 2 0 0 0 4.2000 3.8000 Outperform
IEX IDEX Corp 1 0 5 0 0 0 3.3333 3.2857 Hold
ANDX Andeavor Logistics LP 1 1 1 0 1 0 3.2500 3.0000 Hold
WCC WESCO International Inc 2 0 3 0 0 0 3.8000 3.6667 Outperform
Toronto Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
SU Suncor Energy Inc 9 4 4 0 0 0 4.2941 4.1765 Outperform
GWO Great-West Lifeco Inc 2 0 7 0 0 0 3.4444 3.2222 Hold
IMO Imperial Oil Ltd 0 2 9 0 4 0 2.6000 2.4667 Hold
HNL Horizon North Logistics Inc 6 4 0 0 0 0 4.6000 4.5714 Buy
CRH CRH Medical Corp 5 4 1 0 0 0 4.4000 4.3333 Outperform
CORV Correvio Pharma Corp 4 1 0 0 0 0 4.8000 4.6667 Buy
BOS Airboss of America Corp 1 2 2 0 0 0 3.8000 3.7500 Outperform
American Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
IMO Imperial Oil Ltd 0 2 9 0 4 0 2.6000 2.4667 Hold
CRHM CRH Medical Corp 5 4 1 0 0 0 4.4000 4.3333 Outperform
NBY NovaBay Pharmaceuticals Inc 1 0 0 0 0 0 5.0000 4.0000 Buy
NASDAQ
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
PCAR PACCAR Inc 2 0 4 0 0 0 3.6667 3.3333 Outperform
HSIC Henry Schein Inc 2 0 2 0 1 0 3.4000 3.3333 Hold
PDCO Patterson Companies Inc 2 1 1 0 0 0 4.2500 4.0000 Outperform
CORV Correvio Pharma Corp 4 1 0 0 0 0 4.8000 4.6667 Buy

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

JNJ:NYS Johnson & Johnson

http://www.jnj.com
Johnson & Johnson has 135100 employees and is headquartered in United States.
Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of products in the health care field within its Consumer, Pharmaceutical and Medical Devices segments.

SU:TSE Suncor Energy

http://www.suncor.com
Suncor Energy has 12480 employees and is headquartered in Canada.
Suncor Energy Inc is a Canadian integrated energy company. It operations include oil sands development and upgrading, offshore oil and gas production, petroleum refining, product marketing and a renewable energy portfolio.

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Run a valuation on any of the companies listed above at www.stockcalc.com/valureport.aspx or subscribe at our Stockcalc Facebook Page to receive this list each day Stockcalc Reports.

The content presented here is in part from the website stockcalc.com and is provided on an as is or as available basis with all faults and may not be current in all cases. You should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment decision.

NVIDIA (NVDA:NAS) and Canadian Pacific Railway (CP:TSE) Downgraded

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I have used the analysis tools on the website stockcalc.com to generate some of the content of this blog post. These tools and reports are available for free at www.stockcalc.com/toppicks.aspx.

Downgraded Stocks on NYSE, NASDAQ, AMEX, TSE, and TSX

Today we are looking at companies whose share price has been downgraded by at least one analyst in the last few days.

Why Do Companies Get Downgraded?

Companies can get downgraded for a number of reasons but primarily due to reduced future earnings potential due to loss of contracts, faultering product lines, increasing costs relative to revenue or financial risk.

In the list below you can see the number of analysts we have in the StockCalc database along with the number of buy-hold-sell on the company.

Today’s Data on NYSE, NASDAQ, AMEX, TSE, and TSX

Below we have today’s data for companies listed on all of the New York Stock Exchange, NASDAQ Stock Exchange, American Stock Exchange, Toronto Stock Exchange, and TSX Venture Exchange.

New York Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
PM Philip Morris International Inc 3 1 1 0 1 0 3.8333 4.0000 Outperform
CP Canadian Pacific Railway Ltd 11 7 1 0 0 0 4.5263 4.6316 Buy
HPE Hewlett Packard Enterprise Co 2 0 3 0 1 0 3.3333 3.6667 Hold
Toronto Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
CP Canadian Pacific Railway Ltd 11 7 1 0 0 0 4.5263 4.6316 Buy
GWO Great-West Lifeco Inc 1 0 8 0 0 0 3.2222 3.2500 Hold
PWF Power Financial Corp 1 1 3 0 0 0 3.6000 3.7500 Outperform
POW Power Corporation of Canada 1 1 3 0 0 0 3.6000 3.7500 Outperform
EMP.A Empire Co Ltd 3 1 4 0 0 0 3.8750 4.0000 Outperform
FCR First Capital Realty Inc 1 2 0 0 0 0 4.3333 4.5000 Outperform
AP.UN Allied Properties Real Estate Investment Trust 4 4 2 0 0 0 4.2000 4.2222 Outperform
KMP.UN Killam Apartment Real Estate Investment Trust 5 3 3 0 0 0 4.1818 4.2000 Outperform
SCL Shawcor Ltd 4 2 1 0 0 0 4.4286 4.5000 Outperform
DEE Delphi Energy Corp 1 3 5 0 0 0 3.5556 3.6000 Outperform
NASDAQ
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
NVDA NVIDIA Corp 7 0 1 1 0 0 4.4444 4.5000 Outperform
MELI MercadoLibre Inc 1 0 0 1 0 0 3.5000 4.3333 Hold
CCOI Cogent Communications Holdings Inc 1 0 2 0 0 0 3.6667 4.0000 Outperform
EPAY Bottomline Technologies Inc 1 0 2 0 0 0 3.6667 3.7500 Outperform

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

NVDA:NAS NVIDIA

http://www.nvidia.com
NVIDIA has 13277 employees and is headquartered in United States.
NVIDIA Corp is a developer of graphics processing unit. It caters to areas like gaming, professional visualization, datacenter and automobiles.

CP:TSE Canadian Pacific Railway

http://www.cpr.ca
Canadian Pacific Railway has 12770 employees and is headquartered in Canada.
Canadian Pacific Railway Ltd is engaged in rail transportation. It provides freight transportation services, logistics solutions, and supply chain expertise in Canada and the United States.

Free Valuation

Run a valuation on any of the companies listed above at www.stockcalc.com/valureport.aspx or subscribe at our Stockcalc Facebook Page to receive this list each day Stockcalc Reports.

The content presented here is in part from the website stockcalc.com and is provided on an as is or as available basis with all faults and may not be current in all cases. You should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment decision.

Workday (WDAY:NAS) and Great-West Lifeco (GWO:TSE) Upgraded

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I have used the analysis tools on the website stockcalc.com to generate some of the content of this blog post. These tools and reports are available for free at www.stockcalc.com/toppicks.aspx.

Upgraded Stocks on NYSE, NASDAQ, AMEX, TSE, and TSX

Today we are looking at companies whose share price has been upgraded by at least one analyst in the last few days.

Why Do Companies Get Upgraded?

Companies can get upgraded for a number of reasons, but primarily due to improved future earnings potential due to new contracts, new products, cost savings or restructuring.

In the list below you can see the number of analysts we have in the StockCalc database along with the number of buy-hold-sell on the company.

Today’s Data on NYSE, NASDAQ, AMEX, TSE, and TSX

Below we have today’s data for companies listed on all of the New York Stock Exchange, NASDAQ Stock Exchange, American Stock Exchange, Toronto Stock Exchange, and TSX Venture Exchange.

New York Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
RJF Raymond James Financial Inc 2 1 2 0 0 0 4.0000 3.7500 Outperform
BEP Brookfield Renewable Partners LP 2 0 7 0 1 0 3.2000 3.1818 Hold
FTCH Farfetch Ltd 3 0 0 1 0 0 4.2500 4.0000 Outperform
IGT International Game Technology PLC 3 0 1 0 0 0 4.5000 4.3333 Outperform
CCO Clear Channel Outdoor Holdings Inc 1 0 0 0 0 0 5.0000 3.0000 Buy
HBM Hudbay Minerals Inc 4 5 6 0 0 0 3.8667 3.7333 Outperform
HTZ Hertz Global Holdings Inc 1 0 0 0 0 0 5.0000 3.0000 Buy
TLYS Tilly’s Inc 2 0 0 0 0 0 5.0000 4.0000 Buy
APRN Blue Apron Holdings Inc 1 0 2 0 0 0 3.6667 3.4000 Outperform
HZN Horizon Global Corp 1 0 0 0 0 0 5.0000 4.0000 Buy
Toronto Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
GWO Great-West Lifeco Inc 1 0 7 0 0 0 3.2500 3.2222 Hold
PWF Power Financial Corp 1 1 2 0 0 0 3.7500 3.6667 Outperform
BEP.UN Brookfield Renewable Partners LP 2 0 7 0 1 0 3.2000 3.1818 Hold
POW Power Corporation of Canada 1 1 2 0 0 0 3.7500 3.6667 Outperform
WFT West Fraser Timber Co.Ltd 3 1 2 0 0 0 4.1667 3.8333 Outperform
OGC OceanaGold Corp 3 5 3 0 2 0 3.5385 3.4615 Outperform
BYD.UN Boyd Group Income Fund 5 6 1 0 0 0 4.3333 4.2727 Outperform
HBM Hudbay Minerals Inc 4 5 6 0 0 0 3.8667 3.7333 Outperform
CFP Canfor Corp 3 3 2 0 0 0 4.1250 3.8750 Outperform
IFP Interfor Corp 4 2 0 0 0 0 4.6667 4.3333 Buy
AFN Ag Growth International Inc 3 4 0 0 0 0 4.4286 4.3333 Outperform
MAL Magellan Aerospace Corp 2 0 0 0 0 0 5.0000 4.6667 Buy
III Imperial Metals Corp 1 0 3 0 1 0 3.0000 2.6000 Hold
AKT.B Akita Drilling Ltd 1 0 1 0 0 0 4.0000 3.0000 Outperform
AKT.A Akita Drilling Ltd 1 0 1 0 0 0 4.0000 3.0000 Outperform
PHO Photon Control Inc 1 1 0 0 0 0 4.5000 4.3333 Outperform
TOS TSO3 Inc 1 1 1 0 0 0 4.0000 3.7500 Outperform
TSX Venture Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
TVL Traverse Energy Ltd 0 0 2 0 0 0 3.0000 2.0000 Hold
American Stock Exchange
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
SDPI Superior Drilling Products Inc 1 0 0 0 0 0 5.0000 3.0000 Buy
NASDAQ
Symbol Name Buy Out Perform Hold Under Perform Sell No Opinion Mean Rating Prev Mean Rating Mean Label
WDAY Workday Inc 5 1 1 1 2 0 3.6000 3.5556 Outperform
TRHC Tabula Rasa HealthCare Inc 4 0 0 0 0 0 5.0000 4.7500 Buy
UROV Urovant Sciences Ltd 1 0 0 0 0 0 5.0000 0.0000 Buy
PCOM Points International Ltd 1 1 0 0 0 0 4.5000 4.0000 Outperform
IPIC IPic Entertainment Inc 1 0 0 0 0 0 5.0000 3.0000 Buy
CODX Co-Diagnostics Inc 1 0 0 0 0 0 5.0000 0.0000 Buy

Let’s look at a few companies…

Lets look at a couple of the companies on this list to get a better understanding of them.

WDAY:NAS Workday

http://www.workday.com
Workday has 10200 employees and is headquartered in United States.
Workday Inc is a SaaS provider offering enterprise resource planning, or ERP, software for medium and large enterprises. The company’s product portfolio is built around human capital and financial management software.

GWO:TSE Great-West Lifeco

http://www.greatwestlifeco.com
Great-West Lifeco has 24200 employees and is headquartered in Canada.
Great-West Lifeco Inc is a life insurance company that also offers health insurance, retirement and investment services, asset management and reinsurance businesses. It operates in Canada, U.S. and Europe.

Free Valuation

Run a valuation on any of the companies listed above at www.stockcalc.com/valureport.aspx or subscribe at our Stockcalc Facebook Page to receive this list each day Stockcalc Reports.

The content presented here is in part from the website stockcalc.com and is provided on an as is or as available basis with all faults and may not be current in all cases. You should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment decision.

Manulife Financial (MFC:TSE) Fundamental Valuation Report


This Report was generated using the tools available on StockCalc.com. Patchell Brook Equity Analytics Inc. emphasizes that the user assumes all risks associated with the use of this report or the Stockcalc website including, but not limited to, all terms and conditions mentioned in the legal disclaimer.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.

Manulife Financial $25.08 (CAD) Close Price as of 09/02/2018

Based on the analysis conducted in this report, Manulife Financial, (MFC:TSE) is found to be  Fairly valued to slightly Undervalued.

Company Manulife Financial
Symbol:Exchange MFC:TSE
Industry Financial Services:Insurance-Life
Close Price/Date $25.08 (CAD) 09/02/2018
Weighted Average Valuation $25.84 (CAD)
Summary MFC:TSE is found to be  Fairly valued to slightly Undervalued by 3.0% using the 3 valuation models shown below.
Valuation Models Used Analyst Consensus: $30.44 (CAD)
(in order of importance) Adjusted Book Value: $23.63 (CAD)
Comparables: $16.45 (CAD)
Valuation Methods Analysis This company is:
Cash Flow Basis: Overvalued on a Cash Flow Valuation basis
Comparable Company Basis: Overvalued on a Comparable Valuation basis
Asset Basis: Overvalued on an Asset Valuation basis

Valuation Details

Manulife Financial Valuations

Summary chart

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for MFC:TSE

Using a discounted cash flow model we generated an intrinsic value of $13.40 (CAD) for MFC:TSE

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

MFC:TSE Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $13.40 1% 5% 1% 5%
WACC (or Ke) 10.27 $15.75 $11.62
Terminal Growth Rate 3.00 $11.85 $15.45
Tax Rate 0.10 $14.23 $12.57
Cash Flow 2,562,442,688 $12.65 $14.15
Capital Expenditures 0 $13.40 $13.40
Long Term Debt 0 $13.40 $13.40

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $16.45 (CAD) for MFC:TSE. We also generated a valuation of $22.07 (CAD) using other metrics and comparables.
The comparable companies were Great-West Lifeco (GWO:TSE) and Power Financial (PWF:TSE)

Company MFC:TSE End Date Value
Earnings/Share $0.98 (CAD)
Book Value/Share $19.00 (CAD)
Sales/Share $29.37 (CAD)
Cash Flow/Share $8.96 (CAD)
EBITDA/Share $1.83 (CAD)
Price Based on Comps Adjustment Factor (%)
$13.10 (CAD) 13.8
$28.68 (CAD) -26.2
$18.16 (CAD) 11.7
$38.62 (CAD) -75.6
($2.41) (CAD) 0.0
MFC:TSE Ratios Used Average Values GWO:TSE PWF:TSE
25.59 PE Ratio 13.37 15.65 11.10
1.32 PB Ratio 1.51 1.69 1.33
0.85 PS Ratio 0.62 0.72 0.52
2.80 PCF Ratio 4.31 4.98 3.64
0.00 EV to EBITDA 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $20.71 (CAD) for MFC:TSE

Company MFC:TSE End Date Value
Earnings/Share $0.98 (CAD)
Book Value/Share $19.00 (CAD)
Sales/Share $29.37 (CAD)
Cash Flow/Share $8.96 (CAD)
EBITDA/Share $1.83 (CAD)
Price Based on Comps Adjustment Factor
$14.35 (CAD) 0
$23.49 (CAD) 0
$26.92 (CAD) 0
$29.78 (CAD) 0
$8.97 (CAD) 0
Ratios Ratio Average
PE Ratio 14.65
PB Ratio 1.24
PS Ratio 0.92
PCF Ratio 3.32
EV to EBITDA 4.90

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  MFC:TSE for the last 10 years was  1.24

We ran the Adjusted Book Value for  MFC:TSE and generated a book value of  $19.00 (CAD)
By multiplying these we get an adjusted valuation of  $23.63 (CAD)

Analyst Data

In the Stockcalc database there are 9 analysts that provide a valuation for MFC:TSE. The 9 analysts have a concensus valuation for MFC:TSE for 2018 of $30.44 (CAD).

Company Overview (MFC:TSE CAD)

Price 25.08
Range 24.59 – 25.40
52 week 22.69 – 27.48
Open 25.20
Vol / Avg. 6.46M/3.64M
Mkt cap 49.61B
P/E 25.59
Div/yield 0.88/0.03
EPS 0.98
Shares 1.98B
Beta 1.43
Summary chart

Detailed Company Description

Manulife Financial Corp together with its subsidiaries provides individual life insurance and individual and group long-term care insurance services. Its business segments are Asia Division, Canadian Division, U.S. Division, and Corporate and Other.

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.
The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).
The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.
With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.
If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


The contents of this report and the Stockcalc website are provided on an ‘‘as is’’ or ‘‘as available’’ basis with all faults and may not be current in all cases. The information in this report or on the website is subject to continuous change and Patchell Brook Equity Analytics Inc. assumes no responsibility to update or amend such information or that the information will be current. Patchell Brook Equity Analytics Inc. does not claim that all information, calculations or opinions presented in this report or on its website are true, reliable, or complete. Accordingly, you should not rely on any of the information as authoritative or as a substitute for the exercise of your own skill and judgment in making an investment or other decision. Any information, data, opinions, calculations or recommendations provided by third parties through links to other websites or otherwise made available through this report or website are solely those of the third party and not of Patchell Brook Equity Analytics Inc. Please refer to the Terms of Use on www.stockcalc.com for further information.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.

Manulife Financial (MFC:NYS) Fundamental Valuation Report


This Report was generated using the tools available on StockCalc.com. Patchell Brook Equity Analytics Inc. emphasizes that the user assumes all risks associated with the use of this report or the Stockcalc website including, but not limited to, all terms and conditions mentioned in the legal disclaimer.
To access all of the tools on Stockcalc, including more detailed valuation reports and the models used to generate these valuations, please subscribe for a free 30 day trial of Stockcalc here.

Manulife Financial $25.09 (CAD) / $19.92 (USD) Close Price as of 09/02/2018

Based on the analysis conducted in this report, Manulife Financial, (MFC:NYS) is found to be  Fairly valued to slightly Undervalued. Use a conversion rate of 0.79406989 from CAD to USD.

Company Manulife Financial
Symbol:Exchange MFC:NYS
Industry Financial Services:Insurance-Life
Close Price/Date $25.09 (CAD) / $19.92 (USD) 09/02/2018
Weighted Average Valuation $25.83 (CAD) / $20.51 (USD)
Summary MFC:NYS is found to be  Fairly valued to slightly Undervalued by 3.0% using the 3 valuation models shown below.
Valuation Models Used Analyst Consensus: $30.44 (CAD) / $24.17 (USD)
(in order of importance) Adjusted Book Value: $23.59 (CAD) / $18.73 (USD)
Comparables: $16.44 (CAD) / $13.06 (USD)
Valuation Methods Analysis This company is:
Cash Flow Basis: Overvalued on a Cash Flow Valuation basis
Comparable Company Basis: Overvalued on a Comparable Valuation basis
Asset Basis: Overvalued on an Asset Valuation basis

Valuation Details

Manulife Financial Valuations

Summary chart

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for MFC:NYS

Using a discounted cash flow model we generated an intrinsic value of $10.62 (CAD) / $8.44 (USD) for MFC:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

MFC:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $10.62 1% 5% 1% 5%
WACC (or Ke) 11.96 $12.13 $9.42
Terminal Growth Rate 3.00 $9.61 $11.89
Tax Rate 0.10 $11.30 $9.95
Cash Flow 2,562,442,688 $10.02 $11.23
Capital Expenditures 0 $10.62 $10.62
Long Term Debt 0 $10.62 $10.62

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $16.44 (CAD) / $13.06 (USD) for MFC:NYS. We also generated a valuation of $23.06 (CAD) / $18.31 (USD) using other metrics and comparables.
The comparable companies were Great-West Lifeco (GWO:TSE) and Power Financial (PWF:TSE)

Company MFC:NYS End Date Value
Earnings/Share $0.98 (CAD) / $0.78 (USD)
Book Value/Share $19.00 (CAD) / $15.09 (USD)
Sales/Share $29.37 (CAD) / $23.32 (USD)
Cash Flow/Share $8.96 (CAD) / $7.11 (USD)
EBITDA/Share $1.83 (CAD) / $1.46 (USD)
Price Based on Comps Adjustment Factor (%)
$13.10 (CAD) / $10.41 (USD) 13.6
$28.69 (CAD) / $22.78 (USD) -26.2
$18.16 (CAD) / $14.42 (USD) 11.8
$38.62 (CAD) / $30.67 (USD) -75.6
($2.41) (CAD) / ($1.91) (USD) 0.0
MFC:NYS Ratios Used Average Values GWO:TSE PWF:TSE
25.59 PE Ratio 13.37 15.65 11.10
1.32 PB Ratio 1.51 1.69 1.33
0.85 PS Ratio 0.62 0.72 0.52
2.80 PCF Ratio 4.31 4.98 3.64
0.00 EV to EBITDA 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $20.72 (CAD) / $16.46 (USD) for MFC:NYS

Company MFC:NYS End Date Value
Earnings/Share $0.98 (CAD) / $0.78 (USD)
Book Value/Share $19.00 (CAD) / $15.09 (USD)
Sales/Share $29.37 (CAD) / $23.32 (USD)
Cash Flow/Share $8.96 (CAD) / $7.11 (USD)
EBITDA/Share $1.83 (CAD) / $1.46 (USD)
Price Based on Comps Adjustment Factor
$14.37 (CAD) / $11.41 (USD) 0
$23.47 (CAD) / $18.64 (USD) 0
$26.95 (CAD) / $21.40 (USD) 0
$29.83 (CAD) / $23.68 (USD) 0
$9.00 (CAD) / $7.14 (USD) 0
Ratios Ratio Average
PE Ratio 14.67
PB Ratio 1.24
PS Ratio 0.92
PCF Ratio 3.33
EV to EBITDA 4.91

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  MFC:NYS for the last 10 years was  1.24

We ran the Adjusted Book Value for  MFC:NYS and generated a book value of  $19.00 (CAD) / $15.09 (USD)
By multiplying these we get an adjusted valuation of  $23.59 (CAD) / $18.73 (USD)

Analyst Data

In the Stockcalc database there are 9 analysts that provide a valuation for MFC:NYS. The 9 analysts have a concensus valuation for MFC:NYS for 2018 of $30.44 (CAD) / $24.17 (USD).

Company Overview (MFC:NYS USD)

Price 19.92
Range 19.47 – 20.14
52 week 16.67 – 21.99
Open 19.96
Vol / Avg. 5.71M/1.59M
Mkt cap 39.4B
P/E 25.59
Div/yield 0.70/0.03
EPS 0.98
Shares 1.98B
Beta 1.93
Summary chart

Detailed Company Description

Manulife Financial Corp together with its subsidiaries provides individual life insurance and individual and group long-term care insurance services. Its business segments are Asia Division, Canadian Division, U.S. Division, and Corporate and Other.

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.
The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).
The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.
Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.
With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.
If we have Analyst coverage for the company we use the consensus target price here.

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Great-West Lifeco (GWO:TSE) Fundamental Valuation Report


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Great-West Lifeco $33.95 (CAD) Close Price as of 09/02/2018

Based on the analysis conducted in this report, Great-West Lifeco, (GWO:TSE) is found to be  Undervalued.

Company Great-West Lifeco
Symbol:Exchange GWO:TSE
Industry Financial Services:Insurance-Life
Close Price/Date $33.95 (CAD) 09/02/2018
Weighted Average Valuation $36.16 (CAD)
Summary GWO:TSE is found to be  Undervalued by 6.5% using the 3 valuation models shown below.
Valuation Models Used Analyst Consensus: $37.88 (CAD)
(in order of importance) Adjusted Book Value: $36.50 (CAD)
Discounted Cash Flow: $30.33 (CAD)
Valuation Methods Analysis This company is:
Cash Flow Basis: Overvalued on a Cash Flow Valuation basis
Comparable Company Basis: Overvalued on a Comparable Valuation basis
Asset Basis: Undervalued on an Asset Valuation basis

Valuation Details

Great-West Lifeco Valuations

Summary chart

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for GWO:TSE

Using a discounted cash flow model we generated an intrinsic value of $30.33 (CAD) for GWO:TSE

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

GWO:TSE Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $30.33 1% 5% 1% 5%
WACC (or Ke) 9.77 $35.94 $26.16
Terminal Growth Rate 3.00 $26.66 $35.26
Tax Rate 0.15 $32.27 $28.38
Cash Flow 2,797,068,588 $28.68 $31.97
Capital Expenditures 0 $30.33 $30.33
Long Term Debt 0 $30.33 $30.33

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $25.15 (CAD) for GWO:TSE. We also generated a valuation of $29.62 (CAD) using other metrics and comparables.
The comparable companies were Manulife Financial (MFC:NYS) and Power Financial (PWF:TSE)

Company GWO:TSE End Date Value
Earnings/Share $2.17 (CAD)
Book Value/Share $19.94 (CAD)
Sales/Share $42.36 (CAD)
Cash Flow/Share $5.92 (CAD)
EBITDA/Share $3.23 (CAD)
Price Based on Comps Adjustment Factor (%)
$39.78 (CAD) -15.3
$26.49 (CAD) 16.5
$29.14 (CAD) -4.3
$19.12 (CAD) -57.3
($5.67) (CAD) 41.3
GWO:TSE Ratios Used Average Values MFC:NYS PWF:TSE
13.78 PE Ratio 18.33 25.47 11.19
1.70 PB Ratio 1.33 1.31 1.34
0.80 PS Ratio 0.69 0.85 0.53
5.72 PCF Ratio 3.23 2.79 3.67
0.00 EV to EBITDA 0.00 0.00 0.00

Multiples

Using a multiples approach we generated a valuation of  $34.22 (CAD) for GWO:TSE

Company GWO:TSE End Date Value
Earnings/Share $2.17 (CAD)
Book Value/Share $19.94 (CAD)
Sales/Share $42.36 (CAD)
Cash Flow/Share $5.92 (CAD)
EBITDA/Share $3.23 (CAD)
Price Based on Comps Adjustment Factor
$28.54 (CAD) 0
$36.12 (CAD) 0
$36.84 (CAD) 0
$35.74 (CAD) 0
$33.86 (CAD) 0
Ratios Ratio Average
PE Ratio 13.15
PB Ratio 1.81
PS Ratio 0.87
PCF Ratio 6.04
EV to EBITDA 10.49

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  GWO:TSE for the last 10 years was  1.81

We ran the Adjusted Book Value for  GWO:TSE and generated a book value of  $20.11 (CAD)
By multiplying these we get an adjusted valuation of  $36.50 (CAD)

Analyst Data

In the Stockcalc database there are 8 analysts that provide a valuation for GWO:TSE. The 8 analysts have a concensus valuation for GWO:TSE for 2018 of $37.88 (CAD).

Company Overview (GWO:TSE CAD)

Price 33.95
Range 33.53 – 34.38
52 week 33.32 – 37.74
Open 34.24
Vol / Avg. 1.36M/411070
Mkt cap 33.6B
P/E 13.78
Div/yield 1.47/0.04
EPS 2.17
Shares 989.57M
Beta 0.99