Definitive Analysis
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Definitive Analysis

Financial Statements

Mode

Ticker

Industry

Sector

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

Company Dividend Discount ModelIndustry: Insurance - LifeSector: Financial Services

Valuation Snapshot

Stable Growth$72.65 - $141.07$99.85
Multi-Stage$75.99 - $83.07$79.47
Blended Fair Value$89.66
Current Price$17.75
Upside405.12%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS5.82%5.36%2.222.081.961.801.741.671.651.561.471.39
YoY Growth--6.81%6.08%8.88%3.14%4.30%1.37%5.85%6.14%5.47%5.70%
Dividend Yield--13.77%14.47%16.09%11.05%11.57%18.71%11.14%8.36%9.17%10.42%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,172.00
(-) Cash Dividends Paid (M)2,215.00
(=) Cash Retained (M)1,957.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)834.40521.50312.90
Cash Retained (M)1,957.001,957.001,957.00
(-) Cash Required (M)-834.40-521.50-312.90
(=) Excess Retained (M)1,122.601,435.501,644.10
(/) Shares Outstanding (M)933.08933.08933.08
(=) Excess Retained per Share1.201.541.76
LTM Dividend per Share2.372.372.37
(+) Excess Retained per Share1.201.541.76
(=) Adjusted Dividend3.583.914.14
WACC / Discount Rate8.44%8.44%8.44%
Growth Rate3.36%4.36%5.36%
Fair Value$72.65$99.85$141.07
Upside / Downside309.30%462.55%694.77%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,172.004,353.704,543.324,741.194,947.685,163.165,318.06
Payout Ratio53.09%60.47%67.86%75.24%82.62%90.00%92.50%
Projected Dividends (M)2,215.002,632.843,082.883,567.124,087.694,646.854,919.21

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.44%8.44%8.44%
Growth Rate3.36%4.36%5.36%
Year 1 PV (M)2,404.572,427.832,451.10
Year 2 PV (M)2,571.472,621.472,671.95
Year 3 PV (M)2,717.412,797.052,878.24
Year 4 PV (M)2,844.002,955.673,070.60
Year 5 PV (M)2,952.713,098.353,249.67
PV of Terminal Value (M)57,416.6060,248.5063,191.06
Equity Value (M)70,906.7674,148.8877,512.62
Shares Outstanding (M)933.08933.08933.08
Fair Value$75.99$79.47$83.07
Upside / Downside328.13%347.70%368.01%

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