Bank of Montreal (BMO.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+257.6%

CA$865.41

vs CA$242.03 price

Levered DCF

CA$1,620.03

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

0.15

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	15.2×	13.31×	18.16×	6.26×	11.69×	10.49×	11.23×	12.02×
P/B	1.43×	1.1×	0.97×	1.17×	1.53×	0.9×	1.22×	1.38×
P/S	1.61×	1.18×	2.56×	3.17×	3.26×	2.29×	2.46×	2.77×
EV / EBITDA	34.72×	25.6×	31.24×	11.14×	15.2×	21.97×	22.99×	5.33×
Gross margin	41.6%	36.0%	102.1%	97.8%	100.0%	112.6%	100.0%	100.0%
Operating margin	14.8%	11.5%	35.5%	73.8%	52.3%	44.5%	48.6%	46.8%
Net margin	11.1%	9.3%	15.2%	51.6%	28.8%	22.9%	22.7%	23.8%
Current ratio	0.14×	0.14×	0.18×	1.12×	1.29×	1.07×	1.36×	1.35×
Debt / equity	4.72×	3.12×	3.23×	3.13×	3.3×	3.3×	3.64×	0.7×
Interest coverage	0.27×	0.19×	0.28×	1.76×	2.52×	1.06×	0.93×	1.17×
Dividend yield	4.0%	4.2%	3.6%	3.1%	3.4%	4.9%	4.4%	4.1%
Payout ratio	57.8%	52.5%	61.1%	19.2%	38.4%	48.6%	47.8%	47.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.9%	8.7%	5.7%	19.1%	13.5%	9.0%	11.3%	11.9%
Return on invested capital	1.4%	1.6%	1.0%	3.7%	3.0%	2.5%	4.2%	3.5%
Return on assets	0.6%	0.5%	0.3%	1.2%	0.8%	0.5%	0.7%	0.7%
Free cash flow yield	6.8%	29.7%	26.4%	4.2%	49.1%	97.9%	45.2%	26.9%
Earnings yield	6.9%	7.9%	6.0%	16.2%	8.8%	10.0%	9.2%	8.6%
Enterprise value	CA$470.7B	CA$286B	CA$241B	CA$212.8B	CA$176B	CA$171.5B	CA$191.4B	CA$44.7B
Net debt / EBITDA	25.44×	17.33×	21.61×	6.78×	7.62×	15.45×	15.5×	-2.22×
Cash conversion cycle (days)	-250	-182	149	-10,466	91	98	86	162