Latest Ratios: P/E Ratio 22.1x · EV/EBITDA 38.0x · ROE 10.1%. (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 | $124.8B | $89.8B | $66.4B | $53.7B | $61.3B | $70.4B | $38.2B | $47.4B | $48.2B | $49.9B | $42.5B |
| Enterprise Value | $367.5B | $434.7B | $370.9B | $326.5B | $294.7B | $256.2B | $247.4B | $272.4B | $228.2B | $235.6B | $203.3B |
| P/E Ratio → | 22.14 | 10.85 | 9.58 | 13.12 | 4.61 | 9.37 | 7.88 | 8.54 | 9.15 | 9.67 | 9.19 |
| P/S Ratio | 2.27 | 1.15 | 0.85 | 0.79 | 1.64 | 2.17 | 1.11 | 1.23 | 1.49 | 1.79 | 1.67 |
| P/B Ratio | 2.08 | 1.02 | 0.79 | 0.71 | 0.86 | 1.22 | 0.67 | 0.93 | 1.05 | 1.13 | 1.00 |
| P/FCF | 20.85 | 10.55 | 2.42 | 6.78 | 17.47 | 1.63 | 0.77 | 1.68 | 2.83 | 23.59 | — |
| P/OCF | 17.33 | 8.77 | 2.29 | 5.60 | 12.37 | 1.60 | 0.75 | 1.62 | 2.69 | 17.18 | — |
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 | — | 5.56 | 4.72 | 4.80 | 7.91 | 7.89 | 7.20 | 7.06 | 7.06 | 8.46 | 7.99 |
| EV / EBITDA | 38.04 | 31.66 | 31.85 | 40.61 | 15.22 | 21.67 | 31.06 | 32.13 | 26.72 | 30.46 | 29.99 |
| EV / EBIT | 45.22 | 37.64 | 38.90 | 54.90 | 16.48 | 24.97 | 38.98 | 37.46 | 30.78 | 35.52 | 35.47 |
| EV / FCF | — | 51.07 | 13.50 | 41.25 | 83.98 | 5.95 | 4.97 | 9.67 | 13.41 | 111.27 | — |
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 | 41.6% | 41.6% | 36.0% | 43.6% | 69.6% | 82.8% | 64.2% | 63.4% | 68.3% | 75.3% | 79.2% |
| Operating Margin | 14.8% | 14.8% | 12.1% | 8.7% | 48.0% | 31.6% | 18.5% | 18.8% | 22.9% | 23.8% | 22.5% |
| Net Profit Margin | 11.1% | 11.1% | 9.3% | 6.5% | 36.3% | 23.9% | 14.8% | 14.9% | 16.9% | 19.2% | 18.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.1% | 10.1% | 9.1% | 6.0% | 21.1% | 13.6% | 9.5% | 11.9% | 12.1% | 12.3% | 11.2% |
| ROA | 0.6% | 0.6% | 0.5% | 0.4% | 1.3% | 0.8% | 0.6% | 0.7% | 0.7% | 0.8% | 0.7% |
| ROIC | 1.8% | 1.8% | 1.6% | 1.1% | 3.6% | 2.3% | 1.4% | 1.8% | 2.0% | 2.0% | 2.0% |
| ROCE | 3.4% | 3.4% | 2.9% | 1.9% | 6.8% | 4.4% | 2.6% | 3.2% | 3.6% | 3.2% | 4.5% |
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 | 4.71 | 4.71 | 4.43 | 4.66 | 4.60 | 5.00 | 4.87 | 5.52 | 5.04 | 5.07 | 4.65 |
| Debt / EBITDA | 30.24 | 30.24 | 32.05 | 44.14 | 16.86 | 24.31 | 34.61 | 33.24 | 26.99 | 29.05 | 29.05 |
| Net Debt / Equity | — | 3.91 | 3.61 | 3.58 | 3.29 | 3.23 | 3.70 | 4.41 | 3.94 | 4.18 | 3.80 |
| Net Debt / EBITDA | 25.12 | 25.12 | 26.15 | 33.93 | 12.05 | 15.72 | 26.27 | 26.54 | 21.08 | 24.00 | 23.73 |
| Debt / FCF | — | 40.52 | 11.09 | 34.47 | 66.52 | 4.31 | 4.20 | 7.99 | 10.57 | 87.67 | — |
| Interest Coverage | 0.27 | 0.27 | 0.20 | 0.16 | 1.62 | 1.84 | 0.68 | 0.55 | 0.77 | 1.08 | 1.27 |
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 | 0.14 | 0.14 | 0.14 | 0.20 | 0.17 | 0.23 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 |
| Quick Ratio | 0.14 | 0.14 | 0.14 | 0.20 | 0.17 | 0.23 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 |
| Cash Ratio | 0.06 | 0.06 | 0.06 | 0.08 | 0.11 | 0.13 | 0.09 | 0.09 | 0.09 | 0.08 | 0.07 |
| Asset Turnover | — | 0.05 | 0.06 | 0.05 | 0.03 | 0.03 | 0.04 | 0.05 | 0.04 | 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 | 2.7% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 57.8% | 57.8% | 52.5% | 61.1% | 19.2% | 38.4% | 48.6% | 47.8% | 47.4% | 37.7% | 48.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.5% | 9.2% | 10.4% | 7.6% | 21.7% | 10.7% | 12.7% | 11.7% | 10.9% | 10.3% | 10.9% |
| FCF Yield | 4.8% | 9.5% | 41.4% | 14.7% | 5.7% | 61.2% | 130.4% | 59.5% | 35.3% | 4.2% | — |
| Buyback Yield | 1.9% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 4.7% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $723M | $729M | $711M | $666M | $649M | $642M | $640M | $645M | $652M | $668M |
U.S. commercial credit deterioration
Based on reported financial data, BMO trades at a P/B of 2.04, which appears to discount the bank relative to its historical averages and suggests that investors remain cautious regarding the long-term accretion of the Bank of the West acquisition within the current interest rate environment.
The current valuation multiple implies that the market is pricing BMO as a commodity balance sheet rather than a premium franchise, likely due to the ongoing drag of integration costs on bottom-line returns. Investors should monitor whether the forward P/E of 12.66 adequately compensates for the potential volatility in credit provisions within the U.S. commercial portfolio.
According to quarterly financial statements, BMO's ROE has remained constrained in the low single digits, specifically 3.1% in 2026Q2, indicating that the bank's profitability is currently pressured by elevated operating expenses and the cyclical nature of its specialized commercial lending niches across North America.
The decomposition of profitability suggests that while non-interest income contribution has risen to 22.1%, the overall ROE is hampered by a lack of significant asset utilization improvement. The bank's reliance on interest-sensitive commercial lending may continue to weigh on returns until the efficiency ratio stabilizes following the recent large-scale U.S. expansion.
As reported in recent filings, BMO's efficiency ratio has fluctuated significantly between 19.2% and 29.6% over the last ten quarters, reflecting the operational friction inherent in integrating the Bank of the West while simultaneously managing a high fixed-cost base across its North American branch network.
The NIM compression to 0.4% suggests that funding costs are effectively neutralizing the yield benefits from the bank's commercial loan book. This trend warrants further investigation into whether the bank can achieve meaningful operating leverage or if the current cost structure is a permanent feature of its post-acquisition footprint.
Based on the provided financial data, BMO maintains a stable equity-to-assets ratio of 0.06, which aligns with the stringent capital requirements imposed by OSFI and suggests that the bank is prioritizing regulatory compliance over aggressive capital return strategies in the current macroeconomic climate.
The stability of the capital ratio indicates that BMO is operating within a conservative framework, likely to mitigate risks associated with its U.S. commercial real estate and transportation exposures. Investors should monitor whether these buffers remain sufficient to absorb potential credit losses without necessitating a reduction in dividend growth or share repurchases.
The P/E ratio is frequently misapplied to BMO, as it fails to account for the significant volatility introduced by IFRS 9 expected credit loss provisioning, which can artificially depress earnings in periods of macroeconomic uncertainty and obscure the underlying cash-generating capacity of the bank's core commercial operations.
Investors should instead prioritize P/TBV and ROTCE, as these metrics provide a clearer view of the bank's capital efficiency and franchise value, stripping away the noise of accounting-based provision adjustments. Relying on P/E in a cycle of rising provisions may lead to an inaccurate assessment of the bank's true valuation and long-term earnings power.
Includes 30+ ratios · 30 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying BMO stock.
Bank of Montreal's current P/E ratio is 22.1x. The historical average is 10.0x. This places it at the 100th percentile of its historical range.
Bank of Montreal's current EV/EBITDA is 38.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.8x.
Bank of Montreal's return on equity (ROE) is 10.1%. The historical average is 13.0%.
Based on historical data, Bank of Montreal is trading at a P/E of 22.1x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Bank of Montreal's current dividend yield is 2.75% with a payout ratio of 57.8%.
Bank of Montreal has 41.6% gross margin and 14.8% operating margin. Operating margin between 10-20% is typical for established companies.
Bank of Montreal's Debt/EBITDA ratio is 30.2x, indicating high leverage. A ratio above 4x may signal elevated financial risk.