Mainstreet Equity Corp. (MEQ.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

+86.9%

CA$329.95

vs CA$176.55 price

Levered DCF

CA$218.25

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

1.37

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	6.05×	8.91×	11.33×	8.22×	4.32×	9.82×	9.93×	6.22×
P/B	0.96×	1.17×	0.94×	0.82×	0.89×	0.78×	0.73×	0.6×
P/S	6.29×	7.13×	5.9×	5.48×	6.09×	4.5×	4.23×	3.91×
EV / EBITDA	9.13×	23.77×	23.88×	25.12×	27.01×	22.52×	22.46×	23.02×
Gross margin	66.4%	64.2%	62.5%	60.7%	61.2%	62.1%	62.7%	62.4%
Operating margin	59.3%	57.0%	54.3%	52.5%	53.5%	53.8%	53.7%	52.5%
Net margin	103.9%	80.0%	52.1%	66.8%	141.0%	45.8%	42.6%	62.9%
Current ratio	1.13×	0.41×	0.64×	0.52×	0.52×	0.41×	0.04×	0.13×
Debt / equity	1.06×	1.09×	1.19×	1.18×	1.24×	1.36×	1.34×	1.28×
Interest coverage	2.92×	0×	0×	0×	0×	0×	0×	0×
Dividend yield	0.1%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.5%	0.4%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	15.9%	13.2%	8.3%	10.0%	20.6%	7.9%	7.3%	9.7%
Return on invested capital	3.4%	3.5%	2.9%	2.8%	2.8%	3.1%	3.2%	2.6%
Return on assets	7.0%	5.7%	3.5%	4.2%	8.4%	3.1%	2.9%	3.9%
Free cash flow yield	4.9%	5.2%	5.8%	5.3%	3.6%	5.1%	6.7%	7.2%
Earnings yield	16.5%	11.2%	8.8%	12.2%	23.1%	10.2%	10.1%	16.1%
Enterprise value	CA$3.6B	CA$3.4B	CA$2.7B	CA$2.4B	CA$2.3B	CA$1.8B	CA$1.7B	CA$1.4B
Net debt / EBITDA	4.77×	11.25×	13.01×	14.66×	15.63×	14.16×	14.57×	15.64×
Cash conversion cycle (days)	-33	3	23	34	101	-44	-43	-39