Northern Trust Corporation (NTRS) 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

+126.2%

$386.88

vs $171.04 price

Levered DCF

$427.78

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

0.04

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	15.54×	10.46×	16.58×	14.37×	16.71×	17×	15.95×	12.51×
P/B	1.98×	1.61×	1.47×	1.64×	2.07×	1.66×	2.05×	1.78×
P/S	1.79×	1.3×	1.44×	2.38×	3.84×	3.08×	3.31×	2.8×
EV / EBITDA	-6.14×	-2.6×	-3.02×	-5.75×	-14.36×	-16.57×	-3.6×	-2.57×
Gross margin	56.5%	52.2%	55.7%	87.1%	100.9%	94.8%	88.3%	89.7%
Operating margin	16.3%	16.8%	12.1%	22.8%	31.0%	25.8%	28.2%	29.4%
Net margin	12.1%	12.8%	9.1%	17.2%	23.8%	19.2%	21.6%	23.4%
Current ratio	0.41×	0.45×	0.54×	0.6×	0.68×	0.75×	0.75×	0.72×
Debt / equity	1.27×	1.25×	1.45×	1.32×	0.7×	0.82×	1.06×	1.34×
Interest coverage	0.38×	0.35×	0.27×	1.78×	84.46×	8.13×	2.37×	2.8×
Dividend yield	2.5%	3.1%	3.8%	4.3%	2.5%	3.2%	2.5%	2.4%
Payout ratio	36.5%	31.7%	59.9%	59.6%	40.5%	52.1%	38.6%	29.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	13.4%	15.9%	9.3%	11.9%	12.9%	10.3%	13.5%	14.8%
Return on invested capital	5.0%	6.2%	3.2%	4.3%	6.4%	4.6%	5.4%	5.6%
Return on assets	1.0%	1.3%	0.7%	0.9%	0.8%	0.7%	1.1%	1.2%
Free cash flow yield	21.3%	-6.0%	11.1%	9.1%	3.4%	6.9%	8.7%	6.8%
Earnings yield	6.8%	9.8%	6.3%	7.2%	6.2%	6.2%	6.5%	8.3%
Enterprise value	-$19.1B	-$8.8B	-$6.3B	-$13.3B	-$36.3B	-$35.3B	-$8.6B	-$6.2B
Net debt / EBITDA	-14.37×	-8.71×	-11.35×	-13.7×	-24.21×	-25.69×	-13.08×	-10.28×
Cash conversion cycle (days)	0	1	6	80	110	68	48	95