IGM Financial Inc. (IGM.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

-30.3%

CA$58.15

vs CA$83.49 price

Levered DCF

CA$34.81

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.7

Distress zone

Rating

B+

Overall 3 / 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	13.26×	11.68×	7.27×	10.38×	11.13×	10.75×	11.95×	9.64×
P/B	1.63×	1.4×	1.26×	1.49×	1.69×	1.65×	1.98×	1.62×
P/S	3.83×	3.12×	2.26×	2.86×	3.04×	2.61×	2.95×	2.41×
EV / EBITDA	11.18×	12.28×	11.1×	11.35×	11.45×	13.73×	14.14×	13.79×
Gross margin	63.6%	48.7%	38.7%	48.7%	48.6%	48.4%	67.8%	64.5%
Operating margin	37.9%	32.3%	38.1%	32.1%	33.0%	31.7%	37.9%	45.4%
Net margin	28.8%	26.7%	31.0%	27.5%	27.3%	24.3%	24.8%	25.0%
Current ratio	4.55×	3.61×	3.46×	4.03×	3.28×	2.62×	2.57×	2.58×
Debt / equity	0.83×	0.97×	1.09×	1.14×	1.14×	1.69×	2.02×	2×
Interest coverage	4.6×	8.7×	5.3×	8.92×	10.4×	9.04×	10.55×	11.64×
Dividend yield	3.6%	4.9%	6.4%	6.0%	4.9%	6.5%	6.1%	7.4%
Payout ratio	48.4%	57.2%	46.6%	61.9%	54.9%	70.1%	72.6%	70.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	12.3%	12.0%	17.2%	14.3%	15.2%	15.3%	16.6%	16.9%
Return on invested capital	5.1%	4.4%	6.4%	4.3%	5.4%	5.1%	7.5%	8.5%
Return on assets	4.9%	4.5%	6.2%	4.6%	5.5%	4.8%	4.9%	5.0%
Free cash flow yield	6.3%	9.5%	8.2%	6.6%	7.9%	7.6%	7.1%	9.8%
Earnings yield	7.5%	8.6%	13.7%	9.6%	9.0%	9.3%	8.4%	10.4%
Enterprise value	CA$20.7B	CA$17.6B	CA$15.1B	CA$14.8B	CA$17B	CA$15.9B	CA$17.3B	CA$16B
Net debt / EBITDA	3.29×	4.66×	4.94×	4.46×	4.09×	6.63×	6.85×	7.37×
Cash conversion cycle (days)	425	499	469	513	476	679	-137	-123