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MFCManulife Financial Corporation
$41.40$69.4B
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  4. Financial Ratios

Manulife Financial Corporation (MFC) Financial Ratios

Latest Ratios: P/E Ratio 19.2x · EV/EBITDA 18.7x · ROE 11.0%. (1998–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

MFC Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$69.4B$62.0B$54.8B$40.6B$34.1B$37.1B$34.6B$39.8B$28.2B$41.4B$35.2B
Enterprise Value$69.3B$61.7B$43.2B$33.0B$27.3B$26.4B$22.5B$31.2B$25.5B$38.6B$33.0B
P/E Ratio →19.1711.8210.818.47—5.396.087.326.0421.2912.64
P/S Ratio1.861.17——1.410.620.450.510.760.730.68
P/B Ratio1.911.181.040.830.700.630.650.790.600.980.82
P/FCF3.081.932.071.992.050.781.730.391.472.332.07
P/OCF3.081.932.071.992.051.601.731.941.472.332.07

P/E links to full P/E history page with 30-year chart

MFC EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—1.16——1.130.440.290.400.680.680.64
EV / EBITDA18.6911.727.746.56—3.053.024.554.0712.628.19
EV / EBIT13.877.164.924.12—2.892.824.133.7510.617.59
EV / FCF—1.921.631.621.640.561.120.311.332.171.93

MFC Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin25.5%25.5%-187.0%-151.8%6.8%31.1%22.4%21.9%45.5%21.7%24.9%
Operating Margin13.4%13.4%-97.3%-91.7%-13.0%13.6%8.8%8.0%14.8%4.4%6.4%
Net Profit Margin10.9%10.9%-77.3%-77.6%-8.7%11.1%6.9%6.8%12.5%3.7%5.8%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE11.0%11.0%11.1%11.2%-3.9%11.9%10.3%10.8%10.5%4.9%7.1%
ROA0.6%0.6%0.6%0.6%-0.2%0.7%0.6%0.7%0.6%0.3%0.4%
ROIC11.4%11.4%12.9%11.7%-5.2%13.7%12.3%10.9%9.9%4.7%6.7%
ROCE0.7%0.7%0.8%0.8%-0.5%0.9%0.8%0.8%0.8%0.3%0.5%

MFC Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.280.280.270.260.250.200.260.230.290.310.30
Debt / EBITDA2.792.792.542.53—1.371.881.702.154.303.20
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-0.04-0.04-2.08-1.51—-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 Coverage5.645.645.225.15-2.008.976.725.565.353.154.25

Net cash position: cash ($14.9B) exceeds total debt ($14.7B)

MFC Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio————0.061.351.681.971.171.741.57
Quick Ratio————0.061.351.681.971.171.741.57
Cash Ratio————0.051.271.591.841.081.631.49
Asset Turnover—0.05-0.01-0.010.030.070.090.100.050.080.07
Inventory Turnover———————————
Days Sales Outstanding———————————

MFC Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield3.3%5.3%5.8%7.3%8.2%6.7%6.8%3.5%6.3%4.3%4.5%
Payout Ratio57.1%57.1%56.1%54.4%—37.6%43.9%26.5%38.3%86.1%53.3%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield5.2%8.5%9.2%11.8%—18.6%16.4%13.7%16.6%4.7%7.9%
FCF Yield32.5%51.8%48.3%50.3%48.7%127.7%57.9%254.1%68.0%42.9%48.4%
Buyback Yield2.5%3.9%6.0%3.9%5.5%1.6%0.7%3.4%1.7%0.0%0.0%
Total Shareholder Yield5.7%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

Key Metrics

Growth RegimeMixed
ProfitabilityModerate
Balance SheetHealthy
Cash FlowStable
Top Statement Risk

Legacy block reserve volatility

Valuation Reflects Persistent Complexity Discount

Based on reported figures, Manulife's P/B ratio of 1.86 suggests the market continues to apply a complexity discount relative to peers like Sun Life, likely reflecting ongoing investor skepticism regarding the long-term earnings volatility inherent in its legacy North American insurance and annuity blocks.

The current valuation multiple appears to trade at a discount to the broader peer group, which may indicate that the market is not yet fully pricing in the potential benefits of the company's strategic pivot toward fee-based wealth management. Investors should monitor whether the successful de-risking of the LTC portfolio leads to a valuation re-rating as the earnings profile becomes more predictable.

Underwriting Profitability Remains Highly Variable

As reported in recent financial statements, the combined ratio has exhibited significant quarterly variance, ranging from a low of 49.9% in 2024Q4 to 96.4% in 2024Q1, which suggests that underwriting profitability remains sensitive to periodic claims volatility and the ongoing restructuring of legacy insurance portfolios.

The erratic trajectory of the combined ratio highlights the difficulty in achieving consistent underwriting margins while managing a large, legacy-heavy book of business. The recent tightening of the ratio suggests that management's de-risking efforts may be gaining traction, though the historical volatility warrants further investigation into the sustainability of these underwriting gains.

Capital Adequacy Supports Underwriting Leverage

According to recent financial data, Manulife has maintained a stable equity base near $50 billion, which provides a solid foundation for its underwriting leverage despite the significant fluctuations observed in its underlying liability and claims payment profiles over the last ten quarters.

The company's ability to maintain a consistent capital buffer suggests that its underwriting leverage remains within manageable limits, even as it navigates the complexities of the IFRS 17 accounting transition. Analysts should continue to monitor the premium-to-surplus relationship as a key indicator of whether the company is overextending its capital base in pursuit of growth in emerging markets.

Misapplication of P/E Multiple Metrics

As indicated by the provided data, the P/E ratio is frequently misapplied to Manulife, as it fails to account for the non-cash accounting flows and significant earnings volatility introduced by the IFRS 17 transition and the ongoing management of legacy insurance liabilities.

Investors should prioritize the Contractual Service Margin (CSM) and core earnings over traditional P/E multiples, as the latter can be severely distorted by actuarial adjustments and market-driven fluctuations in the general account. Relying on P/E ratios obscures the underlying operational health of the business and may lead to incorrect conclusions regarding the company's true earnings power.

Download Financial Ratios Data

Includes 30+ ratios · 28 years · Updated daily

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MFC — Frequently Asked Questions

Quick answers to the most common questions about buying MFC stock.

What is Manulife Financial Corporation's P/E ratio?

Manulife Financial Corporation's current P/E ratio is 19.2x. The historical average is 13.5x. This places it at the 88th percentile of its historical range.

What is Manulife Financial Corporation's EV/EBITDA?

Manulife Financial Corporation's current EV/EBITDA is 18.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.3x.

What is Manulife Financial Corporation's ROE?

Manulife Financial Corporation's return on equity (ROE) is 11.0%. The historical average is 9.4%.

Is MFC stock overvalued?

Based on historical data, Manulife Financial Corporation is trading at a P/E of 19.2x. This is at the 88th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is Manulife Financial Corporation's dividend yield?

Manulife Financial Corporation's current dividend yield is 3.29% with a payout ratio of 57.1%.

What are Manulife Financial Corporation's profit margins?

Manulife Financial Corporation has 25.5% gross margin and 13.4% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does Manulife Financial Corporation have?

Manulife Financial Corporation's Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.