Every January since 1993, Strategic Analysis has published a list of 20 stocks in the Canadian and U.S. markets that meet our three foundational investment criteria:

1. Strong balance sheets
2. Solid upside potential
3. Attractive valuations

This disciplined approach, grounded in Structural Valuation Analysis (SVA), has consistently identified outperformers. On average, the 2025 list has delivered a 29.4% gain, following 31% in 2024.

Among this year’s standouts is Power Corporation of Canada (POW.TO) — a long-time fixture of the Canadian financial landscape that, even after a 48% year-to-date gain, continues to show meaningful upside.

A Renewed Power Corp

Power Corp’s portfolio includes several major holdings: Great-West Lifeco, IGM Financial, and Wealthsimple. For decades, these businesses have provided diversification and earnings stability across the financial sector.

Following the passing of founder Paul Desmarais Sr., Power Corp’s leadership transitioned to the next generation. Over time, the company’s strategic focus has evolved under professional management, positioning it for renewed growth and stronger capital allocation.

Recent performance suggests this transition is delivering results. The company’s stock has advanced sharply in 2025, reflecting improved market confidence and operational execution.

The SVA Perspective

Using Structural Valuation Analysis (SVA), Power Corp’s valuation remains compelling on multiple fronts:

• Balance Sheet Quality: Power Corp maintains a diversified structure with no balance sheet weaknesses, supported by stable subsidiaries and consistent cash generation.
• Upside Potential: SVA calculations indicate that the company’s intrinsic value is approximately 98% above its current market price — a notable discount for a firm of this scale and quality.
• Momentum Beyond Blue Price: In SVA terms, a stock breaking above its Blue Price (BL) often trends toward its Normal Price (NP) — typically aligned with book value. For Power Corp, that represents an additional 39% potential upside.

Why It Still Looks Inexpensive

Despite its strong performance, Power Corp remains undervalued relative to its intrinsic worth. The company’s combination of financial strength, stable assets, and improving management efficiency fits squarely within the type of opportunity SVA aims to uncover — stocks that are both fundamentally sound and strategically mispriced.

This makes Power Corp one of the few large-cap Canadian financials still offering quality, momentum, and value simultaneously.

Conclusion

Power Corp (POW.TO) continues to meet the criteria that have defined Strategic Analysis’ methodology for over three decades. With nearly double the upside to fair value, a strong financial foundation, and recent operational progress, the company remains a notable inclusion among our 2025 selections.

🎥 Watch the full analysis: https://youtu.be/QFv0rjRyne8
📈 Ticker: POW.TO
💰 Upside to Intrinsic Value: +98.2%
📘 Methodology: Structural Valuation Analysis (SVA)