Great-West Lifeco Inc. (GWO) fair value: what the stock is really worth
As of Nov 4, 2026: fair value (intrinsic value) of Great-West Lifeco Inc. stock C$41.76, price C$94.40, that is 55.8% below the price, quality 50 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 5, 2026.
How to read this chart
60‑month range C$23.74 – C$94.73 · fair‑value band C$29.74 – C$61.19 · the C$94.40 price screens above the C$41.76 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 5, 2026.
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Great-West Lifeco Inc. engages in the life and health insurance, retirement savings, wealth and asset management, and reinsurance businesses in Canada, the United States, and Europe.
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The company offers life, accidental death and dismemberment, critical illness, disability, health and dental protection, and creditor insurance products; and retirement savings, income and annuity products, and other specialty products to individuals, families, businesses, and organizations.
It also provides individual product solutions and employer-sponsored retirement savings plans that offers saving, investment, and advisory services; retail wealth management products and services to individuals, including individual retirement accounts and after-tax investment accounts; and wealth management, including payout annuity, equity release mortgages, pensions, and investments products.
In addition, the company offers bulk and individual payout annuities, equity release mortgages, life bonds, retirement drawdown and pension, and group insurance products; savings and investments; and provides asset management services, such as pension schemes, insurance companies, wealth managers, fiduciary managers, and sovereign wealth funds, as well as manages assets for third-party institutional clients.
Further, it provides life, annuity/longevity, mortgage surety, and property catastrophe reinsurance products. The company offers its products under the Empower, Canada Life, and Irish Life brand names.
It distributes its products through a network of sales force, brokers, consultants, advisors, third-party administrators, financial institutions, employee benefit consultants, and multi-tied agents. The company was founded in 1979 and is based in Winnipeg, Canada.
Great-West Lifeco Inc. is a subsidiary of Power Financial Corporation.
Stock analysis
Great-West Lifeco Inc. (GWO) currently trades at C$94.40, while our model-based Fair Value estimate is C$41.76, 56% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Dividend Discount group reads highest at a median of C$47.25 per share, and 0 of the 6 models we run sit above the C$94.40 price.
Bear case: the Asset-Based group reads lowest at C$9.32, and 6 of the 6 models stay below the price. Data coverage for this calculation is high.
Scenario range: C$29.74 (bear) to C$61.19 (bull), the price of C$94.40 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 50/100 (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.
Great-West Lifeco Inc. reported revenue of C$39.1B in FY2025 versus C$64.4B in FY2021, a compound −11.7%/yr. Reported net income was C$4.1B in FY2025, compounding +6.0%/yr from FY2021.
Key figures
Market cap C$85.3B (≈ $60.8B) Large · P/E ratio 19.5 · P/S ratio 2.34 · EPS (TTM) C$4.85 · Dividend yield 2.6% · Net margin 12.7% · Return on equity 14.1% · Return on assets (EBIT) 0.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 57 out of 100 (medium confidence).
What moves the price
The share trades at its 52-week high and 65% 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 −56%, GWO screens richer than that median.
Fair Value models
BearC$29.74Fair Value C$41.76BullC$61.19
Price C$94.40 · Downside -55.8%
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$2.05 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
+12.6%
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.
−8.4%
Start year 2020 (pandemic). Over 10 years: +1.5% a year
Revenue growth 29 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.
+6.6%
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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.
+8.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+6.0%
Dividend (yield on the price)2.6%
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.6.0% vs 4.8%, steady
Profit margin 2020 to 2025 ⓘ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.5% → 12%
Pace: the 5-year rate starts in 2020 (pandemic)
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).
+10.5%
Yearly growth needed for the next five years to justify today's price.
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 +8.2% a year for the price.
AI conclusion: Scale in the US retirement platform through Empower strengthens distribution reach, yet limited pricing power and regulatory constraints remain the core weakness in a competitive life insurance sector.
Main risk: Chatbots might handle asset allocation and retirement planning discussions, potentially reducing demand for traditional insurer advisory channels and pressuring margins in distribution across US and Canadian operations.
Bull case: The company could embed AI across underwriting, advice and recordkeeping to cut costs, improve personalization and expand its fee-based Empower platform faster than rivals.
Bear case: Widespread adoption of capable chatbots for planning and advice might erode the value of traditional distribution and advice, leading to slower net inflows and thinner margins in both the US retirement and Canadian life segments.
Great-West Lifeco has closed the acquisition of Milliman's retirement administration business through its Empower subsidiary, adding scale to the US platform that already delivered record margins and strong net inflows. This move accelerates the shift toward fee-based, capital-efficient assets under management. Yet the core Canadian life insurance operations remain exposed to traditional mortality and spread dynamics. Will the US retirement expansion generate more durable earnings growth than the established domestic book?
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 2/15 measures
Overall it trails its industry peers.
Valuation
Quality Score50 · Below median
Fair Value upside−55.8% · Bottom 25%
Profitability
Return on equity (12 months)14.1% · Above median
Return on assets0.5% · Bottom 25%
Net margin (12 months)12.7% · Above median
Operating margin (12 months)16.4% · Below median
Growth and dividend
Revenue growth (quarter YoY)5.4% · Below median
Dividend yield (12 months)2.6% · Below median
Balance sheet
Debt / equity0.42× · Above median
Valuation Multiplesvs Insurance - Life median · lower = cheaper
P/E (12 months)19.5× · Pricier than median
P/B2.86× · Priciest 25%
P/S (12 months)2.34× · Priciest 25%
Price / free cash flow31.5× · Priciest 25%
EV/EBITDA9.2× · Pricier than median
PEG1.84× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 6
FUTURE (revenue growth)27· sector 44
PAST (return on equity)57· sector 52
HEALTH (low debt)79· sector 87
DIVIDEND (yield)52· 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). "Great-West Lifeco Inc. Fair Value". https://www.fairvalue-calculator.com/stock/GWO
Frequently asked questions
Is Great-West Lifeco Inc. (GWO) overvalued or undervalued?
As of Nov 5, 2026, our model estimates a fair value of C$41.76 versus a price of C$94.40, about 56% lower (overvalued).
What is the fair value of GWO?
Our model-based fair value for Great-West Lifeco Inc. is C$41.76 (as of Nov 5, 2026), built from audited fundamentals. The current price: C$94.40.
What is the quality score of GWO?
Great-West Lifeco Inc. has a Quality Score of 50/100. 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 Great-West Lifeco Inc. (GWO)?
Our model-based price target is the fair value of C$41.76 (as of Nov 5, 2026) from 6 valuation models. Cautious scenario C$29.74, optimistic scenario C$61.19. It is a calculation from audited fundamentals, not an analyst target.
What is the Great-West Lifeco Inc. stock forecast for 2026?
Our models put fair value at C$41.76, about 56% lower versus a price of C$94.40 (overvalued). Cautious scenario C$29.74, optimistic scenario C$61.19. The calculation is refreshed regularly with new filings.
What is the revenue of Great-West Lifeco Inc. (GWO)?
Great-West Lifeco Inc. reported trailing-twelve-month revenue of about C$36.4B (latest available figure, as of Nov 5, 2026).
Does Great-West Lifeco Inc. pay a dividend?
Great-West Lifeco Inc. currently shows a dividend yield of 2.58% relative to its recent price (as of Nov 5, 2026).
What growth is priced into Great-West Lifeco Inc. (GWO)?
For today's price to be fair in a discounted-cash-flow model, Great-West Lifeco Inc. would have to grow free cash flow by +10.5 % per year for five years (discount rate 8.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew -8.4 % per year. As of Nov 5, 2026.
What discount rate (WACC) does the fair value of GWO use?
Our models discount Great-West Lifeco Inc. at 8.4 %: a base by market capitalisation (large), damped by beta 0.72, 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 Great-West Lifeco Inc. that is +10.5 % per year a year over ten years, using the same discount rate (8.4 %) and the same formula as our fair value.
How much growth has Great-West Lifeco Inc. (GWO) delivered so far?
Over the past 5 years revenue at Great-West Lifeco Inc. grew -8.4 % a year. The price currently implies +10.5 % 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 Great-West Lifeco Inc. (GWO) growing?
The median revenue growth in the sector is +9.4 % a year. That is the yardstick for the growth priced into Great-West Lifeco Inc. (+10.5 % 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 Great-West Lifeco Inc. (GWO)?
The free-cash-flow yield on the price is 3.18 %: that much free cash flow Great-West Lifeco Inc. produces per unit of market value. When it exceeds the discount rate of our models (8.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Great-West Lifeco Inc. (GWO)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Great-West Lifeco Inc. it is C$41.76 per share (as of Nov 5, 2026), against a price of C$94.40. It is the blended result of 6 valuation models (cash flow, earnings, asset, dividend).
Is Great-West Lifeco Inc. stock overvalued or undervalued in 2026?
As of Nov 5, 2026, GWO trades above its calculated fair value: price C$94.40, fair value C$41.76, a gap of about −56% (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 GWO?
No. The price is what the market pays today (C$94.40); the fair value is what the company's own numbers justify (C$41.76). For Great-West Lifeco Inc. the two are C$52.64 per share apart. That gap is exactly why we show both numbers side by side.
How much is Great-West Lifeco Inc. worth?
The market values Great-West Lifeco Inc. at about C$85.3B (market capitalisation, as of Nov 5, 2026). Per share that is C$94.40; our models calculate a fair value of C$41.76 per share.
What do the bullish and bearish scenarios say about GWO?
Our models span a range for Great-West Lifeco Inc.: cautious scenario C$29.74, base C$41.76, optimistic C$61.19 per share (as of Nov 5, 2026, price C$94.40). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of GWO?
Great-West Lifeco Inc. trades at a price-to-earnings ratio of 19.5 (as of Nov 5, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of C$41.76 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 11.8. Other multiples: PEG 1.8, P/B 2.9, P/S 2.3, EV/EBITDA 9.2.
What is the PEG ratio of GWO?
The PEG ratio of Great-West Lifeco Inc. is 1.84 (P/E divided by earnings growth, as of Nov 5, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Great-West Lifeco Inc. (GWO)?
Balance-sheet figures for Great-West Lifeco Inc. (as of Nov 5, 2026): return on equity 14.1%, debt of 0.42 per unit of equity. They feed the Quality Score of 50/100, which measures business quality independently of the share price.
How far is GWO from its 52-week high?
Great-West Lifeco Inc. trades at C$94.40, at its 52-week high of C$94.73 and 65% above the low of C$57.22 (as of Nov 4, 2026). Distance from the high says nothing about value: that is what the fair value of C$41.76 is for.
Which stocks are comparable to Great-West Lifeco Inc.?
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 Great-West Lifeco Inc. stock attractive at the current price?
The data as of Nov 5, 2026: price C$94.40, calculated fair value C$41.76 (−56%), Quality Score 50/100, 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 GWO calculated?
We run Great-West Lifeco Inc. 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$41.76, 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 15.6% above its aggregate fair value. Great-West Lifeco Inc. 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 Great-West Lifeco Inc. (GWO)?
The closing price on Nov 4, 2026 was C$94.40. Our model-based fair value is C$41.76, about 56% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Great-West Lifeco Inc. right now?
The price sits above even our optimistic bull case (C$61.19). The favourable scenario is already priced in. Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (C$29.74 to C$61.19) 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.
Key figures of Great-West Lifeco Inc.
How large is the market capitalisation of Great-West Lifeco Inc. (GWO)?
The market capitalisation of Great-West Lifeco Inc. is C$85.3B (≈ $60.8B). 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 Great-West Lifeco Inc. (GWO)?
The price-to-sales ratio of Great-West Lifeco Inc. is 2.34 (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 Great-West Lifeco Inc. (GWO)?
Earnings per share at Great-West Lifeco Inc. are C$4.85 (price ÷ EPS = P/E 19.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Great-West Lifeco Inc. (GWO)?
The dividend yield of Great-West Lifeco Inc. is 2.6% (payout 50.3%). 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 Great-West Lifeco Inc. (GWO)?
The net margin of Great-West Lifeco Inc. is 12.7% (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 Great-West Lifeco Inc. (GWO)?
The return on equity (ROE) of Great-West Lifeco Inc. is 14.1% (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 Great-West Lifeco Inc. (GWO)?
On an EBIT basis the return on assets of Great-West Lifeco Inc. is 0.2% (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 Great-West Lifeco Inc. (GWO)?
The operating margin of Great-West Lifeco Inc. is 16.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Great-West Lifeco Inc. (GWO)?
Revenue at Great-West Lifeco Inc. is growing +5.4% 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 Great-West Lifeco Inc. (GWO)?
Earnings per share at Great-West Lifeco Inc. are growing +19.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Great-West Lifeco Inc. (GWO) carry?
The net debt of Great-West Lifeco Inc. is C$5.2B (fiscal year 2025, ≈ 1.9 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 5, 2026