Power Corporation of Canada (POW.TO)
Financials · TSX · Canada
Fundamentals
Valuation and ratings
Power Corporation of Canada trades at C$91.78, which is 75% below the C$160.16 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 59 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 21.9 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Power Corporation of Canada
Power Corporation of Canada, an international management and holding company, provides financial services in North America, Europe, and Asia. The company operates through Lifeco, IGM Financial, and GBL segments. It offers life, health and dental, disability, critical illness, and creditor insurance, as well as reinsurance products; retirement and wealth management solutions, including annuities and segregated funds; and pension and investment products to individuals and small business owners. The company is also involved in wealth and asset management for supporting financial advisors; listed and private investments, and alternative assets and third-party asset management; and fintech investments. Power Corporation of Canada was incorporated in 1925 and is based in Montreal, Canada.
POW.TO passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Power Corporation of Canada (POW.TO) undervalued?
Against our discounted cash flow estimate of C$160.16, POW.TO at C$91.78 is 75% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is POW.TO's P/E ratio?
POW.TO trades at 21.9 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.