Latest Ratios: P/E Ratio 20.8x · EV/EBITDA -3.5x · 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 | $33.6B | $25.8B | $20.7B | $17.5B | $18.5B | $25.0B | $19.5B | $22.9B | $18.8B | $22.9B | $20.4B |
| Enterprise Value | $-11134277871 | $-18941584620 | $-8712125000 | $-6306349680 | $-13296259170 | $-36171790610 | $-35197094880 | $-8530649760 | $-6095548080 | $-15273461940 | $-7508003450 |
| P/E Ratio → | 20.75 | 15.63 | 10.49 | 16.61 | 14.41 | 16.75 | 17.06 | 16.02 | 12.59 | 20.30 | 20.61 |
| P/S Ratio | 2.35 | 1.80 | 1.30 | 1.45 | 2.38 | 3.85 | 3.09 | 3.32 | 2.82 | 4.01 | 4.06 |
| P/B Ratio | 2.64 | 1.99 | 1.62 | 1.47 | 1.64 | 2.08 | 1.67 | 2.07 | 1.79 | 2.25 | 2.09 |
| P/FCF | 6.15 | 4.72 | — | 8.98 | 11.07 | 29.71 | 14.57 | 11.50 | 14.88 | 18.39 | 19.69 |
| P/OCF | 6.07 | 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 | — | -1.32 | -0.55 | -0.52 | -1.72 | -5.57 | -5.59 | -1.24 | -0.92 | -2.67 | -1.50 |
| EV / EBITDA | -3.46 | -5.89 | -2.58 | -3.00 | -5.73 | -14.32 | -16.54 | -3.55 | -2.52 | -7.43 | -3.97 |
| EV / EBIT | -4.78 | -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 | 1.7% | 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 | 4.8% | 6.4% | 9.5% | 6.0% | 6.9% | 6.0% | 5.9% | 6.2% | 7.9% | 4.9% | 4.9% |
| FCF Yield | 16.3% | 21.2% | — | 11.1% | 9.0% | 3.4% | 6.9% | 8.7% | 6.7% | 5.4% | 5.1% |
| Buyback Yield | 3.8% | 4.9% | 4.5% | 2.0% | 0.2% | 1.1% | 1.5% | 4.8% | 4.9% | 2.3% | 2.0% |
| Total Shareholder Yield | 5.5% | 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 |
Market-sensitive fee volatility
Based on current market data, Northern Trust's forward P/E of 16.02 and PEG ratio of 2.02 suggest that investors are pricing in a cautious growth trajectory, particularly when compared to the broader financial services sector and the firm's own historical valuation multiples.
The current valuation appears to discount the potential for rapid earnings expansion, likely reflecting market concerns regarding the -9.93% revenue decline. Investors should monitor whether the forward P/E compression indicates a structural re-rating or merely a temporary reaction to interest rate sensitivity.
As reported in financial statements, Northern Trust's ROIC has struggled to gain momentum, hovering at a modest 1.8% in 2026Q1, which suggests that the firm is currently failing to generate returns that meaningfully exceed its cost of capital in the current environment.
The persistent low ROIC, which has remained below 2% for most of the last ten quarters, indicates that the firm's heavy investment in technological infrastructure is not yet yielding commensurate returns. This trend warrants further investigation into whether the firm's capital allocation strategy is effectively driving long-term value creation.
According to recent quarterly filings, Northern Trust's current ratio of 4.26 in 2026Q1 appears robust on the surface, yet this figure is heavily influenced by the firm's unique role as a custodian, which necessitates holding significant liquid assets that are not indicative of operational health.
While the high current ratio suggests a strong buffer against short-term obligations, it may obscure the underlying volatility in cash flows inherent in the custody business. Analysts should look past the headline liquidity ratios to assess how the firm manages its deposit base during periods of market stress.
Based on industry standards, the most commonly misapplied metric for Northern Trust is the traditional Price-to-Book ratio, which fails to capture the value of the firm's intangible assets and the sticky, fee-generating nature of its Global Family Office client relationships.
Using P/B as a primary valuation tool for NTRS ignores the fact that the firm's competitive advantage is rooted in proprietary data and service integration rather than physical capital. Investors should instead focus on fee-based operating leverage and client retention metrics to better understand the firm's true earning power.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying NTRS stock.
Northern Trust Corporation's current P/E ratio is 20.8x. The historical average is 20.1x. This places it at the 73th percentile of its historical range.
Northern Trust Corporation's current EV/EBITDA is -3.5x. 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 20.8x. This is at the 73th 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 1.73% 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.