Latest Ratios: P/E Ratio 20.0x · EV/EBITDA -4.0x · ROE 13.5%. (1996–2025 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 | $31.9B | $25.8B | $20.7B | $17.5B | $18.5B | $25.0B | $19.5B | $22.9B | $18.8B | $22.9B | $20.4B |
| Enterprise Value | $-12772717435 | $-18941584620 | $-8712125000 | $-6306349680 | $-13296259170 | $-36171790610 | $-35197094880 | $-8530649760 | $-6095548080 | $-15273461940 | $-7508003450 |
| P/E Ratio → | 19.97 | 15.63 | 10.49 | 16.61 | 14.41 | 16.75 | 17.06 | 16.02 | 12.59 | 20.30 | 20.61 |
| P/S Ratio | 3.95 | 3.19 | 2.50 | 2.59 | 2.73 | 3.87 | 3.19 | 3.77 | 3.15 | 4.27 | 4.22 |
| P/B Ratio | 2.54 | 1.99 | 1.62 | 1.47 | 1.64 | 2.08 | 1.67 | 2.07 | 1.79 | 2.25 | 2.09 |
| P/FCF | 5.85 | 4.72 | — | 8.98 | 11.07 | 29.71 | 14.57 | 11.50 | 14.88 | 18.39 | 19.69 |
| P/OCF | 5.77 | 4.65 | — | 6.67 | 7.73 | 18.43 | 10.26 | 8.84 | 10.62 | 13.33 | 13.51 |
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 | — | -2.34 | -1.05 | -0.93 | -1.97 | -5.60 | -5.77 | -1.40 | -1.02 | -2.84 | -1.55 |
| EV / EBITDA | -3.97 | -5.89 | -2.58 | -3.00 | -5.73 | -14.32 | -16.54 | -3.55 | -2.52 | -7.43 | -3.97 |
| EV / EBIT | -5.48 | -8.12 | -3.28 | -4.31 | -7.53 | -18.00 | -21.63 | -4.39 | -3.11 | -9.35 | -4.95 |
| EV / FCF | — | -3.47 | — | -3.23 | -7.97 | -43.02 | -26.34 | -4.28 | -4.83 | -12.24 | -7.24 |
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 | 56.5% | 56.5% | 52.2% | 55.7% | 87.1% | 100.9% | 94.8% | 88.3% | 89.7% | 94.5% | 96.9% |
| Operating Margin | 16.3% | 16.3% | 16.8% | 12.1% | 22.8% | 31.0% | 25.8% | 28.2% | 29.4% | 28.6% | 30.2% |
| Net Profit Margin | 12.1% | 12.1% | 12.8% | 9.1% | 17.2% | 23.8% | 19.2% | 21.6% | 23.4% | 21.0% | 20.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 13.5% | 13.5% | 16.5% | 9.6% | 11.5% | 13.0% | 10.6% | 13.8% | 15.0% | 12.0% | 11.2% |
| ROA | 1.0% | 1.0% | 1.3% | 0.7% | 0.8% | 0.9% | 0.8% | 1.1% | 1.1% | 0.9% | 0.9% |
| ROIC | 6.0% | 6.0% | 6.9% | 4.0% | 5.7% | 7.2% | 5.5% | 6.1% | 6.2% | 5.9% | 6.4% |
| ROCE | 9.0% | 9.0% | 8.7% | 4.9% | 6.9% | 8.2% | 6.2% | 7.5% | 8.2% | 7.3% | 7.5% |
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 | 1.27 | 1.27 | 1.25 | 1.45 | 1.32 | 0.70 | 0.82 | 1.06 | 1.34 | 1.21 | 0.91 |
| Debt / EBITDA | 5.11 | 5.11 | 4.74 | 8.21 | 6.40 | 3.34 | 4.51 | 4.90 | 5.82 | 6.03 | 4.70 |
| Net Debt / Equity | — | -3.45 | -2.30 | -2.00 | -2.82 | -5.09 | -4.68 | -2.83 | -2.37 | -3.74 | -2.86 |
| Net Debt / EBITDA | -13.90 | -13.90 | -8.71 | -11.35 | -13.70 | -24.21 | -25.69 | -13.08 | -10.28 | -18.59 | -14.77 |
| Debt / FCF | — | -8.19 | — | -12.22 | -19.04 | -72.73 | -40.90 | -15.78 | -19.71 | -30.63 | -26.93 |
| Interest Coverage | 0.38 | 0.38 | 0.35 | 0.27 | 1.78 | 84.46 | 8.13 | 2.37 | 2.80 | 4.80 | 8.34 |
Net cash position: cash ($61.1B) exceeds total debt ($16.4B)
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 | 0.41 | 0.41 | 0.45 | 0.54 | 0.60 | 0.68 | 0.75 | 0.75 | 0.72 | 0.56 | 0.49 |
| Quick Ratio | 0.41 | 0.41 | 0.45 | 0.54 | 0.60 | 0.68 | 0.75 | 0.75 | 0.72 | 0.56 | 0.49 |
| Cash Ratio | 0.39 | 0.39 | 0.36 | 0.34 | 0.37 | 0.43 | 0.45 | 0.39 | 0.36 | 0.44 | 0.36 |
| Asset Turnover | — | 0.08 | 0.10 | 0.08 | 0.05 | 0.04 | 0.04 | 0.05 | 0.05 | 0.04 | 0.04 |
| 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 | 1.8% | 2.3% | 2.9% | 3.5% | 4.1% | 2.3% | 3.0% | 2.3% | 2.2% | 1.6% | 1.6% |
| Payout Ratio | 34.1% | 34.1% | 29.7% | 56.1% | 56.2% | 37.7% | 48.3% | 35.5% | 26.0% | 29.8% | 32.3% |
| 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% | 6.4% | 9.5% | 6.0% | 6.9% | 6.0% | 5.9% | 6.2% | 7.9% | 4.9% | 4.9% |
| FCF Yield | 17.1% | 21.2% | — | 11.1% | 9.0% | 3.4% | 6.9% | 8.7% | 6.7% | 5.4% | 5.1% |
| Buyback Yield | 4.0% | 4.9% | 4.5% | 2.0% | 0.2% | 1.1% | 1.5% | 4.8% | 4.9% | 2.3% | 2.0% |
| Total Shareholder Yield | 5.8% | 7.2% | 7.4% | 5.5% | 4.3% | 3.4% | 4.5% | 7.1% | 7.1% | 3.8% | 3.6% |
| Shares Outstanding | — | $189M | $202M | $208M | $209M | $209M | $209M | $216M | $224M | $230M | $229M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying NTRS stock.
Northern Trust Corporation's current P/E ratio is 20.0x. The historical average is 20.1x. This places it at the 53th percentile of its historical range.
Northern Trust Corporation's current EV/EBITDA is -4.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.9x.
Northern Trust Corporation's return on equity (ROE) is 13.5%. The historical average is 14.2%.
Based on historical data, Northern Trust Corporation is trading at a P/E of 20.0x. This is at the 53th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Northern Trust Corporation's current dividend yield is 1.80% with a payout ratio of 34.1%.
Northern Trust Corporation has 56.5% gross margin and 16.3% operating margin. Operating margin between 10-20% is typical for established companies.
Northern Trust Corporation's Debt/EBITDA ratio is 5.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
NII erosion and revenue contraction
Metrics are mathematically derived from official filings.
Premium Multiple Hinges on Earnings Quality
NTRS trades at 2.66x book and 20.9x trailing earnings, per market data, a premium to trust-bank peers STT and BK, implying the market prices in durable fee-based returns despite revenue contraction.
The forward P/E of 15.9x suggests investors expect a sharp earnings rebound, likely driven by the Q2 2026 EPS beat, but the sustainability of that beat is questionable given the 9.9% TTM revenue decline. The P/B premium over STT (1.90x) and BK (2.23x) appears justified by NTRS's higher-margin wealth management mix, yet it leaves little room for disappointment if fee income stalls. The market appears to be pricing NTRS as a quality franchise, but the multiple implies ROTCE expectations that may be aggressive if NII continues to erode.
ROE Recovery Masks Structural Drags
ROE improved to 6.0% in Q2 2026 from 3.3% a year earlier, per financial statements, but remains below the 10%+ levels of peers like STT and BK, reflecting a low-return balance sheet.
The DuPont decomposition shows ROE is constrained by a razor-thin NIM of 0.4% and modest leverage (equity-to-assets at 7%), which together cap asset returns at 0.4% ROA. The improvement in ROE is driven by a higher fee mix (48% of revenue) and a better efficiency ratio (38.9%), not by balance sheet productivity. This suggests the earnings power is shifting toward fee-based businesses, but the low NIM remains a structural drag that limits the ceiling on returns.
NIM Floor Persists Despite Rate Shifts
NIM held at 0.4% for Q2 2026, as reported in financial statements, unchanged from prior quarters, while the efficiency ratio improved to 38.9% from 41.5% in Q4 2025, indicating cost discipline amid flat spreads.
The persistently low NIM suggests the bank's funding advantage is not translating into spread income, likely due to elevated cash balances and securities reinvestment at lower yields. The efficiency ratio improvement is notable, but it may reflect cost cuts rather than revenue growth, as TTM revenue is down 9.9%. Investors should monitor whether the efficiency gains are sustainable or if they come at the expense of technology investment needed to support the custody franchise.
Thin Equity Buffer Limits Flexibility
Equity-to-assets stood at 7% in Q2 2026, per balance sheet data, a modest buffer that constrains capital return capacity, though the low debt/equity of 1.27% suggests a conservative funding structure.
The 7% equity ratio is below the 8%+ typical for large trust banks, indicating limited headroom for aggressive buybacks or dividend increases without raising capital. The low debt/equity ratio, while appearing conservative, may reflect a specific reporting treatment of long-term debt that warrants verification against regulatory capital metrics. Given the balance sheet expansion of 15.3% YoY, the capital base is being stretched, and any further asset growth could pressure CET1 ratios.
Benign Credit Masks Provision Timing
Loan loss provisions were a net release of $5.3M in Q2 2026, per SEC filings, indicating minimal credit stress, but the low provision levels may not reflect forward-looking risks in a volatile rate environment.
The provision release added to pre-tax income, boosting the EPS beat, but it also signals that credit costs are not a current drag. However, the loan book appears stable with no significant charge-offs, suggesting the asset quality is solid. The risk is that the provision release is a one-time benefit, and if credit conditions deteriorate, the earnings impact could reverse quickly.
P/E Distorted by One-Time Gains
The trailing P/E of 20.9x, based on market data, may overstate valuation quality because Q2 2026 EPS included notable items, per the earnings release, inflating earnings and compressing the multiple artificially.
The 51% EPS beat over consensus was partly attributed to 'notable items,' which likely include one-time gains or provision releases, not recurring operating income. Using adjusted earnings, the P/E would be higher, making the stock appear less cheap than the headline multiple suggests. A better metric is P/TBV, which at 2.66x (based on tangible book value of $68.65) reflects the franchise value without the earnings volatility, but it still prices in a premium that may not be justified if fee growth remains negative.