Novanta Inc. (NOVT) 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

-71.9%

$41.13

vs $146.24 price

Levered DCF

$30.25

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

7.69

Safe 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	80.95×	85.83×	82.96×	65.32×	124.18×	93.09×	76.24×	43.15×
P/B	3.31×	7.37×	8.96×	8.39×	11.97×	8.71×	7.43×	5.97×
P/S	4.44×	5.79×	6.85×	5.63×	8.83×	7.03×	4.95×	3.58×
EV / EBITDA	28.19×	32.52×	37.29×	32.58×	52.74×	43.73×	29.92×	20.03×
Gross margin	41.6%	44.4%	45.4%	44.0%	42.5%	41.4%	41.9%	42.6%
Operating margin	11.9%	11.6%	12.5%	12.0%	9.1%	9.5%	8.8%	11.6%
Net margin	5.5%	6.8%	8.3%	8.6%	7.1%	7.5%	6.5%	8.0%
Current ratio	3.69×	2.58×	2.98×	2.56×	2.03×	2.66×	2.26×	2.7×
Debt / equity	0.26×	0.63×	0.6×	0.85×	0.95×	0.53×	0.66×	0.56×
Interest coverage	5.43×	3.51×	4.28×	6.6×	8.67×	8.51×	6.51×	7.24×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	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	4.1%	8.6%	10.8%	12.8%	9.7%	9.3%	9.8%	13.3%
Return on invested capital	5.5%	7.3%	8.7%	8.0%	5.4%	6.7%	6.6%	9.5%
Return on assets	3.0%	4.6%	5.9%	6.0%	4.1%	5.1%	4.7%	6.8%
Free cash flow yield	1.1%	2.6%	1.7%	1.5%	1.2%	3.1%	1.7%	3.4%
Earnings yield	1.2%	1.2%	1.2%	1.5%	0.8%	1.1%	1.3%	2.2%
Enterprise value	$4.3B	$5.8B	$6.3B	$5.2B	$6.6B	$4.3B	$3.3B	$2.3B
Net debt / EBITDA	-0.26×	1.98×	1.76×	2.42×	3×	1.33×	1.79×	1.08×
Cash conversion cycle (days)	128	105	128	129	111	99	117	106