NatWest Group plc (NWG) Financial Ratios
30 years of historical data (1996–2025) · Financial Services · Banks - Diversified
EV/EBITDA
↑
1.02
↓-59% vs avg
5yr avg: 2.49
30Y Low2.5·High69.0
P/FCF
↑
3.90
↓-69% vs avg
5yr avg: 12.56
30Y Low0.3·High190.1
P/B Ratio
↑
0.54
+4% vs avg
5yr avg: 0.52
30Y Low0.2·High5.7
ROE
↑
14.2%
↓+27% vs avg
5yr avg: 11.2%
30Y Low-30%·High23%
Debt/EBITDA
↓
8.10
↓-14% vs avg
5yr avg: 9.43
30Y Low2.0·High26.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
NWG Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
NatWest Group plc trades at 4.2x earnings, 16% below its 5-year average of 5.0x, sitting at the 11th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.1x, the stock trades at a discount of 68%. On a free-cash-flow basis, the stock trades at 3.9x P/FCF, 69% below the 5-year average of 12.6x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $30.6B | $35.6B | $21.7B | $13.0B | $16.0B | $17.8B | $13.7B | $19.5B | $16.9B | $22.8B | $16.2B |
| Enterprise Value | $12.3B | $22.0B | $-5479070000 | $-31467257500 | $-73709665000 | $-101682229680 | $-54433169840 | $-4669812580 | $-22132752500 | $-32251844833 | $-11338721140 |
| P/E Ratio → | 4.20 | 6.48 | 4.80 | 2.87 | 4.75 | 6.09 | — | 6.20 | 10.75 | 30.48 | — |
| P/S Ratio | 0.77 | 1.21 | 0.76 | 0.52 | 0.99 | 1.48 | 1.05 | 1.30 | 1.07 | 1.54 | 1.09 |
| P/B Ratio | 0.54 | 0.83 | 0.55 | 0.35 | 0.44 | 0.43 | 0.31 | 0.45 | 0.36 | 0.46 | 0.33 |
| P/FCF | 3.90 | 6.14 | 31.20 | — | — | 0.34 | 0.48 | — | — | 0.61 | — |
| P/OCF | 3.19 | 5.03 | 12.22 | — | — | 0.33 | 0.47 | — | — | 0.59 | — |
P/E links to full P/E history page with 30-year chart
NWG EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
NatWest Group plc's enterprise value stands at 1.0x EBITDA, 59% below its 5-year average of 2.5x. The Financial Services sector median is 11.5x, placing the stock at a 91% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.75 | -0.19 | -1.27 | -4.56 | -8.45 | -4.16 | -0.31 | -1.41 | -2.18 | -0.76 |
| EV / EBITDA | 1.02 | 2.49 | -0.76 | -4.42 | -12.36 | -21.33 | -150.78 | -0.90 | -5.36 | -10.48 | — |
| EV / EBIT | 1.17 | 2.86 | -0.88 | -5.09 | -14.36 | -26.45 | — | -1.17 | -6.59 | -14.40 | — |
| EV / FCF | — | 3.80 | -7.89 | — | — | -1.93 | -1.90 | — | — | -0.86 | — |
NWG Profitability
Margins and return-on-capital ratios measuring operating efficiency
NatWest Group plc earns an operating margin of 26.1%, above the Financial Services sector average of 21.6%. Operating margins have expanded from 25.0% to 26.1% over the past 3 years, signaling improving operational efficiency. ROE of 14.2% is modest. ROIC of 5.3% represents adequate returns on invested capital versus a sector median of 5.7%.
Margins
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 | 56.3% | 56.3% | 51.3% | 59.7% | 82.7% | 85.9% | 82.3% | 77.9% | 84.8% | 86.1% | 82.9% |
| Operating Margin | 26.1% | 26.1% | 21.7% | 25.0% | 31.8% | 31.9% | -4.2% | 26.5% | 21.3% | 15.2% | -27.4% |
| Net Profit Margin | 19.8% | 19.8% | 16.8% | 18.7% | 22.2% | 27.1% | -2.8% | 23.5% | 13.7% | 10.0% | -35.3% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.2% | 14.2% | 12.5% | 12.6% | 9.2% | 7.6% | -0.9% | 7.9% | 4.5% | 3.0% | -10.2% |
| ROA | 0.8% | 0.8% | 0.7% | 0.7% | 0.5% | 0.4% | -0.0% | 0.5% | 0.3% | 0.2% | -0.7% |
| ROIC | 5.3% | 5.3% | 4.6% | 4.9% | 4.0% | 2.9% | -0.4% | 3.0% | 2.7% | 1.8% | -3.0% |
| ROCE | 3.3% | 3.3% | 2.7% | 2.7% | 2.1% | 1.4% | -0.2% | 1.0% | 0.6% | 0.4% | -0.9% |
NWG Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
NatWest Group plc carries a Debt/EBITDA ratio of 8.1x, which is highly leveraged (96% above the sector average of 4.1x). The company holds a net cash position — cash of $85.3B exceeds total debt of $71.8B, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of just 0.6x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.69 | 1.69 | 1.67 | 1.62 | 1.52 | 1.40 | 1.29 | 1.31 | 1.07 | 0.88 | 0.94 |
| Debt / EBITDA | 8.10 | 8.10 | 9.09 | 8.45 | 9.27 | 12.24 | 156.59 | 10.93 | 12.09 | 14.07 | — |
| Net Debt / Equity | — | -0.32 | -0.69 | -1.20 | -2.46 | -2.86 | -1.55 | -0.55 | -0.84 | -1.12 | -0.56 |
| Net Debt / EBITDA | -1.53 | -1.53 | -3.74 | -6.25 | -15.05 | -25.07 | -188.66 | -4.64 | -9.45 | -17.90 | — |
| Debt / FCF | — | -2.34 | -39.09 | — | — | -2.26 | -2.37 | — | — | -1.46 | — |
| Interest Coverage | 0.60 | 0.60 | 0.45 | 0.62 | 1.84 | 2.26 | -0.24 | 1.20 | 1.40 | 1.09 | -1.60 |
Net cash position: cash ($85.3B) exceeds total debt ($71.8B)
NWG Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.20x is below 1.0, meaning current liabilities exceed current assets — though the company's $85.3B cash position helps mitigate short-term liquidity concerns.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.20 | 0.20 | 0.22 | 0.25 | 0.32 | 0.49 | 0.43 | 0.34 | 0.39 | 0.90 | 0.23 |
| Quick Ratio | 0.20 | 0.20 | 0.22 | 0.25 | 0.32 | 0.49 | 0.43 | 0.34 | 0.39 | 0.90 | 0.23 |
| Cash Ratio | 0.18 | 0.18 | 0.19 | 0.22 | 0.30 | 0.34 | 0.25 | 0.19 | 0.39 | 0.89 | 0.22 |
| Asset Turnover | — | 0.04 | 0.04 | 0.04 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
NWG Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
NatWest Group plc returns 21.7% to shareholders annually — split between a 10.3% dividend yield and 11.3% buyback yield. A payout ratio of 40.7% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 23.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 10.3% | 6.7% | 8.3% | 13.1% | 20.0% | 5.7% | 2.8% | 17.6% | 4.8% | 2.7% | 10.4% |
| Payout Ratio | 40.7% | 40.7% | 37.5% | 36.7% | 89.3% | 31.1% | — | 96.8% | 37.2% | 41.5% | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 23.8% | 15.4% | 20.8% | 34.8% | 21.1% | 16.4% | — | 16.1% | 9.3% | 3.3% | — |
| FCF Yield | 25.7% | 16.3% | 3.2% | — | — | 296.4% | 210.0% | — | — | 164.9% | — |
| Buyback Yield | 11.3% | 7.2% | 12.5% | 18.6% | 12.8% | 10.1% | 0.0% | 0.1% | 16.8% | 3.4% | 8.0% |
| Total Shareholder Yield | 21.7% | 13.9% | 20.9% | 31.7% | 32.8% | 15.8% | 2.8% | 17.7% | 21.5% | 6.1% | 18.4% |
| Shares Outstanding | — | $2.0B | $2.1B | $2.3B | $2.5B | $2.7B | $2.8B | $2.8B | $2.8B | $2.8B | $2.7B |
Peer Comparison
Compare NWG with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 NWGYou | $31B | 4.2 | 1.0 | 3.9 | 56.3% | 26.1% | 14.2% | 5.3% | 8.1 |
 HSBC | $306B | 14.7 | 16.1 | 12.2 | 54.6% | 20.3% | 11.8% | 4.0% | 15.5 |
 BCS | $80B | 10.5 | 4.7 | — | 108.6% | 37.3% | 9.5% | 2.7% | 21.0 |
 LYG | $77B | 14.4 | 14.3 | — | 29.9% | 10.2% | 9.9% | 3.6% | 14.3 |
 DB | $60B | 8.7 | 13.8 | — | 49.9% | 16.0% | 8.7% | 2.6% | 26.2 |
 ING | $86B | 12.0 | 20.7 | — | 94.3% | 39.7% | 12.4% | 3.1% | 18.5 |
 UBS | $138B | 23.7 | 29.8 | — | 63.6% | 11.9% | 7.0% | 1.2% | 37.3 |
 JPM | $826B | 15.5 | 13.3 | — | 58.6% | 27.7% | 17.4% | 5.4% | 9.0 |
 BAC | $401B | 13.8 | 14.6 | 31.8 | 55.4% | 18.5% | 10.2% | 3.2% | 10.0 |
 WFC | $245B | 14.7 | 10.5 | 80.7 | 62.2% | 18.6% | 10.7% | 3.7% | 9.1 |
 C | $226B | 21.7 | 25.3 | — | 41.7% | 10.0% | 6.1% | 1.6% | 27.7 |
| Financial Services Median | — | 13.1 | 11.5 | 10.6 | 63.6% | 21.6% | 9.4% | 5.7% | 4.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Full NWG Stock Analysis
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Start ComparisonNWG — Frequently Asked Questions
Quick answers to the most common questions about buying NWG stock.
What is NatWest Group plc's P/E ratio?
NatWest Group plc's current P/E ratio is 4.2x. The historical average is 8.9x. This places it at the 11th percentile of its historical range.
What is NatWest Group plc's EV/EBITDA?
NatWest Group plc's current EV/EBITDA is 1.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 26.8x.
What is NatWest Group plc's ROE?
NatWest Group plc's return on equity (ROE) is 14.2%. The historical average is 5.9%.
Is NWG stock overvalued?
Based on historical data, NatWest Group plc is trading at a P/E of 4.2x. This is at the 11th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is NatWest Group plc's dividend yield?
NatWest Group plc's current dividend yield is 10.32% with a payout ratio of 40.7%.
What are NatWest Group plc's profit margins?
NatWest Group plc has 56.3% gross margin and 26.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does NatWest Group plc have?
NatWest Group plc's Debt/EBITDA ratio is 8.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.