Latest Ratios: P/E Ratio 46.0x · EV/EBITDA 15.7x · ROE 10.5%. (2012–2025 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 | $14.8B | $10.4B | $10.3B | $6.6B | $5.8B | $6.0B | $4.8B | $7.9B | $7.9B | $7.4B | $6.8B |
| Enterprise Value | $19.9B | $15.5B | $15.2B | $11.6B | $13.3B | $13.3B | $12.0B | $14.4B | $14.9B | $12.4B | $11.9B |
| P/E Ratio → | 46.04 | 31.97 | 39.12 | 9.75 | 30.03 | — | — | 17.67 | 13.87 | 19.68 | 23.66 |
| P/S Ratio | 0.80 | 0.56 | 0.59 | 0.41 | 0.43 | 0.50 | 0.37 | 0.49 | 0.50 | 0.51 | 0.47 |
| P/B Ratio | 4.75 | 3.30 | 3.38 | 1.77 | 1.92 | 2.21 | 1.75 | 2.38 | 2.59 | 2.99 | 3.15 |
| P/FCF | 32.50 | 22.94 | 34.47 | 21.57 | 17.69 | 21.45 | — | 15.89 | 18.33 | 14.20 | 21.28 |
| P/OCF | 16.04 | 11.32 | 14.19 | 8.58 | 8.40 | 9.20 | 27.21 | 8.06 | 7.51 | 7.00 | 8.47 |
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 | — | 0.84 | 0.87 | 0.72 | 0.97 | 1.10 | 0.93 | 0.89 | 0.94 | 0.85 | 0.83 |
| EV / EBITDA | 15.65 | 12.23 | 13.31 | 11.20 | 16.34 | 17.98 | 36.30 | 9.68 | 10.53 | 9.47 | 9.62 |
| EV / EBIT | 25.07 | 20.08 | 20.16 | 11.24 | 30.76 | 47.51 | — | 15.80 | 18.06 | 15.38 | 16.01 |
| EV / FCF | — | 34.13 | 50.83 | 38.00 | 40.30 | 47.36 | — | 28.78 | 34.71 | 23.88 | 37.22 |
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 | 5.8% | 5.8% | 8.2% | 8.1% | 7.8% | 9.0% | 6.5% | 10.4% | 11.3% | 11.0% | 10.6% |
| Operating Margin | 4.3% | 4.3% | 4.1% | 3.9% | 3.0% | 1.6% | -2.1% | 5.5% | 5.2% | 5.5% | 5.2% |
| Net Profit Margin | 1.8% | 1.8% | 1.5% | 4.2% | 1.4% | -0.8% | -3.6% | 2.8% | 3.6% | 2.6% | 2.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.5% | 10.5% | 7.8% | 19.9% | 6.7% | -3.3% | -15.2% | 14.1% | 20.6% | 16.1% | 14.2% |
| ROA | 2.5% | 2.5% | 1.8% | 4.2% | 1.3% | -0.6% | -3.1% | 3.3% | 4.6% | 3.5% | 2.8% |
| ROIC | 7.3% | 7.3% | 6.4% | 4.9% | 3.0% | 1.4% | -2.0% | 6.7% | 7.0% | 8.1% | 7.8% |
| ROCE | 8.7% | 8.7% | 7.0% | 5.3% | 3.6% | 1.5% | -2.2% | 8.0% | 8.2% | 9.4% | 9.1% |
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 | 1.81 | 1.81 | 1.83 | 1.86 | 2.56 | 2.87 | 3.53 | 2.01 | 2.38 | 2.13 | 2.43 |
| Debt / EBITDA | 4.51 | 4.51 | 4.87 | 6.70 | 9.57 | 10.56 | 29.34 | 4.50 | 5.12 | 4.02 | 4.24 |
| Net Debt / Equity | — | 1.61 | 1.61 | 1.35 | 2.45 | 2.67 | 2.62 | 1.93 | 2.31 | 2.04 | 2.36 |
| Net Debt / EBITDA | 4.01 | 4.01 | 4.29 | 4.84 | 9.17 | 9.84 | 21.75 | 4.34 | 4.97 | 3.84 | 4.12 |
| Debt / FCF | — | 11.18 | 16.36 | 16.43 | 22.61 | 25.92 | — | 12.90 | 16.38 | 9.68 | 15.95 |
| Interest Coverage | 2.12 | 2.12 | 1.94 | 2.21 | 1.12 | 0.68 | -0.66 | 2.45 | 2.34 | 2.82 | 2.37 |
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 | 0.99 | 0.99 | 0.81 | 1.04 | 1.00 | 1.01 | 1.99 | 0.98 | 1.17 | 1.12 | 1.14 |
| Quick Ratio | 0.88 | 0.88 | 0.72 | 0.96 | 0.83 | 0.87 | 1.81 | 0.83 | 0.87 | 0.86 | 0.87 |
| Cash Ratio | 0.18 | 0.18 | 0.17 | 0.41 | 0.10 | 0.19 | 1.07 | 0.09 | 0.09 | 0.10 | 0.07 |
| Asset Turnover | — | 1.39 | 1.37 | 0.95 | 0.91 | 0.84 | 0.82 | 1.18 | 1.15 | 1.33 | 1.36 |
| Inventory Turnover | 41.64 | 41.64 | 41.22 | 36.60 | 22.84 | 26.67 | 27.48 | 35.33 | 19.31 | 21.28 | 21.95 |
| Days Sales Outstanding | — | 44.12 | 44.07 | 44.96 | 57.28 | 52.76 | 40.72 | 40.64 | 41.39 | 40.39 | 37.38 |
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 | 0.7% | 1.1% | 1.0% | 1.7% | 1.9% | 1.9% | 2.3% | 1.4% | 1.3% | 1.4% | 1.3% |
| Payout Ratio | 34.0% | 34.0% | 38.1% | 17.0% | 58.2% | — | — | 24.2% | 18.2% | 27.0% | 32.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.2% | 3.1% | 2.6% | 10.3% | 3.3% | — | — | 5.7% | 7.2% | 5.1% | 4.2% |
| FCF Yield | 3.1% | 4.4% | 2.9% | 4.6% | 5.7% | 4.7% | — | 6.3% | 5.5% | 7.0% | 4.7% |
| Buyback Yield | 0.9% | 1.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.6% | 0.3% | 1.4% | 0.0% |
| Total Shareholder Yield | 1.7% | 2.4% | 1.0% | 1.7% | 1.9% | 1.9% | 2.4% | 2.0% | 1.6% | 2.7% | 1.4% |
| Shares Outstanding | — | $267M | $266M | $263M | $259M | $255M | $252M | $252M | $253M | $252M | $249M |
High leverage and inflation
According to current market data, Aramark trades at a forward P/E of 24.94, which appears elevated relative to its historical performance and suggests that investors are pricing in a significant recovery in profitability that has yet to materialize in the reported quarterly financial statements.
The current EV/EBITDA multiple of 15.63 indicates that the market is assigning a growth premium to the company, potentially anticipating margin expansion from the recent spin-off of the uniform business. However, given the persistent compression in operating margins, this valuation may be vulnerable if the company fails to demonstrate sustained earnings growth in the coming quarters.
Based on reported figures, Aramark's ROIC has remained stagnant, hovering between 1.4% and 2.0% over the last ten quarters, which suggests that the company is struggling to generate meaningful returns on its invested capital base despite its dominant position in the institutional services market.
The low ROIC is heavily influenced by a large goodwill balance, which masks the underlying operational efficiency of the core food service business. Investors should monitor whether management can improve these returns through better asset utilization or if the capital-intensive nature of large-scale contract wins will continue to suppress long-term compounding.
As reported in recent financial filings, Aramark's cash conversion cycle has fluctuated between 23 and 31 days over the past ten quarters, reflecting the inherent difficulty in managing working capital across thousands of disparate, high-volume institutional service locations with varying payment terms.
The variability in the cash conversion cycle suggests that the company lacks consistent leverage over its supply chain or client payment schedules. This inconsistency in working capital management may explain the erratic free cash flow generation observed, as the company is frequently forced to absorb the impact of timing mismatches between service delivery and cash collection.
According to the latest balance sheet data, Aramark maintains a debt-to-equity ratio of 1.92, which, when combined with an interest coverage ratio of 2.67, indicates that the company's ability to service its debt remains under pressure in a higher interest rate environment.
The persistent reliance on debt to fund operations and client investments leaves the company with limited room for error during economic downturns. Investors should be concerned that a significant portion of operating cash flow is diverted to interest payments, which restricts the firm's ability to reinvest in digital integration or sustainable sourcing initiatives.
The P/E ratio is frequently misapplied to Aramark's business model because it fails to account for the significant non-cash amortization of client investments and the lumpy nature of contract-related capital expenditures that distort reported net income.
Analysts should instead focus on EV/EBITDA or free cash flow yields, as these metrics better capture the cash-generating capacity of the underlying service contracts. Relying on P/E ratios obscures the true capital intensity of the business and may lead to an inaccurate assessment of the company's valuation relative to its peers.
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying ARMK stock.
Aramark's current P/E ratio is 46.0x. The historical average is 23.8x. This places it at the 100th percentile of its historical range.
Aramark's current EV/EBITDA is 15.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.7x.
Aramark's return on equity (ROE) is 10.5%. The historical average is 9.6%.
Based on historical data, Aramark is trading at a P/E of 46.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Aramark's current dividend yield is 0.74% with a payout ratio of 34.0%.
Aramark has 5.8% gross margin and 4.3% operating margin.
Aramark's Debt/EBITDA ratio is 4.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.