Power Corporation Of Canada (POW) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Power Corporation Of Canada stock C$33.01, price C$91.75, that is 64.0% below the price, quality 55 out of 100. Rating: strongly overvalued. Calculated from audited financials with 6 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 1, 2026.
How to read this chart
60‑month range C$25.02 – C$98.05 · fair‑value band C$23.36 – C$53.61 · the C$91.75 price screens above the C$33.01 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 1, 2026.
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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.
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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.
Stock analysis
Power Corporation Of Canada (POW) currently trades at C$91.75, while our model-based Fair Value estimate is C$33.01, 64% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Economic Profit group reads highest at a median of C$43.94 per share, and 0 of the 6 models we run sit above the C$91.75 price.
Bear case: the Dividend Discount group reads lowest at C$27.50, and 6 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: C$23.36 (bear) to C$53.61 (bull), the price of C$91.75 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 55/100 (solid quality), in the Financial Services sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Power Corporation Of Canada reported revenue of C$37.6B in FY2025 versus C$69.6B in FY2021, a compound −14.2%/yr. Reported net income was C$2.6B in FY2025, compounding −3.0%/yr from FY2021.
Key figures
Market cap C$58.2B (≈ $41.5B) Large · P/E ratio 23.1 · P/S ratio 1.48 · EPS (TTM) C$4.06 · Dividend yield 2.7% · Net margin 6.7% · Return on equity 10.2% · Return on assets (EBIT) 0.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 43 out of 100 (low confidence).
What moves the price
The share trades about 6% below its 52-week high and 48% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at −36% fair-value upside, at −64%, POW screens richer than that median.
Fair Value models
BearC$23.36Fair Value C$33.01BullC$53.61
Price C$91.75 · Downside -64.0%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (C$1.37 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
+14.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−10.2%
Start year 2020 (pandemic). Over 10 years: −0.2% a year
Revenue growth 32 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.8%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+7.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+5.2%
Dividend (yield on the price)2.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5.2% vs 3.5%, steady
Profit margin 2019 to 2024 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.7% → 17%
Pace: the 5-year rate starts in 2020 (pandemic)
⚠ Revenue per share shrinking 3.4%/yr over ~10Y (margins intact) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−2.2%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Canada: IMF forecast 2.1% a year to 2030, 2.6% from 2016 to 2025) that is about −4.3% a year for the price.
News mood ⓘNews mood, the average tone of recent news (91 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: The business benefits from a streamlined holding structure with most value in publicly traded holdings and steady core operations, yet it shows limited signals of a durable competitive moat amid industry competition.
Main risk: Fragmented provincial grids and slow permitting in Canada could delay or reduce returns from Power Sustainable's planned infrastructure and clean energy investments.
Bull case: By partnering on grid upgrades and securing streamlined approvals the infrastructure push could generate stable long-term returns that complement core insurance cash flows.
Bear case: Persistent transmission bottlenecks and policy uncertainty might limit deployment of the clean energy strategy leaving the group more reliant on mature insurance operations amid ongoing industry competition.
Power Corporation has completed its shift to a streamlined financial services holding company. Most of its net asset value sits in publicly traded holdings, yet the subsidiary is now scaling a major push into Canadian infrastructure and clean energy projects. That mix of steady core operations and newer growth bets raises a clear question: will the infrastructure expansion deliver stronger overall returns or stretch management attention across too many fronts?
Compare Power Corporation Of Canada with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Insurance - Life · 77 stocks
Beats the industry median on 4/15 measures
Overall it trails its industry peers.
Valuation
Quality Score55 · Above median
Fair Value upside−64.0% · Bottom 25%
Profitability
Return on equity (12 months)10.2% · Below median
Return on assets0.5% · Bottom 25%
Net margin (12 months)11.2% · Above median
Operating margin (12 months)12.4% · Below median
Growth and dividend
Revenue growth (quarter YoY)8.9% · Above median
Dividend yield (12 months)2.7% · Below median
Balance sheet
Debt / equity0.83× · Highest 25%
Valuation Multiplesvs Insurance - Life median · lower = cheaper
P/E (12 months)23.1× · Priciest 25%
P/B2.38× · Priciest 25%
P/S (12 months)2.42× · Priciest 25%
Price / free cash flow23.5× · Priciest 25%
EV/EBITDA15.3× · Priciest 25%
PEG0.93× · Cheaper than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 6
FUTURE (revenue growth)45· sector 44
PAST (return on equity)41· sector 52
HEALTH (low debt)59· sector 87
DIVIDEND (yield)53· sector 55
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Power Corporation Of Canada Fair Value". https://www.fairvalue-calculator.com/stock/POW
Frequently asked questions
Is Power Corporation Of Canada (POW) overvalued or undervalued?
As of Nov 1, 2026, our model estimates a fair value of C$33.01 versus a price of C$91.75, about 64% lower (overvalued).
What is the fair value of POW?
Our model-based fair value for Power Corporation Of Canada is C$33.01 (as of Nov 1, 2026), built from audited fundamentals. The current price: C$91.75.
What is the quality score of POW?
Power Corporation Of Canada has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Power Corporation Of Canada (POW)?
Our model-based price target is the fair value of C$33.01 (as of Nov 1, 2026) from 6 valuation models. Cautious scenario C$23.36, optimistic scenario C$53.61. It is a calculation from audited fundamentals, not an analyst target.
What is the Power Corporation Of Canada stock forecast for 2026?
Our models put fair value at C$33.01, about 64% lower versus a price of C$91.75 (overvalued). Cautious scenario C$23.36, optimistic scenario C$53.61. The calculation is refreshed regularly with new filings.
What is the revenue of Power Corporation Of Canada (POW)?
Power Corporation Of Canada reported trailing-twelve-month revenue of about C$40.3B (latest available figure, as of Nov 1, 2026).
Does Power Corporation Of Canada pay a dividend?
Power Corporation Of Canada currently shows a dividend yield of 2.67% relative to its recent price (as of Nov 1, 2026).
What growth is priced into Power Corporation Of Canada (POW)?
For today's price to be fair in a discounted-cash-flow model, Power Corporation Of Canada would have to grow free cash flow by -2.2 % per year for five years (discount rate 8.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -10.2 % per year. As of Nov 1, 2026.
What discount rate (WACC) does the fair value of POW use?
Our models discount Power Corporation Of Canada at 8.8 %: a base by market capitalisation (large), damped by beta 0.90, country premium for Canada. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Power Corporation Of Canada that is -2.2 % per year a year over ten years, using the same discount rate (8.8 %) and the same formula as our fair value.
How much growth has Power Corporation Of Canada (POW) delivered so far?
Over the past 5 years revenue at Power Corporation Of Canada grew -10.2 % a year. The price currently implies -2.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Power Corporation Of Canada (POW) growing?
The median revenue growth in the sector is +9.4 % a year. That is the yardstick for the growth priced into Power Corporation Of Canada (-2.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Power Corporation Of Canada (POW)?
The free-cash-flow yield on the price is 7.14 %: that much free cash flow Power Corporation Of Canada produces per unit of market value. When it exceeds the discount rate of our models (8.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Power Corporation Of Canada (POW)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Power Corporation Of Canada it is C$33.01 per share (as of Nov 1, 2026), against a price of C$91.75. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Power Corporation Of Canada stock overvalued or undervalued in 2026?
As of Nov 1, 2026, POW trades above its calculated fair value: price C$91.75, fair value C$33.01, a gap of about −64% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of POW?
No. The price is what the market pays today (C$91.75); the fair value is what the company's own numbers justify (C$33.01). For Power Corporation Of Canada the two are C$58.74 per share apart. That gap is exactly why we show both numbers side by side.
How much is Power Corporation Of Canada worth?
The market values Power Corporation Of Canada at about C$58.2B (market capitalisation, as of Nov 1, 2026). Per share that is C$91.75; our models calculate a fair value of C$33.01 per share.
What do the bullish and bearish scenarios say about POW?
Our models span a range for Power Corporation Of Canada: cautious scenario C$23.36, base C$33.01, optimistic C$53.61 per share (as of Nov 1, 2026, price C$91.75). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of POW?
Power Corporation Of Canada trades at a price-to-earnings ratio of 23.1 (as of Nov 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of C$33.01 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 10.8. Other multiples: PEG 0.9, P/B 2.4, P/S 2.4, EV/EBITDA 15.3.
What is the PEG ratio of POW?
The PEG ratio of Power Corporation Of Canada is 0.93 (P/E divided by earnings growth, as of Nov 1, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Power Corporation Of Canada (POW)?
Balance-sheet figures for Power Corporation Of Canada (as of Nov 1, 2026): return on equity 10.2%, debt of 0.83 per unit of equity. They feed the Quality Score of 55/100, which measures business quality independently of the share price.
How far is POW from its 52-week high?
Power Corporation Of Canada trades at C$91.75, about 6% below its 52-week high of C$98.05 and 48% above the low of C$61.87 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of C$33.01 is for.
Which stocks are comparable to Power Corporation Of Canada?
From the same area (Financial Services) we also value Ping An Insurance (Group) Company, China Life Insurance Company, AIA Group, Manulife Financial Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Power Corporation Of Canada stock attractive at the current price?
The data as of Nov 1, 2026: price C$91.75, calculated fair value C$33.01 (−64%), Quality Score 55/100, from 6 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of POW calculated?
We run Power Corporation Of Canada through 6 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of C$33.01, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Power Corporation Of Canada itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Power Corporation Of Canada (POW)?
The closing price on Nov 5, 2026 was C$91.75. Our model-based fair value is C$33.01, about 64% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Power Corporation Of Canada right now?
The price sits above even our optimistic bull case (C$53.61). The favourable scenario is already priced in. Solid but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (C$23.36 to C$53.61) leaves room in how you read the outcome. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Power Corporation Of Canada (POW) come from?
Earnings per share at Power Corporation Of Canada grew +2.6 % a year from 2014 to 2025. Broken into its drivers: revenue per share −5.0 %, EBIT margin +10.4 %, tax rate +1.8 %, residual (interest, one-offs) −3.8 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Power Corporation Of Canada
How large is the market capitalisation of Power Corporation Of Canada (POW)?
The market capitalisation of Power Corporation Of Canada is C$58.2B (≈ $41.5B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Power Corporation Of Canada (POW)?
The price-to-sales ratio of Power Corporation Of Canada is 1.48 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Power Corporation Of Canada (POW)?
Earnings per share at Power Corporation Of Canada are C$4.06 (price ÷ EPS = P/E 23.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Power Corporation Of Canada (POW)?
The dividend yield of Power Corporation Of Canada is 2.7% (payout 60.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Power Corporation Of Canada (POW)?
The net margin of Power Corporation Of Canada is 6.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Power Corporation Of Canada (POW)?
The return on equity (ROE) of Power Corporation Of Canada is 10.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Power Corporation Of Canada (POW)?
On an EBIT basis the return on assets of Power Corporation Of Canada is 0.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Power Corporation Of Canada (POW)?
The operating margin of Power Corporation Of Canada is 12.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Power Corporation Of Canada (POW)?
Revenue at Power Corporation Of Canada is growing +8.9% versus a year earlier. How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Power Corporation Of Canada (POW)?
Earnings per share at Power Corporation Of Canada are growing −9.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Power Corporation Of Canada (POW) carry?
The net debt of Power Corporation Of Canada is C$12.4B (fiscal year 2025, ≈ 3.0 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 1, 2026