Polaris Inc. (PII) 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

-2.3%

$61.08

vs $62.54 price

Levered DCF

$141.43

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.84

Grey zone

Rating

Overall 2 / 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	-7.73×	29.4×	10.76×	10.16×	13.64×	47.17×	19.3×	14.31×
P/B	4.34×	2.52×	3.82×	5.45×	5.5×	5.15×	5.64×	5.53×
P/S	0.5×	0.45×	0.61×	0.7×	0.91×	0.84×	0.92×	0.79×
EV / EBITDA	-44.1×	9.08×	7×	7.34×	9.22×	14.78×	10.98×	9.46×
Gross margin	18.5%	19.6%	21.3%	22.2%	22.8%	23.1%	23.2%	23.4%
Operating margin	-0.4%	3.1%	7.0%	8.8%	8.8%	7.3%	5.9%	6.6%
Net margin	-6.5%	1.5%	5.6%	6.9%	6.6%	1.8%	4.8%	5.5%
Current ratio	0.98×	1.15×	1.39×	1.19×	1.15×	1.17×	1.06×	1.24×
Debt / equity	1.86×	1.71×	1.45×	1.97×	1.54×	1.38×	1.63×	2.26×
Interest coverage	-0.21×	1.55×	4.7×	10.37×	18.22×	8.47×	5.24×	7.01×
Dividend yield	4.2%	4.5%	2.7%	2.5%	2.3%	2.6%	2.4%	3.1%
Payout ratio	-32.3%	133.3%	29.3%	25.4%	31.1%	122.2%	46.0%	44.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-56.2%	8.6%	35.4%	53.7%	40.3%	10.9%	29.2%	38.7%
Return on invested capital	-0.9%	4.7%	13.9%	17.2%	15.3%	15.5%	10.3%	10.4%
Return on assets	-9.5%	2.0%	9.1%	11.3%	9.8%	2.7%	7.3%	8.1%
Free cash flow yield	15.5%	0.2%	9.5%	3.4%	-0.1%	13.6%	6.5%	5.3%
Earnings yield	-12.9%	3.4%	9.3%	9.8%	7.3%	2.1%	5.2%	7.0%
Enterprise value	$5B	$5.2B	$7.1B	$7.8B	$8.1B	$6.8B	$7.9B	$6.6B
Net debt / EBITDA	-12.36×	3.36×	1.66×	1.73×	1.58×	2.04×	2.29×	2.58×
Cash conversion cycle (days)	53	85	70	73	58	40	59	63