South Bow Corporation (SOBO.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

-117.0%

-CA$8.35

vs CA$49.07 price

Levered DCF

-CA$13.76

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

0.95

Distress zone

Rating

C+

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023
P/E	12.97×	15.51×	10.64×
P/B	2.12×	1.88×	1.65×
P/S	3.55×	2.31×	2.34×
EV / EBITDA	19.22×	9.72×	10.14×
Gross margin	19.2%	82.3%	82.5%
Operating margin	19.7%	35.1%	34.9%
Net margin	27.4%	14.9%	22.0%
Current ratio	1.5×	1.25×	1.25×
Debt / equity	2.14×	2.19×	2.1×
Interest coverage	0.94×	1.92×	3.18×
Dividend yield	7.4%	2.5%	0.0%
Payout ratio	96.1%	38.3%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023
Return on equity	16.3%	12.1%	15.6%
Return on invested capital	2.8%	5.9%	5.6%
Return on assets	3.9%	2.8%	3.7%
Free cash flow yield	9.6%	8.3%	15.8%
Earnings yield	7.7%	6.4%	9.4%
Enterprise value	CA$10.9B	CA$10.2B	CA$13.8B
Net debt / EBITDA	9.15×	5.06×	5.56×
Cash conversion cycle (days)	84	-1,082	-1,735