Latest Ratios: P/E Ratio 9.8x · EV/EBITDA 7.7x · ROE 16.0%. (2017–2025 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.4B | $1.4B | $1.4B | $2.0B | $1.4B | $1.5B | $2.4B | $2.1B | — | — |
| Enterprise Value | $1.8B | $3.4B | $3.7B | $4.1B | $3.0B | $2.9B | $2.5B | $1.5B | — | — |
| P/E Ratio → | 9.75 | 1.90 | 2.29 | 5.14 | 3.76 | 6.63 | 8.11 | 13.43 | — | — |
| P/S Ratio | 1.97 | 0.39 | 0.44 | 0.69 | 0.60 | 0.86 | 1.97 | 2.75 | — | — |
| P/B Ratio | 1.48 | 0.29 | 0.34 | 0.55 | 0.43 | 0.49 | 0.84 | 0.98 | — | — |
| P/FCF | 6.89 | 1.36 | 1.39 | 2.49 | 2.57 | 4.18 | 10.13 | 11.64 | — | — |
| P/OCF | 5.95 | 1.17 | 1.01 | 1.90 | 1.66 | 2.34 | 6.38 | 6.91 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.94 | 1.12 | 1.43 | 1.30 | 1.68 | 2.05 | 1.96 | — | — |
| EV / EBITDA | 7.68 | 2.86 | 3.05 | 3.89 | 3.45 | 4.86 | 5.21 | 5.27 | — | — |
| EV / EBIT | 7.68 | 2.86 | 3.66 | 5.03 | 4.22 | 6.44 | 6.79 | 6.06 | — | — |
| EV / FCF | — | 3.28 | 3.57 | 5.15 | 5.53 | 8.17 | 10.54 | 8.27 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 64.5% | 64.5% | 63.2% | 61.4% | 63.1% | 62.1% | 63.8% | 58.9% | 49.7% | 42.6% |
| Operating Margin | 32.8% | 32.8% | 30.6% | 26.7% | 28.5% | 25.6% | 30.2% | 27.3% | 28.9% | 22.8% |
| Net Profit Margin | 20.4% | 20.4% | 19.1% | 13.4% | 16.0% | 13.0% | 24.3% | 20.5% | 25.9% | 21.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.0% | 16.0% | 15.9% | 11.2% | 12.0% | 7.7% | 11.8% | 11.4% | 27.1% | 97.1% |
| ROA | 8.1% | 8.1% | 7.7% | 5.2% | 5.5% | 4.0% | 7.6% | 8.0% | 16.9% | 43.8% |
| ROIC | 13.3% | 13.3% | 12.3% | 10.8% | 10.7% | 9.0% | 12.3% | 14.5% | 22.9% | 147.5% |
| ROCE | 14.7% | 14.7% | 14.2% | 12.0% | 11.1% | 8.9% | 10.7% | 12.4% | 24.5% | 95.5% |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.64 | 0.64 | 0.74 | 0.73 | 0.84 | 0.72 | 0.40 | 0.16 | 0.13 | 0.08 |
| Debt / EBITDA | 2.62 | 2.62 | 2.61 | 2.53 | 3.10 | 3.63 | 2.41 | 1.24 | 0.73 | 0.07 |
| Net Debt / Equity | — | 0.41 | 0.52 | 0.58 | 0.50 | 0.47 | 0.03 | -0.28 | 0.03 | -0.46 |
| Net Debt / EBITDA | 1.68 | 1.68 | 1.86 | 2.01 | 1.85 | 2.37 | 0.20 | -2.15 | 0.15 | -0.40 |
| Debt / FCF | — | 1.92 | 2.18 | 2.66 | 2.97 | 3.99 | 0.41 | -3.37 | 0.27 | -1.15 |
| Interest Coverage | 2.41 | 2.41 | 2.77 | 2.11 | 2.48 | 2.56 | 22.33 | 15.21 | 40.12 | 47.35 |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.20 | 2.20 | 1.39 | 1.14 | 1.81 | 1.57 | 2.38 | 3.34 | 0.73 | 1.16 |
| Quick Ratio | 2.20 | 2.20 | 1.39 | 1.14 | 1.79 | 1.56 | 2.37 | 3.32 | 0.73 | 1.16 |
| Cash Ratio | 1.27 | 1.27 | 0.80 | 0.52 | 1.21 | 0.98 | 1.77 | 2.83 | 0.34 | 0.49 |
| Asset Turnover | — | 0.39 | 0.37 | 0.38 | 0.32 | 0.27 | 0.25 | 0.26 | 0.36 | 2.08 |
| Inventory Turnover | — | — | — | 803.05 | 70.51 | 55.15 | 57.88 | 78.55 | 150.72 | 276.93 |
| Days Sales Outstanding | — | 75.87 | 68.67 | 69.35 | 75.32 | 85.75 | 91.86 | 61.00 | 63.88 | 52.60 |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | 1.8% | — | — |
| Payout Ratio | — | — | — | — | — | — | — | 24.7% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.3% | 52.6% | 43.6% | 19.5% | 26.6% | 15.1% | 12.3% | 7.4% | — | — |
| FCF Yield | 14.5% | 73.7% | 71.8% | 40.2% | 38.9% | 23.9% | 9.9% | 8.6% | — | — |
| Buyback Yield | 1.1% | 5.4% | 0.0% | 0.6% | 10.8% | 14.5% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 1.1% | 5.4% | 0.0% | 0.6% | 10.8% | 14.5% | 0.0% | 1.8% | — | — |
| Shares Outstanding | — | $91M | $91M | $91M | $90M | $94M | $94M | $76M | $88M | $88M |
Regulatory seat expansion risk
According to current market data, Afya trades at a forward P/E of 1.66 and a PEG ratio of 0.45, suggesting that investors are heavily discounting future growth potential compared to historical averages and broader sector peers, likely due to concerns regarding regulatory impacts on long-term medical seat scarcity.
The significant divergence between the TTM P/E of 9.49 and the forward multiple indicates that the market anticipates a sharp contraction in earnings growth or a re-rating of the business model. This valuation profile appears to price in a high probability of regulatory disruption, potentially ignoring the defensive, recurring nature of the undergraduate medical tuition revenue stream.
Based on reported financial statements, Afya's ROIC has remained modest, fluctuating between 2.3% and 4.3% over the last ten quarters, which suggests that the company's aggressive acquisition strategy has significantly inflated the capital base with intangible assets, thereby diluting the returns generated on invested capital.
The persistent gap between gross margins and ROIC highlights the heavy burden of amortization and the capital-intensive nature of integrating acquired medical schools. Investors should monitor whether management can improve these returns as the acquired campuses reach full maturation and the digital health segment scales without further heavy capital deployment.
As indicated by quarterly filings, Afya's DSO has hovered between 62 and 73 days, reflecting the inherent complexity of managing tuition collections and government-backed receivables, which creates periodic liquidity pressure despite the company's strong underlying profitability and high-margin undergraduate business model.
The variability in the cash conversion cycle, particularly the fluctuations in DPO, suggests that the company may be utilizing supplier leverage to manage short-term cash needs. This reliance on working capital management warrants further investigation to determine if it is a structural necessity or a temporary response to macro-economic volatility.
According to recent balance sheet data, Afya maintains a debt-to-EBITDA ratio that has fluctuated between 6.64 and 11.26, indicating that while the company is utilizing debt to fund its growth, the interest coverage ratio of 2.91 in 2026Q1 suggests a manageable, albeit tightening, debt service capacity.
The leverage profile appears consistent with an M&A-heavy growth strategy, but the volatility in interest coverage suggests that the company's ability to service debt is sensitive to operational performance and potential regulatory shocks. Investors should monitor whether the current debt load limits future strategic flexibility in a higher-interest-rate environment.
As reported in market analysis, the most commonly misapplied metric for Afya is the standalone SaaS valuation multiple for its digital health segment, which obscures the fact that these tools function primarily as low-cost customer acquisition funnels for the high-margin undergraduate and postgraduate medical education business.
Applying a pure-play tech multiple to the digital segment ignores the synergistic value it provides to the core education business, potentially leading to an undervaluation of the total ecosystem. A more appropriate approach would be to evaluate the digital segment's contribution to the overall customer lifetime value and margin expansion within the education segments.
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Quick answers to the most common questions about buying AFYA stock.
Afya Limited's current P/E ratio is 9.8x. The historical average is 5.9x. This places it at the 86th percentile of its historical range.
Afya Limited's current EV/EBITDA is 7.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.1x.
Afya Limited's return on equity (ROE) is 16.0%. The historical average is 23.3%.
Based on historical data, Afya Limited is trading at a P/E of 9.8x. This is at the 86th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Afya Limited has 64.5% gross margin and 32.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Afya Limited's Debt/EBITDA ratio is 2.6x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.