Latest Ratios: P/E Ratio 18.2x · EV/EBITDA 13.4x · ROE 14.5%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $43.5B | $35.7B | $34.5B | $30.5B | $27.3B | $32.9B | $26.2B | $27.2B | $20.3B | $25.4B | $23.8B |
| Enterprise Value | $49.9B | $44.8B | $41.2B | $34.8B | $33.5B | $30.8B | $24.3B | $29.5B | $19.7B | $21.3B | $24.7B |
| P/E Ratio → | 18.20 | 10.15 | 11.26 | 9.90 | 9.49 | 8.34 | 10.90 | 10.38 | 6.96 | 11.82 | 9.53 |
| P/S Ratio | 1.47 | 0.85 | 1.00 | 0.84 | 7.97 | 0.92 | 0.60 | 0.69 | 0.75 | 0.87 | 0.83 |
| P/B Ratio | 2.51 | 1.40 | 1.32 | 1.26 | 1.19 | 1.17 | 1.01 | 1.11 | 0.83 | 1.11 | 1.06 |
| P/FCF | 4.56 | 2.63 | 14.43 | 3.97 | 3.42 | — | 2.71 | 11.53 | 5.41 | 14.10 | 6.72 |
| P/OCF | 4.51 | 2.60 | 13.62 | 3.91 | 6.34 | — | 2.68 | 11.00 | 5.29 | 12.81 | 6.48 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.06 | 1.20 | 0.96 | 9.77 | 0.86 | 0.56 | 0.74 | 0.73 | 0.72 | 0.86 |
| EV / EBITDA | 13.37 | 8.43 | 8.24 | 7.76 | 8.07 | 5.56 | 6.59 | 8.18 | 5.27 | 7.09 | 6.77 |
| EV / EBIT | 14.84 | 8.43 | 8.24 | 7.76 | 8.23 | 5.68 | 6.68 | 8.28 | 5.16 | 6.87 | 6.57 |
| EV / FCF | — | 3.30 | 17.25 | 4.52 | 4.19 | — | 2.52 | 12.51 | 5.25 | 11.79 | 6.99 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 100.0% | 100.0% | 14.0% | 11.9% | 118.7% | 41.2% | 28.5% | 28.2% | 40.3% | 35.1% | 36.5% |
| Operating Margin | 11.4% | 11.4% | 12.6% | 10.8% | 105.7% | 14.3% | 7.6% | 8.1% | 13.0% | 9.5% | 12.1% |
| Net Profit Margin | 8.9% | 8.9% | 9.2% | 9.2% | 88.2% | 12.2% | 6.4% | 7.4% | 10.8% | 8.5% | 9.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.5% | 14.5% | 12.6% | 14.2% | 11.9% | 16.2% | 11.0% | 12.0% | 12.3% | 11.0% | 12.9% |
| ROA | 1.0% | 1.0% | 0.9% | 1.0% | 0.9% | 1.3% | 0.9% | 1.0% | 1.1% | 0.9% | 1.1% |
| ROIC | 10.7% | 10.7% | 10.6% | 10.3% | 9.9% | 15.3% | 9.7% | 9.5% | 12.3% | 9.9% | 12.8% |
| ROCE | 1.3% | 1.3% | 1.2% | 1.2% | 1.1% | 1.5% | 1.1% | 1.1% | 1.3% | 1.1% | 1.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.74 | 0.74 | 0.65 | 0.64 | 0.68 | 0.36 | 0.34 | 0.37 | 0.27 | 0.21 | 0.34 |
| Debt / EBITDA | 3.53 | 3.53 | 3.37 | 3.44 | 3.74 | 1.84 | 2.38 | 2.50 | 1.79 | 1.58 | 2.09 |
| Net Debt / Equity | — | 0.36 | 0.26 | 0.17 | 0.27 | -0.07 | -0.07 | 0.10 | -0.02 | -0.18 | 0.04 |
| Net Debt / EBITDA | 1.71 | 1.71 | 1.35 | 0.94 | 1.49 | -0.37 | -0.50 | 0.65 | -0.16 | -1.39 | 0.26 |
| Debt / FCF | — | 0.67 | 2.82 | 0.55 | 0.77 | — | -0.19 | 0.99 | -0.16 | -2.31 | 0.26 |
| Interest Coverage | 10.12 | 10.12 | 7.53 | 8.12 | 12.40 | 16.59 | 10.26 | 10.71 | 12.51 | 10.20 | 11.90 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.78 | 2.78 | — | — | — | 5.96 | — | — | 5.36 | 5.20 | 3.91 |
| Quick Ratio | 2.78 | 2.78 | — | — | — | 5.96 | — | — | 11.34 | 10.96 | 8.21 |
| Cash Ratio | 1.97 | 1.97 | — | — | — | 7.51 | — | — | 4.42 | 4.21 | 2.95 |
| Asset Turnover | — | 0.11 | 0.09 | 0.11 | 0.01 | 0.10 | 0.13 | 0.13 | 0.10 | 0.11 | 0.11 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.2% | 5.8% | 5.7% | 4.6% | 6.1% | 4.3% | 4.1% | 4.8% | 6.1% | 4.5% | 4.5% |
| Payout Ratio | 55.1% | 55.1% | 61.9% | 42.5% | 55.3% | 32.7% | 38.4% | 44.8% | 42.1% | 46.4% | 38.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.5% | 9.9% | 8.9% | 10.1% | 10.5% | 12.0% | 9.2% | 9.6% | 14.4% | 8.5% | 10.5% |
| FCF Yield | 21.9% | 38.1% | 6.9% | 25.2% | 29.3% | — | 36.9% | 8.7% | 18.5% | 7.1% | 14.9% |
| Buyback Yield | 2.7% | 4.8% | 2.5% | 0.5% | 0.0% | 3.1% | 0.6% | 2.2% | 3.2% | 0.7% | 4.0% |
| Total Shareholder Yield | 6.0% | 10.5% | 8.2% | 5.1% | 6.1% | 7.5% | 4.7% | 7.0% | 9.2% | 5.2% | 8.5% |
| Shares Outstanding | — | $573M | $581M | $589M | $589M | $590M | $589M | $597M | $611M | $616M | $619M |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying SLF stock.
Sun Life Financial Inc.'s current P/E ratio is 18.2x. The historical average is 13.0x. This places it at the 88th percentile of its historical range.
Sun Life Financial Inc.'s current EV/EBITDA is 13.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.4x.
Sun Life Financial Inc.'s return on equity (ROE) is 14.5%. The historical average is 9.8%.
Based on historical data, Sun Life Financial Inc. is trading at a P/E of 18.2x. This is at the 88th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Sun Life Financial Inc.'s current dividend yield is 3.22% with a payout ratio of 55.1%.
Sun Life Financial Inc. has 100.0% gross margin and 11.4% operating margin. Operating margin between 10-20% is typical for established companies.
Sun Life Financial Inc.'s Debt/EBITDA ratio is 3.5x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Commercial real estate exposure
Premium Multiple Reflects Fee-Heavy Mix
Sun Life trades at 2.47x book and 17.85x trailing earnings, a premium to Manulife's 1.95x and 19.53x, per peer data, suggesting the market rewards its fee-based asset management and stable group benefits franchise.
The P/B of 2.47 is well above the peer median of 1.36, implying investors expect superior ROE sustainability. With ROE at 14.5% (latest snapshot) versus Manulife's 12.6%, the premium appears justified by higher profitability, but the forward P/E of 14.03 suggests the market anticipates earnings growth, possibly from Asia expansion and SLC Management scaling. The PEG of 2.09 indicates that growth expectations are modest relative to the multiple, warranting scrutiny of whether the premium is sustainable if fee income faces headwinds.
Combined Ratio Stability Masks Volatility
Sun Life's combined ratio has held between 82.0% and 90.5% over ten quarters, per reported data, consistently below 100%, indicating underwriting discipline, though the 2024Q4 outlier of 82.0% suggests reserve releases may have flattered results.
The combined ratio's narrow range (excluding 2024Q4) of 88.3% to 90.5% reflects stable loss ratios around 87-89%, but the expense ratio swings wildly from 0.9% to 30.7% (2026Q1), likely due to IFRS 17 revenue recognition timing. The 2024Q4 combined ratio of 82.0% with a loss ratio of 75.2% appears anomalous, possibly driven by favorable prior-year reserve development, which may not recur. Investors should monitor whether the underlying loss ratio trends toward the higher end, especially with rising claims payments observed in cash flow data.
ROE Decomposition Points to Fee Income
Sun Life's ROE averaged 3.3% quarterly over the last ten periods, per reported figures, but the latest annualized ROE of 14.5% suggests a strong return profile, driven by fee-based asset management and underwriting profits.
The quarterly ROE figures (0.5% to 5.6%) are distorted by IFRS 17 market-related items, but the underlying ROE of 14.5% (latest snapshot) indicates a healthy return on equity. The underwriting margin of 9.8% to 11.7% (excluding 2024Q4) contributes meaningfully, but the fee income from MFS and SLC Management likely provides the stability, as investment income data is unavailable. The gap between reported net margin (8.9%) and operating margin (11.4%) suggests market-related volatility, and the reliance on fee income may be underappreciated in the ROE decomposition.
Leverage Appears Understated, Capital Thin
Sun Life's reported debt-to-equity of 0.34 in 2026Q2, per quarterly data, is implausibly low for a global insurer, likely excluding subordinated debt, while equity of $26.6B against $398.6B liabilities implies a thin 6.3% capital cushion.
The D/E ratio has ranged from 0.24 to 0.74 over ten quarters, with the 2025Q4 spike to 0.74 suggesting a temporary increase in leverage, possibly for the DentaQuest acquisition. However, the reported figures likely omit preferred shares and subordinated debt, understating true financial leverage. The premium-to-surplus ratio, a key underwriting leverage metric, is not directly provided, but the thin equity-to-liabilities ratio of 6.3% indicates limited buffer against adverse claims or investment losses, especially given commercial real estate exposure.
Premium vs. Peers Justified by ROE
Sun Life's P/B of 2.47 exceeds Manulife's 1.95 and MetLife's 2.19, per peer data, while its ROE of 14.5% outpaces both, suggesting the premium reflects superior profitability and a more fee-diversified business model.
Compared to peers, Sun Life's P/E of 17.85 is lower than Manulife's 19.53 and MetLife's 19.81, yet its P/B is higher, indicating the market values its book value more richly due to higher ROE sustainability. The dividend yield of 3.3% is in line with Manulife's 3.2% but below Prudential's 4.5%, reflecting a balanced capital return policy. The premium to Lincoln National (P/B 0.74) is stark, but Lincoln's ROE of 22% is distorted by tax benefits, making Sun Life's premium more defensible on a quality-adjusted basis.
Combined Ratio Misleads Without Reserve Adjustments
The combined ratio, while below 100%, may overstate underwriting quality if prior-year reserve releases are excluded, as evidenced by the 2024Q4 outlier of 82.0% versus 89.3% in 2024Q3, per reported data.
For insurers, the combined ratio is often misapplied without adjusting for reserve development. Sun Life's 2024Q4 combined ratio of 82.0% appears to benefit from favorable prior-year reserve releases, which may not recur, masking the true underlying loss ratio of around 87-89%. Analysts should use the current accident-year combined ratio, excluding reserve releases, to assess underwriting profitability. Additionally, the expense ratio volatility under IFRS 17 makes period-over-period comparisons unreliable, so a normalized expense ratio over a full cycle is more appropriate.