South Bow Corporation (SOBO) 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

+174.8%

$96.90

vs $35.26 price

Levered DCF

$47.77

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

1.03

Distress zone

Rating

Overall 3 / 5

Ratios by fiscal year

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

Metric	FY2025	FY2024	FY2023
P/E	18.07×	15.51×	7.9×
P/B	2.11×	1.87×	1.23×
P/S	2.88×	2.31×	1.74×
EV / EBITDA	10.16×	9.71×	8.97×
Gross margin	71.8%	70.7%	82.5%
Operating margin	36.0%	35.1%	34.9%
Net margin	21.8%	14.9%	22.0%
Current ratio	1.5×	1.25×	1.26×
Debt / equity	2.14×	2.19×	2.1×
Interest coverage	2.16×	1.92×	3.18×
Dividend yield	7.4%	0.0%	0.0%
Payout ratio	97.8%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023
Return on equity	16.0%	12.1%	15.6%
Return on invested capital	6.3%	5.9%	5.5%
Return on assets	3.9%	2.8%	3.7%
Free cash flow yield	9.6%	7.9%	21.3%
Earnings yield	7.6%	6.5%	12.7%
Enterprise value	$10.9B	$10.2B	$12.2B
Net debt / EBITDA	4.84×	5.06×	5.57×
Cash conversion cycle (days)	-209	-569	-856