Latest Ratios: P/E Ratio 9.8x · EV/EBITDA 110.4x · ROE 28.8%. (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 | $473M | $462M | $428M | $488M | $575M | $618M | $480M | $483M | $525M | $713M | $718M |
| Enterprise Value | $6.8B | $6.8B | $392M | $442M | $512M | $537M | $381M | $390M | $441M | $637M | $661M |
| P/E Ratio → | 9.77 | 9.46 | 9.90 | 11.56 | 14.22 | 8.32 | 12.41 | 8.78 | 11.34 | 14.27 | 15.60 |
| P/S Ratio | 3.00 | 2.92 | 2.83 | 3.57 | 3.72 | 3.39 | 3.80 | 3.53 | 3.61 | 4.91 | 5.28 |
| P/B Ratio | 2.70 | 2.62 | 2.63 | 3.05 | 3.23 | 3.05 | 2.48 | 2.33 | 2.03 | 3.71 | 4.69 |
| P/FCF | — | — | 28.08 | 14.09 | 14.60 | 24.50 | 8.37 | 8.58 | 19.21 | 11.93 | 36.67 |
| P/OCF | — | — | 25.77 | 14.08 | 14.56 | 23.47 | 8.03 | 8.47 | 18.67 | 11.71 | 35.78 |
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 | — | 43.19 | 2.60 | 3.23 | 3.31 | 2.95 | 3.02 | 2.85 | 3.03 | 4.39 | 4.86 |
| EV / EBITDA | 110.39 | 110.20 | 8.70 | 12.01 | 7.79 | 6.93 | 8.20 | 7.93 | 6.09 | 9.38 | 10.36 |
| EV / EBIT | 112.55 | 101.34 | 8.94 | 12.45 | 7.96 | 7.04 | 8.37 | 8.13 | 6.19 | 9.50 | 10.48 |
| EV / FCF | — | — | 25.76 | 12.76 | 13.00 | 21.30 | 6.65 | 6.92 | 16.12 | 10.65 | 33.75 |
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 | 96.0% | 96.0% | 45.1% | 41.8% | 55.1% | 53.8% | 49.5% | 49.1% | 60.5% | 59.3% | 58.7% |
| Operating Margin | 38.4% | 38.4% | 29.0% | 26.0% | 41.6% | 41.9% | 36.0% | 35.1% | 48.9% | 46.1% | 46.3% |
| Net Profit Margin | 30.9% | 30.9% | 28.6% | 30.9% | 26.2% | 40.7% | 30.6% | 40.2% | 32.5% | 34.4% | 33.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 28.8% | 28.8% | 26.7% | 25.0% | 21.3% | 37.5% | 19.3% | 23.6% | 21.0% | 28.9% | 35.6% |
| ROA | 19.3% | 19.3% | 18.1% | 17.5% | 15.1% | 27.0% | 14.4% | 18.4% | 16.4% | 22.2% | 26.7% |
| ROIC | 1.3% | 1.3% | 20.0% | 15.7% | 25.4% | 28.9% | 17.1% | 15.5% | 23.7% | 29.1% | 36.6% |
| ROCE | 26.0% | 26.0% | 21.7% | 17.5% | 28.7% | 32.7% | 19.6% | 18.5% | 28.9% | 35.2% | 44.6% |
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 | 36.26 | 36.26 | 0.04 | 0.00 | — | — | — | — | — | — | — |
| Debt / EBITDA | 103.41 | 103.41 | 0.14 | 0.02 | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 36.03 | -0.22 | -0.29 | -0.36 | -0.40 | -0.51 | -0.45 | -0.33 | -0.40 | -0.37 |
| Net Debt / EBITDA | 102.74 | 102.74 | -0.78 | -1.26 | -0.96 | -1.04 | -2.12 | -1.90 | -1.17 | -1.13 | -0.90 |
| Debt / FCF | — | — | -2.32 | -1.33 | -1.60 | -3.20 | -1.72 | -1.66 | -3.09 | -1.28 | -2.92 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
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 | 75115.85 | 75115.85 | 1.81 | 2.01 | 2.07 | 2.22 | 3.28 | 3.32 | 2.38 | 2.73 | 2.43 |
| Quick Ratio | 75115.85 | 75115.85 | 1.81 | 2.01 | 2.07 | 2.22 | 3.28 | 3.32 | 2.38 | 2.73 | 2.43 |
| Cash Ratio | 50.69 | 50.69 | 1.12 | 1.35 | 1.53 | 1.73 | 2.71 | 2.64 | 1.87 | 2.05 | 1.76 |
| Asset Turnover | — | 0.61 | 0.62 | 0.59 | 0.62 | 0.64 | 0.48 | 0.50 | 0.45 | 0.58 | 0.68 |
| 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 | 5.7% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 55.8% | 55.8% | 38.3% | 41.9% | 75.9% | 98.3% | 98.2% | 55.1% | 59.3% | 48.6% | 44.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.2% | 10.6% | 10.1% | 8.6% | 7.0% | 12.0% | 8.1% | 11.4% | 8.8% | 7.0% | 6.4% |
| FCF Yield | — | — | 3.6% | 7.1% | 6.8% | 4.1% | 11.9% | 11.7% | 5.2% | 8.4% | 2.7% |
| Buyback Yield | 3.6% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 9.3% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $3M | $3M | $3M | $3M | $3M | $3M | $3M | $4M | $3M | $3M |
Market-driven revenue volatility
According to recent market data, Diamond Hill trades at a P/E of 9.77, which appears to reflect a persistent valuation discount relative to broader asset management peers, likely driven by investor concerns regarding the long-term viability of active management strategies in an increasingly passive-dominated investment landscape.
The current forward P/E of 9.48 suggests that the market is pricing in stagnant or declining earnings, potentially overlooking the firm's capacity-constrained alpha generation model. Investors should monitor whether this valuation gap represents a structural mispricing of the firm's institutional stickiness or a rational response to the inherent cyclicality of its fee-based revenue.
As reported in financial statements, Diamond Hill's operating margin has fluctuated significantly between 13.1% and 59.7% over the last ten quarters, indicating that the firm's high operating leverage makes its profitability profile highly sensitive to shifts in AUM and the resulting impact on professional compensation expenses.
While the gross margin remains structurally high, the volatility in operating margins suggests that the firm's cost base is not as flexible as the revenue stream, leading to earnings compression during market downturns. Analysts should focus on the compensation-to-revenue ratio as the primary indicator of true earning power, adjusting for non-recurring investment income.
Based on reported figures, Diamond Hill's ROIC has shown erratic behavior, ranging from 1.9% to 9.3% over the past ten quarters, which suggests that the firm's ability to compound capital is heavily influenced by market-driven fluctuations in its corporate investment portfolio rather than purely operational efficiency.
The lack of a clear upward trend in ROIC warrants further investigation into whether the firm is effectively deploying its excess cash or if it is merely subject to the volatility of its seed capital investments. This inconsistency makes it difficult to assess the firm's long-term value creation capability relative to its historical performance.
According to recent balance sheet filings, Diamond Hill maintains a debt-to-equity ratio consistently near 0.04, signaling a highly conservative capital structure that provides the firm with significant financial flexibility to navigate market volatility without the burden of substantial interest obligations or restrictive debt covenants.
This minimal leverage position is a key defensive attribute, distinguishing the firm from more capital-intensive peers and supporting its ability to continue shareholder distributions even during periods of revenue contraction. Investors should monitor whether management intends to utilize this balance sheet capacity for strategic acquisitions or if it will remain a permanent buffer.
As indicated by the firm's unique business model, the P/E ratio is frequently misapplied to Diamond Hill, as it fails to account for the significant distortion caused by non-operating gains and losses from the firm's own seed capital investments, which can artificially inflate or deflate headline earnings.
Analysts should instead utilize an adjusted P/E or EV/EBITDA metric that strips out non-operating investment income to better reflect the core advisory business's performance. Relying on standard P/E multiples may lead to an inaccurate assessment of the firm's valuation, as it conflates investment management success with corporate portfolio volatility.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying DHIL stock.
Diamond Hill Investment Group, Inc.'s current P/E ratio is 9.8x. The historical average is 16.8x. This places it at the 13th percentile of its historical range.
Diamond Hill Investment Group, Inc.'s current EV/EBITDA is 110.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.7x.
Diamond Hill Investment Group, Inc.'s return on equity (ROE) is 28.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 27.6%.
Based on historical data, Diamond Hill Investment Group, Inc. is trading at a P/E of 9.8x. This is at the 13th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Diamond Hill Investment Group, Inc.'s current dividend yield is 5.71% with a payout ratio of 55.8%.
Diamond Hill Investment Group, Inc. has 96.0% gross margin and 38.4% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Diamond Hill Investment Group, Inc.'s Debt/EBITDA ratio is 103.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.