Where Will Power Corporation Be in 5 Years?

Power Corporation of Canada (TSX:POW), a holding company with stakes in financial services and alternative asset management, has generated more than 240% in total returns over the past five years. However, the conglomerate’s stock still trades at a steep 26.8% discount to net asset value (NAV) today. But with a clear strategy to grow its core subsidiaries, return capital to shareholders, and expand its alternative investment platforms, POW stock could deliver compelling returns over the next five years. The article predicts a 12% to 15% annual return over the next five years through capital gains and dividend yields.