National Bank of Canada (NA-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

+226.3%

CA$699.00

vs CA$214.21 price

Levered DCF

CA$841.50

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

0.11

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	15.39×	12.32×	9.1×	9.54×	11.47×	11.16×	10.64×	9.94×
P/B	1.76×	1.77×	1.23×	1.44×	1.85×	1.31×	1.54×	1.45×
P/S	1.93×	4.17×	2.98×	3.25×	3.89×	1.93×	3.12×	2.84×
EV / EBITDA	31.31×	17.47×	10.69×	9.36×	9.96×	9.74×	16.57×	14.52×
Gross margin	42.2%	100.1%	104.0%	100.0%	100.0%	71.0%	100.0%	100.1%
Operating margin	16.7%	42.0%	47.5%	48.8%	49.8%	27.8%	45.3%	45.0%
Net margin	13.0%	35.2%	34.1%	35.2%	35.3%	18.4%	30.9%	30.1%
Current ratio	0.09×	0.12×	0.21×	0.2×	0.13×	0.22×	0.12×	0.13×
Debt / equity	4.44×	2.93×	2.26×	2.06×	2.34×	2.23×	2.84×	2.63×
Interest coverage	0.31×	0.27×	0.35×	1.1×	2.01×	0.93×	0.72×	0.9×
Dividend yield	3.3%	3.6%	5.2%	4.2%	3.2%	6.1%	4.4%	4.5%
Payout ratio	48.6%	43.0%	45.0%	39.2%	35.1%	63.7%	44.0%	42.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.9%	14.9%	14.1%	15.6%	16.8%	12.5%	15.3%	15.3%
Return on invested capital	1.7%	2.5%	1.8%	4.3%	-7.9%	3.7%	1.7%	1.7%
Return on assets	0.7%	0.8%	0.8%	0.8%	0.9%	0.6%	0.8%	0.8%
Free cash flow yield	7.0%	8.8%	15.5%	-8.3%	16.0%	90.7%	34.1%	26.5%
Earnings yield	6.8%	8.5%	11.5%	10.8%	9.1%	9.5%	9.9%	10.6%
Enterprise value	CA$181.2B	CA$88.4B	CA$47.4B	CA$44.3B	CA$44.4B	CA$28.8B	CA$51B	CA$44.3B
Net debt / EBITDA	21.07×	8.55×	4.12×	2.75×	2.19×	2.49×	9.17×	7.87×
Cash conversion cycle (days)	-92	109	5,075	173	138	-289	105	146,057