Manulife Financial Corporation (MFC) 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

-54.4%

$20.56

vs $45.08 price

Levered DCF

-$0.70

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.21

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	16.16×	15.5×	11.17×	-21.96×	6.79×	7.73×	9.5×	8.21×
P/B	1.66×	1.52×	1.13×	0.99×	0.82×	0.86×	1.05×	0.83×
P/S	1.6×	-10.78×	-7.63×	1.91×	0.78×	0.57×	0.66×	1.03×
EV / EBITDA	8.9×	9.22×	5.36×	-11.05×	3.73×	3.71×	5.26×	4.72×
Gross margin	25.5%	-187.0%	-151.8%	6.8%	31.1%	22.4%	21.9%	45.5%
Operating margin	13.4%	-97.3%	-91.7%	-13.0%	13.6%	8.8%	8.0%	14.8%
Net margin	10.9%	-77.3%	-77.6%	-8.7%	11.1%	6.9%	6.8%	12.5%
Current ratio	0×	0×	0×	0.06×	1.35×	1.68×	1.97×	1.17×
Debt / equity	0.29×	0.27×	0.27×	0.26×	0.21×	0.27×	0.24×	0.29×
Interest coverage	4.64×	4.22×	4.15×	-3.01×	7.98×	5.72×	4.59×	4.34×
Dividend yield	3.9%	4.0%	5.5%	6.0%	5.3%	5.3%	2.7%	4.7%
Payout ratio	57.1%	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%	11.6%	10.3%	10.8%	10.1%
Return on invested capital	0.6%	0.6%	943.9%	2.1%	2.6%	2.1%	2.3%	2.2%
Return on assets	0.6%	0.6%	0.6%	-0.3%	0.7%	0.6%	0.7%	0.6%
Free cash flow yield	37.8%	33.7%	38.1%	36.0%	101.3%	45.4%	196.2%	50.1%
Earnings yield	6.8%	7.2%	10.2%	-4.6%	14.2%	12.1%	10.2%	12.2%
Enterprise value	$84.5B	$66.9B	$46.1B	$39.3B	$36.1B	$31.9B	$42.9B	$35.6B
Net debt / EBITDA	-0.02×	-1.6×	-0.89×	1.91×	-1.11×	-1.41×	-1.06×	-0.36×
Cash conversion cycle (days)	420	0	0	-199	-100	-63	-58	-176