Fairfax Financial Holdings Limited (FFH.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

+275.9%

CA$9,362.15

vs CA$2,490.61 price

Levered DCF

CA$1,905.88

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.19

Distress zone

Rating

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	8.28×	8.01×	5.38×	13.07×	3.8×	315.26×	6.3×	32.22×
P/B	1.54×	1.29×	1×	0.9×	0.82×	0.85×	0.88×	0.92×
P/S	1.34×	1.09×	0.89×	0.77×	0.52×	0.6×	0.6×	0.73×
EV / EBITDA	5.47×	5.24×	3.84×	2.09×	-0.7×	2.94×	5.07×	8.64×
Gross margin	21.7%	19.6%	20.3%	-0.5%	47.6%	41.2%	48.6%	40.2%
Operating margin	21.2%	19.8%	22.9%	25.0%	17.0%	1.2%	10.5%	5.2%
Net margin	15.7%	13.6%	17.0%	17.2%	13.2%	1.1%	9.5%	2.3%
Current ratio	2.28×	2.51×	1.26×	3.29×	4.38×	3.39×	6.32×	10.24×
Debt / equity	0.56×	0.54×	0.47×	0.56×	0.47×	0.64×	0.61×	0.49×
Interest coverage	7.84×	8.69×	11.58×	10.83×	8.55×	0.51×	4.73×	2.48×
Dividend yield	0.9%	1.3%	1.3%	2.0%	2.3%	2.7%	2.6%	2.7%
Payout ratio	7.7%	10.6%	6.7%	8.7%	9.3%	146.4%	16.2%	87.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	18.0%	16.1%	19.1%	20.2%	20.8%	1.6%	13.9%	2.9%
Return on invested capital	5.3%	3.7%	3.5%	5.0%	5.3%	0.1%	3.0%	1.4%
Return on assets	4.4%	4.0%	4.8%	3.7%	3.9%	0.3%	2.8%	0.6%
Free cash flow yield	5.9%	11.5%	-2.4%	-32.3%	46.5%	-1.1%	8.2%	-17.8%
Earnings yield	11.7%	12.5%	19.0%	22.5%	25.2%	1.8%	15.9%	3.1%
Enterprise value	CA$44B	CA$36.9B	CA$28.1B	CA$12.6B	-CA$4.1B	CA$4.3B	CA$17B	CA$13.5B
Net debt / EBITDA	0.39×	0.83×	0.69×	-0.39×	-3.01×	-5.09×	1.31×	0.88×
Cash conversion cycle (days)	123	-2	-2	351	95	188	164	218