Latest Ratios: P/E Ratio 19.9x · EV/EBITDA 12.8x · ROE 11.0%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $71.6B | $62.0B | $54.8B | $40.6B | $34.1B | $37.1B | $34.6B | $39.8B | $28.2B | $41.4B | $35.2B |
| Enterprise Value | $71.5B | $61.7B | $43.2B | $33.0B | $27.3B | $26.4B | $22.5B | $31.2B | $25.5B | $38.6B | $33.0B |
| P/E Ratio → | 19.92 | 11.82 | 10.81 | 8.47 | — | 5.39 | 6.08 | 7.32 | 6.04 | 21.29 | 12.64 |
| P/S Ratio | 1.93 | 1.17 | — | — | 1.41 | 0.62 | 0.45 | 0.51 | 0.76 | 0.73 | 0.68 |
| P/B Ratio | 1.99 | 1.18 | 1.04 | 0.83 | 0.70 | 0.63 | 0.65 | 0.79 | 0.60 | 0.98 | 0.82 |
| P/FCF | 3.18 | 1.93 | 2.07 | 1.99 | 2.05 | 0.78 | 1.73 | 0.39 | 1.47 | 2.33 | 2.07 |
| P/OCF | 3.18 | 1.93 | 2.07 | 1.99 | 2.05 | 1.60 | 1.73 | 1.94 | 1.47 | 2.33 | 2.07 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.16 | — | — | 1.13 | 0.44 | 0.29 | 0.40 | 0.68 | 0.68 | 0.64 |
| EV / EBITDA | 12.78 | 7.74 | 7.74 | 4.69 | — | 3.05 | 3.02 | 4.55 | 4.07 | 12.62 | 8.19 |
| EV / EBIT | 14.36 | 7.16 | 4.92 | 4.12 | — | 2.89 | 2.82 | 4.13 | 3.75 | 10.61 | 7.59 |
| EV / FCF | — | 1.92 | 1.63 | 1.62 | 1.64 | 0.56 | 1.12 | 0.31 | 1.33 | 2.17 | 1.93 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.5% | 25.5% | -187.0% | -151.8% | 6.8% | 31.1% | 22.4% | 21.9% | 45.5% | 21.7% | 24.9% |
| Operating Margin | 13.4% | 13.4% | -97.3% | -91.7% | -13.0% | 13.6% | 8.8% | 8.0% | 14.8% | 4.4% | 6.4% |
| Net Profit Margin | 10.9% | 10.9% | -77.3% | -77.6% | -8.7% | 11.1% | 6.9% | 6.8% | 12.5% | 3.7% | 5.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.0% | 11.0% | 11.1% | 11.2% | -3.9% | 11.9% | 10.3% | 10.8% | 10.5% | 4.9% | 7.1% |
| ROA | 0.6% | 0.6% | 0.6% | 0.6% | -0.2% | 0.7% | 0.6% | 0.7% | 0.6% | 0.3% | 0.4% |
| ROIC | 11.4% | 11.4% | 12.9% | 11.7% | -5.2% | 13.7% | 12.3% | 10.9% | 9.9% | 4.7% | 6.7% |
| ROCE | 0.7% | 0.7% | 0.8% | 0.8% | -0.5% | 0.9% | 0.8% | 0.8% | 0.8% | 0.3% | 0.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.28 | 0.28 | 0.27 | 0.26 | 0.25 | 0.20 | 0.26 | 0.23 | 0.29 | 0.31 | 0.30 |
| Debt / EBITDA | 1.84 | 1.84 | 2.54 | 1.81 | — | 1.37 | 1.88 | 1.70 | 2.15 | 4.30 | 3.20 |
| Net Debt / Equity | — | -0.00 | -0.22 | -0.16 | -0.14 | -0.18 | -0.23 | -0.17 | -0.06 | -0.07 | -0.05 |
| Net Debt / EBITDA | -0.03 | -0.03 | -2.08 | -1.08 | — | -1.24 | -1.64 | -1.26 | -0.43 | -0.91 | -0.57 |
| Debt / FCF | — | -0.01 | -0.44 | -0.37 | -0.41 | -0.23 | -0.61 | -0.09 | -0.14 | -0.16 | -0.13 |
| Interest Coverage | 5.64 | 5.64 | 5.22 | 5.15 | -2.00 | 8.97 | 6.72 | 5.56 | 5.35 | 3.15 | 4.25 |
Net cash position: cash ($14.9B) exceeds total debt ($14.7B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | — | — | — | — | 0.06 | 1.35 | 1.68 | 1.97 | 1.17 | 1.74 | 1.57 |
| Quick Ratio | — | — | — | — | 0.06 | 1.35 | 1.68 | 1.97 | 1.17 | 1.74 | 1.57 |
| Cash Ratio | — | — | — | — | 0.05 | 1.27 | 1.59 | 1.84 | 1.08 | 1.63 | 1.49 |
| Asset Turnover | — | 0.05 | -0.01 | -0.01 | 0.03 | 0.07 | 0.09 | 0.10 | 0.05 | 0.08 | 0.07 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.2% | 5.3% | 5.8% | 7.3% | 8.2% | 6.7% | 6.8% | 3.5% | 6.3% | 4.3% | 4.5% |
| Payout Ratio | 57.1% | 57.1% | 56.1% | 54.4% | — | 37.6% | 43.9% | 26.5% | 38.3% | 86.1% | 53.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.0% | 8.5% | 9.2% | 11.8% | — | 18.6% | 16.4% | 13.7% | 16.6% | 4.7% | 7.9% |
| FCF Yield | 31.4% | 51.8% | 48.3% | 50.3% | 48.7% | 127.7% | 57.9% | 254.1% | 68.0% | 42.9% | 48.4% |
| Buyback Yield | 2.4% | 3.9% | 6.0% | 3.9% | 5.5% | 1.6% | 0.7% | 3.4% | 1.7% | 0.0% | 0.0% |
| Total Shareholder Yield | 5.5% | 9.2% | 11.7% | 11.2% | 13.7% | 8.4% | 7.5% | 6.9% | 8.0% | 4.3% | 4.5% |
| Shares Outstanding | — | $1.7B | $1.8B | $1.8B | $1.9B | $1.9B | $1.9B | $2.0B | $2.0B | $2.0B | $2.0B |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying MFC stock.
Manulife Financial Corporation's current P/E ratio is 19.9x. The historical average is 13.5x. This places it at the 88th percentile of its historical range.
Manulife Financial Corporation's current EV/EBITDA is 12.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.0x.
Manulife Financial Corporation's return on equity (ROE) is 11.0%. The historical average is 9.4%.
Based on historical data, Manulife Financial Corporation is trading at a P/E of 19.9x. This is at the 88th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Manulife Financial Corporation's current dividend yield is 3.16% with a payout ratio of 57.1%.
Manulife Financial Corporation has 25.5% gross margin and 13.4% operating margin. Operating margin between 10-20% is typical for established companies.
Manulife Financial Corporation's Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
WAM outflows and regulatory scrutiny
Underwriting Discipline Improves
Manulife's combined ratio improved to 85.9% in 2026Q2 from 96.4% in 2024Q1, indicating stronger underwriting discipline, though loss ratios remain volatile due to IFRS 17 adjustments, as per financial statements.
The combined ratio trajectory shows a clear improvement, with the latest quarter at 85.9% versus 96.4% two years prior, suggesting that underwriting profitability has strengthened. However, the loss ratio component has swung dramatically, from 92.1% in 2024Q1 to 77.6% in 2026Q2, reflecting the impact of IFRS 17 transition and possibly reserve releases. Investors should monitor whether this improvement is sustainable or if it is partly driven by accounting changes rather than operational gains.
ROE Recovery Amid Volatility
ROE has recovered to 4.0% in 2026Q2 from a low of 1.0% in 2025Q1, but remains below peer averages, suggesting that underwriting profits and investment income are not yet translating into strong shareholder returns, as reported in quarterly filings.
The quarterly ROE figures show a recovery from the trough in 2025Q1, but the absolute level remains modest compared to peers like Sun Life (12.8%) and MetLife (12.6%). This suggests that while underwriting margins have improved, the overall profitability is still constrained by legacy blocks and the cost of capital. The decomposition of ROE indicates that investment income on float is a significant contributor, but the volatility in loss ratios and the drag from WAM outflows may be limiting the upside.
Expense Ratio Shows Scale Benefits
The expense ratio has generally trended lower, reaching 8.3% in 2026Q2, down from 17.5% in 2025Q1, indicating scale benefits and cost discipline, though the WAM division's net outflows may pressure fee-based margins, as per recent disclosures.
The expense ratio, as implied by the combined ratio, has shown improvement, with the latest quarter at 8.3% versus 17.5% in 2025Q1. This suggests that Manulife is leveraging its scale in Asia and the U.S. to control costs. However, the persistent net outflows in the Global WAM division could undermine fee-based revenue growth, potentially offsetting some of these efficiency gains. Investors should watch whether the expense ratio remains stable as the company continues to invest in technology and distribution.
Leverage Stable but Elevated
The premium-to-surplus ratio, approximated by the equity-to-assets ratio, has declined slightly as assets grew 21% while equity rose only 9.7%, suggesting increased underwriting leverage, though the D/E ratio remains low at 0.26, as per balance sheet data.
The balance sheet shows that total assets grew from $907.2B in 2024Q1 to $1.1T in 2026Q2, while equity increased from $48.6B to $53.3B, implying a slight decline in the equity-to-assets ratio. This suggests that Manulife is taking on more underwriting leverage relative to its capital base, which could be a concern if asset quality deteriorates. However, the debt-to-equity ratio of 0.26 is conservative, and the LICAT ratio remains robust, indicating that the company has adequate capital buffers.
Valuation Discount to Peers
Manulife trades at a P/B of 2.00, below Sun Life's 2.59 and MetLife's 2.23, and its forward P/E of 9.74 is lower than most peers, suggesting the market applies a complexity discount due to legacy North American blocks, as per current valuation metrics.
The valuation multiples indicate that Manulife is trading at a discount to its primary peers, both on P/B and forward P/E. This discount likely reflects the market's concerns about the legacy LTC and variable annuity blocks, as well as the complexity of the Asia operations. However, if the company can demonstrate consistent CSM growth and successful de-risking, there may be potential for re-rating. The current forward P/E of 9.74 implies that the market expects earnings to improve significantly, which could be achievable if the Asia growth engine continues to recover.
Misapplied Ratio: P/E
The P/E ratio is commonly misapplied to insurers like Manulife because earnings are volatile due to investment gains and IFRS 17 adjustments, obscuring underlying profitability; instead, P/B and ROE are more appropriate, as per industry practice.
For life insurers, the P/E ratio can be misleading because reported earnings are heavily influenced by investment returns, actuarial assumption changes, and accounting transitions like IFRS 17. Manulife's trailing P/E of 20.04 versus forward P/E of 9.74 highlights this volatility, as the market expects a sharp earnings rebound. A more reliable approach is to use P/B in conjunction with ROE, as book value represents the invested assets backing reserves. Investors should also consider the CSM as a measure of future profitability, as it reflects the unearned profit from in-force policies.