Merchants Bancorp (MBIN) 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

+567.1%

$351.28

vs $52.66 price

Levered DCF

-$113.91

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

-0.28

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	9.01×	5.77×	7.52×	5.42×	6.6×	4.78×	8.32×	9.58×
P/B	0.69×	0.73×	1.08×	0.72×	1.18×	0.98×	0.87×	1.36×
P/S	1.14×	1.13×	1.55×	1.74×	2.95×	1.98×	2.22×	3.09×
EV / EBITDA	20.16×	12.91×	6.33×	6.01×	4.9×	7.55×	2.34×	5.11×
Gross margin	41.3%	44.4%	43.7%	70.2%	91.6%	82.4%	63.2%	70.2%
Operating margin	19.3%	29.2%	29.3%	48.4%	66.1%	60.7%	40.1%	45.3%
Net margin	16.0%	22.1%	23.5%	36.5%	49.2%	45.0%	30.4%	33.9%
Current ratio	3.17×	0.05×	0.13×	0.06×	0.15×	0.06×	0.15×	0.21×
Debt / equity	1.68×	1.93×	0.57×	0.64×	1.02×	1.52×	0.28×	0.46×
Interest coverage	0.39×	0.54×	0.55×	1.79×	9×	4.15×	1.14×	1.66×
Dividend yield	3.8%	3.1%	2.6%	3.6%	2.3%	3.0%	3.0%	1.8%
Payout ratio	27.2%	16.0%	17.4%	17.3%	13.8%	13.1%	22.3%	16.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.6%	14.3%	16.4%	15.1%	19.7%	22.3%	11.8%	14.9%
Return on invested capital	1.8%	4.7%	9.7%	8.6%	9.9%	8.1%	8.7%	9.6%
Return on assets	1.1%	1.7%	1.6%	1.7%	2.0%	1.9%	1.2%	1.6%
Free cash flow yield	-10.9%	-52.2%	-19.8%	92.1%	-3.9%	-110.6%	-224.6%	33.0%
Earnings yield	14.0%	19.6%	15.2%	20.9%	16.7%	22.7%	13.7%	11.0%
Enterprise value	$5.4B	$5.5B	$2.2B	$1.8B	$1.5B	$1.9B	$240.5M	$431.8M
Net debt / EBITDA	14.32×	9.07×	1.08×	2.43×	0.46×	4.31×	-3.16×	-1.67×
Cash conversion cycle (days)	2,950	21	28	34	19	20	26	27