Power Corporation of Canada Shs Subord.Voting
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| !> | LOCK|pw | LOCK|tl$rW? |
Strong Asset Valuations Are a Boost to Power Corporation of Canada's Profit Outlook
Business Strategy and Outlook
Power Corporation of Canada is a holding company and derives most of its underlying value from its ownership stakes in Great-West Lifeco and IGM Financial. We estimate that Power Corporation's stake in two publicly listed companies accounts for approximately 85% of its total value. The company has stated that rather than diversifying across industries, Power Corp. will focus on the financial services sector. The company simplified its ownership structure and reduced corporate costs after it acquired all the shares of Power Financial in a restructuring effort in 2020.
