Latest Ratios: P/E Ratio 17.1x · EV/EBITDA 9.7x · ROE 9.1%. (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 | $2.6B | $2.7B | $3.4B | $2.6B | $3.0B | $3.0B | $2.3B | $2.4B | $2.0B | $2.4B | $2.2B |
| Enterprise Value | $4.2B | $4.3B | $4.8B | $4.0B | $4.3B | $4.0B | $2.8B | $3.2B | $2.9B | $3.6B | $2.4B |
| P/E Ratio → | 17.14 | 16.60 | 41.45 | 10.38 | 13.05 | 23.66 | 11573.33 | 19.09 | 21.21 | 31.32 | 35.85 |
| P/S Ratio | 0.30 | 0.31 | 0.40 | 0.32 | 0.38 | 0.48 | 0.39 | 0.38 | 0.32 | 0.45 | 0.43 |
| P/B Ratio | 1.56 | 1.51 | 1.89 | 1.45 | 1.75 | 1.86 | 1.56 | 1.58 | 1.40 | 1.78 | 2.28 |
| P/FCF | 16.77 | 17.38 | 20.17 | 13.68 | — | 10.69 | 5.57 | 12.01 | 7.56 | — | 56.29 |
| P/OCF | 11.10 | 11.50 | 14.89 | 10.72 | 147.28 | 9.52 | 5.11 | 9.29 | 6.36 | 436.94 | 26.63 |
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 | — | 0.49 | 0.57 | 0.49 | 0.56 | 0.64 | 0.47 | 0.49 | 0.46 | 0.65 | 0.47 |
| EV / EBITDA | 9.73 | 9.95 | 14.95 | 7.51 | 9.40 | 13.38 | 14.72 | 10.08 | 11.72 | 20.71 | 21.73 |
| EV / EBIT | 12.89 | 13.54 | 15.47 | 11.71 | 12.43 | 19.22 | 10.24 | 14.48 | 15.42 | 27.74 | 21.89 |
| EV / FCF | — | 27.63 | 28.47 | 20.88 | — | 14.15 | 6.74 | 15.67 | 10.90 | — | 61.73 |
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 | 11.7% | 11.7% | 13.3% | 13.9% | 13.4% | 15.6% | 13.9% | 11.3% | 10.8% | 10.5% | 10.5% |
| Operating Margin | 3.7% | 3.7% | 2.5% | 5.1% | 4.5% | 3.3% | 1.6% | 3.2% | 2.2% | 1.9% | 1.1% |
| Net Profit Margin | 1.9% | 1.9% | 1.0% | 3.1% | 3.0% | 2.0% | 0.0% | 2.0% | 1.5% | 0.1% | 1.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 9.1% | 9.1% | 4.5% | 14.3% | 13.9% | 8.1% | 0.0% | 8.5% | 6.9% | 0.3% | 5.8% |
| ROA | 3.1% | 3.1% | 1.6% | 5.1% | 5.0% | 3.1% | 0.0% | 3.5% | 2.6% | 0.1% | 2.6% |
| ROIC | 7.5% | 7.5% | 5.0% | 9.9% | 9.3% | 6.8% | 3.4% | 6.7% | 4.3% | 4.2% | 3.6% |
| ROCE | 8.2% | 8.2% | 5.7% | 11.3% | 10.5% | 6.9% | 3.4% | 7.4% | 4.7% | 4.3% | 3.4% |
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 | 0.95 | 0.95 | 0.82 | 0.80 | 0.82 | 0.64 | 0.59 | 0.52 | 0.65 | 0.86 | 0.28 |
| Debt / EBITDA | 3.93 | 3.93 | 4.56 | 2.72 | 3.04 | 3.49 | 4.61 | 2.54 | 3.74 | 6.85 | 2.39 |
| Net Debt / Equity | — | 0.89 | 0.78 | 0.76 | 0.77 | 0.60 | 0.33 | 0.48 | 0.62 | 0.81 | 0.22 |
| Net Debt / EBITDA | 3.69 | 3.69 | 4.36 | 2.59 | 2.88 | 3.27 | 2.56 | 2.35 | 3.58 | 6.48 | 1.91 |
| Debt / FCF | — | 10.25 | 8.30 | 7.20 | — | 3.46 | 1.17 | 3.66 | 3.33 | — | 5.44 |
| Interest Coverage | 3.28 | 3.28 | 3.62 | 4.13 | 8.48 | 7.21 | 6.19 | 4.30 | 3.53 | 6.69 | 10.71 |
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 | 1.48 | 1.48 | 1.33 | 1.40 | 1.15 | 1.09 | 1.46 | 1.41 | 1.48 | 1.63 | 1.66 |
| Quick Ratio | 1.48 | 1.48 | 1.33 | 1.40 | 1.15 | 1.09 | 1.46 | 1.41 | 1.48 | 1.63 | 1.66 |
| Cash Ratio | 0.08 | 0.08 | 0.05 | 0.06 | 0.05 | 0.05 | 0.40 | 0.06 | 0.05 | 0.08 | 0.09 |
| Asset Turnover | — | 1.60 | 1.64 | 1.64 | 1.60 | 1.40 | 1.59 | 1.76 | 1.78 | 1.43 | 2.26 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 69.48 | 67.51 | 67.81 | 63.33 | 69.71 | 55.25 | 60.98 | 57.46 | 69.48 | 57.02 |
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 | 2.4% | 2.4% | 1.7% | 2.2% | 1.7% | 1.7% | 2.1% | 2.0% | 2.3% | 1.6% | 1.7% |
| Payout Ratio | 40.4% | 40.4% | 69.4% | 22.9% | 22.5% | 40.4% | 16433.3% | 37.4% | 47.0% | 1039.5% | 64.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.8% | 6.0% | 2.4% | 9.6% | 7.7% | 4.2% | 0.0% | 5.2% | 4.7% | 3.2% | 2.8% |
| FCF Yield | 6.0% | 5.8% | 5.0% | 7.3% | — | 9.4% | 18.0% | 8.3% | 13.2% | — | 1.8% |
| Buyback Yield | 4.7% | 4.5% | 1.7% | 5.3% | 3.2% | 0.3% | 0.2% | 0.1% | 0.0% | 0.3% | 2.1% |
| Total Shareholder Yield | 7.1% | 7.0% | 3.3% | 7.5% | 5.0% | 2.0% | 2.3% | 2.0% | 2.3% | 1.9% | 3.8% |
| Shares Outstanding | — | $63M | $64M | $66M | $68M | $68M | $67M | $67M | $66M | $58M | $57M |
Margin compression from labor
According to current market data, ABM trades at a forward P/E of 11.39, which appears to discount the company's growth prospects relative to higher-margin industrial peers like Cintas, suggesting that investors remain skeptical of the firm's ability to successfully pivot toward higher-value technical and energy-related service contracts.
The valuation gap between ABM and its peers is likely driven by the market's focus on the company's exposure to the challenged commercial office sector. While the low PEG ratio of 0.06 may imply an attractive entry point, this metric may be misleading if the underlying earnings growth is primarily fueled by debt-funded acquisitions rather than organic margin expansion.
Based on reported financial figures, ABM's ROIC has remained stagnant near 1.9% as of 2026Q2, indicating that the company is struggling to generate meaningful returns on its invested capital despite a consistent strategy of acquiring smaller service providers to expand its geographic and technical footprint.
The persistent low ROIC suggests that the capital deployed for acquisitions is not yet yielding the expected synergies, potentially due to the integration costs and the low-margin nature of the acquired janitorial and parking businesses. Investors should monitor whether the ELEVATE initiative can drive sufficient operational efficiency to lift these returns above the company's cost of capital.
As reported in recent quarterly filings, ABM's cash conversion cycle remains sensitive to timing, with DSO fluctuating around 62 days in 2026Q2, highlighting the inherent difficulty in managing working capital within a labor-intensive service model that relies on timely payments from large-scale commercial and municipal clients.
The variability in the cash conversion cycle suggests that ABM's liquidity is highly dependent on the efficiency of its billing and collection processes, which can be disrupted by contract renegotiations or client payment delays. This operational friction necessitates a cautious approach to assessing the company's ability to self-fund its ongoing technology investments.
According to the latest balance sheet data, ABM's debt-to-equity ratio has climbed to 1.13 in 2026Q2, indicating that the company's reliance on debt to fund its growth strategy is increasing at a time when operating margins remain under pressure from persistent wage inflation and labor shortages.
The increase in leverage, combined with an interest coverage ratio of 3.06, suggests that the company's financial flexibility is becoming more constrained. If the company fails to improve its operating margins, the rising interest expense could further erode the net income available to shareholders, potentially limiting future dividend growth or share buybacks.
As indicated by historical performance, the P/E ratio is frequently misapplied to ABM's business model because it fails to account for the significant non-cash charges and integration costs associated with the company's aggressive acquisition strategy, which often mask the underlying cash-generating capability of the core service operations.
Analysts should prioritize EV/EBITDA or free cash flow-based metrics to better understand the company's true earning power, as these measures are less susceptible to the accounting distortions inherent in the company's acquisition-heavy growth model. Relying solely on P/E may lead to an inaccurate assessment of the company's valuation relative to its actual operational performance.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ABM stock.
ABM Industries Incorporated's current P/E ratio is 17.1x. The historical average is 20.7x. This places it at the 38th percentile of its historical range.
ABM Industries Incorporated's current EV/EBITDA is 9.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.8x.
ABM Industries Incorporated's return on equity (ROE) is 9.1%. The historical average is 10.0%.
Based on historical data, ABM Industries Incorporated is trading at a P/E of 17.1x. This is at the 38th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
ABM Industries Incorporated's current dividend yield is 2.36% with a payout ratio of 40.4%.
ABM Industries Incorporated has 11.7% gross margin and 3.7% operating margin.
ABM Industries Incorporated's Debt/EBITDA ratio is 3.9x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.