Definity Financial Corporation (DFY.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

+125.8%

CA$166.91

vs CA$73.92 price

Levered DCF

CA$187.70

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.42

Distress zone

Rating

A-

Overall 4 / 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	21.27×	15.59×	12.35×	17.57×	14.55×	20.28×	181.13×	-43.13×
P/B	2.2×	2.02×	1.52×	1.87×	1.3×	1.72×	1.94×	0×
P/S	1.83×	1.49×	1.07×	1.48×	1.06×	1.16×	1.25×	1.3×
EV / EBITDA	13.18×	9.16×	7.38×	22.94×	8.16×	10.47×	46.01×	0×
Gross margin	19.2%	19.3%	17.1%	5.9%	26.4%	28.0%	100.0%	100.0%
Operating margin	11.9%	12.8%	11.6%	3.8%	9.6%	7.4%	0.8%	-4.1%
Net margin	8.6%	9.5%	8.7%	3.7%	7.3%	5.7%	0.7%	-3.0%
Current ratio	0.27×	3.41×	1.68×	17.63×	20.16×	22.64×	0.44×	0×
Debt / equity	0.29×	0.05×	0.05×	0.03×	0.01×	0.01×	0.02×	0×
Interest coverage	25.23×	60.28×	88.15×	189.67×	0×	0×	0×	0×
Dividend yield	1.0%	1.1%	1.5%	1.4%	61.4%	0.0%	0.0%	0.0%
Payout ratio	21.2%	17.1%	18.1%	57.1%	895.4%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.3%	13.0%	12.3%	4.7%	8.9%	8.5%	1.1%	0.0%
Return on invested capital	7.7%	5.9%	5.5%	1.1%	2.1%	1.8%	0.6%	0.0%
Return on assets	4.4%	5.6%	4.8%	1.3%	2.7%	2.3%	0.3%	0.0%
Free cash flow yield	4.6%	3.5%	6.1%	3.8%	19.5%	14.3%	4.4%	1.4%
Earnings yield	4.7%	6.4%	8.1%	2.5%	6.9%	4.9%	0.6%	-2.3%
Enterprise value	CA$9.7B	CA$6.5B	CA$4.3B	CA$4.3B	CA$2.7B	CA$2.6B	CA$3.1B	CA$0
Net debt / EBITDA	1.1×	-0.24×	-0.08×	-0.69×	-1.1×	-1.94×	-1.02×	0×
Cash conversion cycle (days)	33	31	-6	-31	0	-11	0	0