Valley National Bancorp (VLY) 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

+14.8%

$16.79

vs $14.62 price

Levered DCF

$26.91

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

-0.62

Distress zone

Rating

A-

Overall 4 / 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	11.45×	12.94×	11.43×	9.92×	12.17×	10.37×	13.01×	11.84×
P/B	0.84×	0.63×	0.82×	0.86×	1.1×	0.86×	0.88×	0.88×
P/S	1.87×	1.31×	1.64×	2.52×	3.76×	2.51×	2.52×	2.27×
EV / EBITDA	11.88×	12.52×	10.94×	7.72×	8.63×	10.43×	13.28×	16.89×
Gross margin	53.9%	42.9%	54.7%	82.7%	89.4%	75.1%	70.9%	74.1%
Operating margin	21.3%	12.3%	20.2%	35.8%	43.0%	33.8%	29.7%	25.5%
Net margin	17.1%	10.6%	14.9%	26.1%	31.8%	24.9%	20.2%	20.2%
Current ratio	0.75×	0.05×	0.05×	0.05×	0.09×	0.08×	0.07×	0.08×
Debt / equity	0.44×	0.5×	0.55×	0.33×	0.48×	0.82×	0.82×	1.14×
Interest coverage	0.51×	0.25×	0.46×	2.43×	5.15×	2×	1.08×	1.09×
Dividend yield	4.3%	5.3%	4.3%	4.0%	3.4%	4.8%	4.1%	5.3%
Payout ratio	46.5%	65.6%	48.1%	38.5%	40.6%	48.8%	51.4%	59.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.7%	5.1%	7.4%	8.9%	9.3%	8.5%	7.1%	7.8%
Return on invested capital	0.9%	3.1%	4.8%	6.7%	6.3%	4.7%	3.9%	3.6%
Return on assets	0.9%	0.6%	0.8%	1.0%	1.1%	1.0%	0.8%	0.8%
Free cash flow yield	5.3%	11.7%	6.9%	26.0%	14.9%	4.2%	6.8%	10.3%
Earnings yield	9.1%	8.1%	9.0%	10.4%	8.5%	9.9%	8.0%	8.9%
Enterprise value	$9.7B	$6.5B	$8.3B	$6.6B	$6B	$6.4B	$7B	$6.3B
Net debt / EBITDA	3.83×	3.48×	3.7×	1.34×	0.53×	4×	5.96×	9.06×
Cash conversion cycle (days)	25	25	27	33	24	25	25	27