Manulife Financial Corporation (MFC-PC.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

+38.7%

CA$86.94

vs CA$62.68 price

Levered DCF

CA$409.19

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.2

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	16.18×	15.49×	11.18×	-21.95×	6.79×	7.7×	9.52×	8.28×
P/B	1.67×	1.52×	1.14×	0.99×	0.8×	0.85×	1.06×	0.83×
P/S	1.6×	1.72×	1.27×	1.95×	0.78×	0.57×	0.66×	1.03×
EV / EBITDA	10.72×	9.21×	7.93×	-11.04×	3.73×	3.69×	5.26×	4.72×
Gross margin	25.5%	33.1%	32.3%	4.2%	42.2%	30.2%	30.0%	62.1%
Operating margin	13.4%	15.6%	15.2%	-13.3%	13.6%	8.8%	8.0%	14.8%
Net margin	10.9%	12.4%	12.9%	-8.9%	11.1%	6.9%	6.8%	12.5%
Current ratio	2.12×	196.35×	38.99×	0×	0×	1.32×	1.01×	1.17×
Debt / equity	0.29×	0.27×	0.27×	0.26×	0.2×	0.27×	0.24×	0.29×
Interest coverage	4.64×	4.22×	4.15×	-2.99×	8.04×	5.73×	4.72×	4.33×
Dividend yield	3.9%	4.0%	5.5%	6.0%	5.3%	5.3%	2.7%	4.7%
Payout ratio	57.2%	56.1%	54.4%	-132.7%	37.6%	43.9%	26.5%	38.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.3%	10.9%	11.6%	-4.5%	11.4%	10.3%	10.8%	10.1%
Return on invested capital	0.6%	0.6%	0.7%	-0.8%	2.4%	2.2%	2.4%	2.2%
Return on assets	0.6%	0.6%	0.6%	-0.2%	0.7%	0.6%	0.7%	0.6%
Free cash flow yield	37.8%	33.7%	38.0%	36.0%	49.5%	45.6%	39.8%	50.0%
Earnings yield	6.8%	7.2%	10.2%	-4.6%	14.2%	12.1%	10.2%	12.2%
Enterprise value	CA$72.8B	CA$66.9B	CA$52.3B	CA$39.3B	CA$36.1B	CA$31.8B	CA$43B	CA$35.6B
Net debt / EBITDA	-1.77×	-1.6×	-0.22×	1.91×	-1.11×	-1.41×	-1.06×	-0.36×
Cash conversion cycle (days)	375	0	0	-198	-407	-282	-231	-820