MFC (Manulife Financial) Intrinsic Value: Projected FCF (2024)

What is Manulife Financial Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-09-12), Manulife Financial's Intrinsic Value: Projected FCF is $96.12. The stock price of Manulife Financial is $27.95. Therefore, Manulife Financial's Price-to-Intrinsic-Value-Projected-FCF of today is 0.3.

The historical rank and industry rank for Manulife Financial's Intrinsic Value: Projected FCF or its related term are showing as below:

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Manulife Financial was 0.34. The lowest was 0.17. And the median was 0.26.

Manulife Financial Intrinsic Value: Projected FCF Historical Data

The historical data trend for Manulife Financial's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Manulife Financial Intrinsic Value: Projected FCF Chart

Manulife Financial Annual Data
TrendDec14Dec15Dec16Dec17Dec18Dec19Dec20Dec21Dec22Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial73.86 83.40 90.23 87.70 94.89
Manulife Financial Quarterly Data
Sep19Dec19Mar20Jun20Sep20Dec20Mar21Jun21Sep21Dec21Mar22Jun22Sep22Dec22Mar23Jun23Sep23Dec23Mar24Jun24
Intrinsic Value: Projected FCFGet a 7-Day Free Trial91.55 91.11 94.89 93.29 95.22

Competitive Comparison of Manulife Financial's Intrinsic Value: Projected FCF

For the Insurance - Life subindustry, Manulife Financial's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Manulife Financial's Price-to-Projected-FCF Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Manulife Financial's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Manulife Financial's Price-to-Projected-FCF falls into.


Manulife Financial Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get Manulife Financial's Free Cash Flow(6 year avg) = $15,537.19.

Manulife Financial's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Jun24)*0.8)/Shares Outstanding (Diluted Average)
=(9.5203515959648*15537.18976+36004.378*0.8)/1799.000
=98.23

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Manulife Financial(NYSE:MFC) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Manulife Financial's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=27.95/98.234025418802
=0.28

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Manulife Financial Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Manulife Financial's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.

Manulife Financial Business Description

Industry

GURUFOCUS.COM »STOCK LIST »Financial Services » Insurance » Manulife Financial Corp (NYSE:MFC) » Definitions » Intrinsic Value: Projected FCF

Comparable Companies

TSX:GWO TSX:POW TSX:ELF TSX:SFC SHSE:601628 SHSE:601318 BOM:543526 HKSE:01299 AFL MET PRU TPE:2881 SHSE:601601 TPE:2882 TSE:8750 LSE:PRU BOM:540719 BOM:540777 XKRX:032830 BOM:540133

Traded in Other Exchanges

MNLCF.PFD:USA MFC:Philippines MFC:Mexico 00945:Hong Kong 0V5H:UK MLU:Germany MLU:Germany MFC.PR.Q.PFD:Canada MFC.PR.P.PFD:Canada MFC.PR.N.PFD:Canada MFC.PR.M.PFD:Canada MFC.PR.L.PFD:Canada MFC.PR.K.PFD:Canada MFC.PR.J.PFD:Canada MFC.PR.I.PFD:Canada MFC.PR.F.PFD:Canada MFC.PR.C.PFD:Canada MFC.PR.B.PFD:Canada MFC:Canada

Address

200 Bloor Street East, Toronto, ON, CAN, M4W 1E5

Manulife Financial provides life insurance, annuities, and asset management products to individuals and group customers in Canada, the United States, and Asia. Its investment management business contributes approximately 20% of its earnings and has around CAD 1.35 trillion in assets under management and administration as of June 30, 2023. The U.S. business, which primarily operates under the John Hanco*ck brand, contributes about 30% of earnings and is mainly focused on providing insurance products for estate, business, and income protection. The Asia segment provides insurance products and insurance-based wealth accumulation products in over 11 countries and contributes around 30% of earnings. The Canadian business segment contributes approximately 20% of earnings.

Manulife Financial Headlines

From GuruFocus

Manulife Investment Management Announces $1.2 Billion Industrial Recapitalization with Scannell Properties and StepStone Real Estate

By PRNewswire 12-05-2023

Manulife declares common share dividend

By PRNewswire 08-09-2023

Manulife reports strong topline results in 2Q23 with APE sales up 12%, NBV up 10%, new business CSM of $592 million up 15% and Global Wealth and Asset Management net inflows of $2.2 billion. Net income attributed to shareholders was $1.0 billion in 2Q23 a

By PRNewswire 08-09-2023

John Hanco*ck Announces 2023 MLK Scholars Program, Invests Another $1 Million in Summer Jobs, Financial Education for Boston Youth

By PRNewswire 07-10-2023

Manulife Investment Management Provides Mezzanine Financing for 373,000 SF Mixed-Use Property in Chicago

By PRNewswire 10-10-2023

Manulife named to 2023 Dow Jones Sustainability North America Index

By PRNewswire 12-13-2023

Manulife Investment Management Builds Real Estate Team with New Hires to Transform its Capabilities for Investors

By PRNewswire 08-02-2023

CI Select Canadian Equity Fund Adjusts Portfolio, Highlighting Fairfax Financial Holdings Ltd

By GuruFocus Research 01-24-2024

Manulife declares preferred share dividends

By PRNewswire 08-09-2023

Manulife Financial Corporation Announces Results of Conversion Privilege of Non-cumulative Rate Reset Class 1 Shares Series 13

By PRNewswire 09-06-2023

MFC (Manulife Financial)  Intrinsic Value: Projected FCF (2024)

FAQs

What is the intrinsic value of MFC? ›

The details of how we calculate the intrinsic value of stocks are described in detail here. As of today (2024-09-14), Manulife Financial's Intrinsic Value: Projected FCF is $95.91. The stock price of Manulife Financial is $28.08. Therefore, Manulife Financial's Price-to-Intrinsic-Value-Projected-FCF of today is 0.3.

What is FCF intrinsic value? ›

So the intrinsic value is the net present value (NPV) of the sum of all future free cash flows (FCF) the company will generate during its existence. This intrinsic value reflects how much the business underlying the stock is actually worth if you would sell off the whole business and all of its assets.

Is Manulife stock undervalued? ›

The intrinsic value of one MFC stock under the Base Case scenario is 51.71 CAD. Compared to the current market price of 36.73 CAD, Manulife Financial Corp is Undervalued by 29%.

What is the forecast for Manulife Financial? ›

MFC Stock 12 Month Forecast

Based on 9 Wall Street analysts offering 12 month price targets for Manulife Financial in the last 3 months. The average price target is C$39.26 with a high forecast of C$42.75 and a low forecast of C$34.80. The average price target represents a 6.89% change from the last price of C$36.73.

How do you find the total intrinsic value? ›

How Do You Find the Intrinsic Value of a Stock? Calculate the company's future cash flow then calculate the present value of the estimated future cash flows. Add up all the present values to arrive at the intrinsic value.

Is Manulife a good buy right now? ›

This summary was created by AI, based on 46 opinions in the last 12 months. Overall, experts generally have a positive outlook on Manulife Financial (MFC-T). The company has taken steps to pivot its business away from riskier liabilities and has been seeing growth in its Asian market segment.

What is the stock price forecast for MFC in 2025? ›

The Wall Street analyst predicted that Manulife Financial's share price could reach $40.00 by Jun 28, 2025. The average Manulife Financial stock price prediction forecasts a potential upside of 42.45% from the current MFC share price of $28.08.

Should I sell my Manulife shares? ›

Manulife Financial Corporation MFC is set to gain from the strength of its Asia business, its expanding Wealth and Asset Management business and a solid capital position. These, along with solid growth projections, make the stock worth retaining.

What is a good intrinsic value? ›

Intrinsic value is a core concept that value investors use to uncover hidden investment opportunities. In options trading, intrinsic value is the difference between the current price of an asset and the strike price of the option. When an asset's market price is below its intrinsic value, it may be a smart investment.

Should intrinsic value be high or low? ›

Intrinsic value is an estimate of the actual value of a company, separate from how the market values it. Value investors look for companies with higher intrinsic value than market value. They see this as a good investment opportunity.

How does Warren Buffett calculate intrinsic value? ›

Buffett uses a discounted cash flow model to estimate intrinsic value and identify undervalued stocks. The model discounts projections of future free cash flows and a conservative terminal value. A discount rate based on the Treasury yield plus an equity risk premium is applied.

What is the Intrinsic Value of Bristol Myers Squibb? ›

The intrinsic value of one BMY stock under the Base Case scenario is 74.02 USD. Compared to the current market price of 48.59 USD, Bristol-Myers Squibb Co is Undervalued by 34%.

What is Mill's Intrinsic Value? ›

The essence of Mill's theory of value is the identification of the intrinsically good as the intrinsically desirable, or as that which is desirable for its own sake. The instrumentally good is that which is desirable, not for its own sake, but as a means. for its own sake.

What is the Intrinsic Value of JNJ Gurufocus? ›

As of today (2024-09-14), Johnson & Johnson's Intrinsic Value: Projected FCF is $97.79. The stock price of Johnson & Johnson is $165.52. Therefore, Johnson & Johnson's Price-to-Intrinsic-Value-Projected-FCF of today is 1.7.

What is the Intrinsic Value of the dividend growth model? ›

The dividend discount model was developed under the assumption that the intrinsic value of a stock reflects the present value of all future cash flows generated by a security. At the same time, dividends are essentially the positive cash flows generated by a company and distributed to the shareholders.

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