Latest Ratios: P/E Ratio 5.0x · EV/EBITDA 1.5x · ROE 14.2%. (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 | $35.8B | $35.6B | $21.7B | $13.0B | $16.0B | $17.8B | $13.7B | $19.5B | $16.9B | $22.8B | $16.2B |
| Enterprise Value | $17.7B | $22.0B | $-5479070000 | $-31467257500 | $-73709665000 | $-101682229680 | $-54433169840 | $-4669812580 | $-22132752500 | $-32251844833 | $-11338721140 |
| P/E Ratio → | 4.99 | 6.48 | 4.80 | 2.87 | 4.75 | 6.09 | — | 6.20 | 10.75 | 30.48 | — |
| P/S Ratio | 0.91 | 1.21 | 0.76 | 0.52 | 0.99 | 1.48 | 1.05 | 1.30 | 1.07 | 1.54 | 1.09 |
| P/B Ratio | 0.64 | 0.83 | 0.55 | 0.35 | 0.44 | 0.43 | 0.31 | 0.45 | 0.36 | 0.46 | 0.33 |
| P/FCF | 4.63 | 6.14 | 31.20 | — | — | 0.34 | 0.48 | — | — | 0.61 | — |
| P/OCF | 3.79 | 5.03 | 12.22 | — | — | 0.33 | 0.47 | — | — | 0.59 | — |
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 | — | 0.75 | -0.19 | -1.27 | -4.56 | -8.45 | -4.16 | -0.31 | -1.41 | -2.18 | -0.76 |
| EV / EBITDA | 1.50 | 2.49 | -0.76 | -4.42 | -12.36 | -21.33 | -150.78 | -0.90 | -5.36 | -10.48 | — |
| EV / EBIT | 1.72 | 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 | — |
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 | 56.3% | 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% |
| 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% |
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 | 1.69 | 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)
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 | 0.20 | 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 | — | — | — | — | — | — | — | — | — | — | — |
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 | 8.7% | 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% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 20.0% | 15.4% | 20.8% | 34.8% | 21.1% | 16.4% | — | 16.1% | 9.3% | 3.3% | — |
| FCF Yield | 21.6% | 16.3% | 3.2% | — | — | 296.4% | 210.0% | — | — | 164.9% | — |
| Buyback Yield | 9.5% | 7.2% | 12.5% | 18.6% | 12.8% | 10.1% | 0.0% | 0.1% | 16.8% | 3.4% | 8.0% |
| Total Shareholder Yield | 18.2% | 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 |
UK domestic economic concentration
Based on reported figures, NWG trades at a P/B of 0.62, which suggests the market is pricing the bank at a significant discount to its tangible book value, likely reflecting investor caution regarding the bank's concentrated exposure to the UK domestic economy and historical governance concerns.
The current valuation multiple appears to imply a low expectation for long-term return on tangible equity, potentially failing to account for the potential re-rating as the UK government reduces its remaining stake. Investors should monitor whether this discount narrows as the bank demonstrates sustained capital return capacity and improved operational stability.
According to recent quarterly data, NWG's ROE has remained in a narrow range between 2.6% and 4.0%, indicating that profitability is currently constrained by a combination of low asset utilization and the structural costs associated with maintaining a legacy physical branch network in the UK.
The DuPont decomposition suggests that profitability is heavily reliant on the bank's ability to manage its net interest margin, which has been pressured by deposit migration. Without a meaningful expansion in non-interest income contribution, the bank may struggle to achieve a return on equity that significantly exceeds its cost of capital.
As reported in financial statements, the bank maintained an efficiency ratio of 31.8% in 2025Q4, which suggests that management has been effective in controlling operating expenses despite the significant investments required for digital transformation and the ongoing maintenance of its extensive legacy IT infrastructure.
While the efficiency ratio appears strong, it may be masking underlying margin compression resulting from the competitive environment for retail deposits. The bank's reliance on the structural hedge to stabilize NII warrants further investigation, as this mechanism may provide only a temporary buffer against declining interest rate environments.
Investors frequently misapply the P/E ratio to NWG, which obscures the bank's true earnings power by failing to account for the volatility inherent in IFRS 9 credit impairment provisions and the accounting noise generated by the structural hedge, making P/TBV a more reliable valuation metric.
The P/E ratio is particularly problematic for NWG because it does not reflect the capital adequacy constraints that dictate the bank's ability to distribute earnings to shareholders. Analysts should prioritize P/TBV and ROTCE to better assess the bank's franchise value and its capacity for sustainable capital returns.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying NWG stock.
NatWest Group plc's current P/E ratio is 5.0x. The historical average is 8.9x. This places it at the 33th percentile of its historical range.
NatWest Group plc's current EV/EBITDA is 1.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 26.8x.
NatWest Group plc's return on equity (ROE) is 14.2%. The historical average is 5.9%.
Based on historical data, NatWest Group plc is trading at a P/E of 5.0x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
NatWest Group plc's current dividend yield is 8.68% with a payout ratio of 40.7%.
NatWest Group plc has 56.3% gross margin and 26.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
NatWest Group plc's Debt/EBITDA ratio is 8.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.