Latest Ratios: P/E Ratio 17.8x · EV/EBITDA 16.1x · ROE 20.4%. (2018–2025 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 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.5B | $2.4B | $2.6B | $2.3B | $4.6B | $5.5B | — | — | — |
| Enterprise Value | $5.1B | $5.0B | $6.4B | $6.4B | $8.2B | $8.3B | — | — | — |
| P/E Ratio → | 17.80 | 17.44 | — | — | 109.24 | 560.33 | — | — | — |
| P/S Ratio | 1.34 | 1.30 | 1.11 | 1.00 | 2.24 | 3.77 | — | — | — |
| P/B Ratio | 3.23 | 3.17 | 4.28 | 2.55 | 2.75 | 3.36 | — | — | — |
| P/FCF | 23.16 | 22.53 | — | — | — | 44.98 | — | — | — |
| P/OCF | 7.55 | 7.35 | 10.77 | 10.10 | 23.09 | 19.50 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.68 | 2.75 | 2.78 | 4.05 | 5.67 | — | — | — |
| EV / EBITDA | 16.15 | 15.93 | 133.48 | — | 23.77 | 28.73 | — | — | — |
| EV / EBIT | 21.87 | 22.48 | — | — | 45.18 | 75.14 | — | — | — |
| EV / FCF | — | 46.27 | — | — | — | 67.65 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 45.0% | 45.0% | 52.4% | 44.8% | 47.6% | 49.4% | 61.6% | 62.7% | 41.8% |
| Operating Margin | 12.4% | 12.4% | -6.0% | -29.8% | 9.8% | 12.1% | 10.5% | 11.7% | 11.8% |
| Net Profit Margin | 7.5% | 7.5% | -12.5% | -32.3% | 2.1% | 0.7% | -0.5% | 1.3% | 1.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.4% | 20.4% | -38.6% | -58.2% | 2.6% | 0.7% | -0.6% | 2.1% | 1.6% |
| ROA | 3.0% | 3.0% | -5.2% | -12.0% | 0.7% | 0.2% | -0.1% | 0.5% | 0.5% |
| ROIC | 4.5% | 4.5% | -2.2% | -10.0% | 3.1% | 3.2% | 2.6% | 3.9% | 4.0% |
| ROCE | 5.6% | 5.6% | -2.7% | -12.0% | 3.5% | 3.6% | 3.1% | 4.8% | 4.8% |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.47 | 3.47 | 6.58 | 4.72 | 2.37 | 2.01 | 2.66 | 4.54 | 1.60 |
| Debt / EBITDA | 8.50 | 8.50 | 83.00 | — | 11.29 | 11.43 | 18.77 | 13.95 | 8.99 |
| Net Debt / Equity | — | 3.33 | 6.30 | 4.52 | 2.23 | 1.70 | 2.50 | 4.42 | 1.52 |
| Net Debt / EBITDA | 8.17 | 8.17 | 79.47 | — | 10.64 | 9.63 | 17.66 | 13.58 | 8.51 |
| Debt / FCF | — | 23.74 | — | — | — | 22.68 | 87.88 | 97.40 | 39.99 |
| Interest Coverage | 1.83 | 1.83 | -1.02 | -4.16 | 1.60 | 1.46 | 1.07 | 1.22 | 1.39 |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.75 | 0.75 | 1.52 | 1.92 | 1.13 | 1.61 | 1.22 | 1.17 | 1.33 |
| Quick Ratio | 0.67 | 0.67 | 1.36 | 1.73 | 0.99 | 1.51 | 1.08 | 1.00 | 1.23 |
| Cash Ratio | 0.14 | 0.14 | 0.39 | 0.41 | 0.45 | 1.10 | 0.57 | 0.22 | 0.41 |
| Asset Turnover | — | 0.45 | 0.44 | 0.39 | 0.31 | 0.25 | 0.19 | 0.32 | 0.38 |
| Inventory Turnover | 19.57 | 19.57 | 16.50 | 15.29 | 14.79 | 15.80 | 8.06 | 8.55 | 33.78 |
| Days Sales Outstanding | — | 35.52 | 30.16 | 26.49 | 35.00 | 31.04 | 35.47 | 47.88 | 32.00 |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | 2108.4% | 750.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.6% | 5.7% | — | — | 0.9% | 0.2% | — | — | — |
| FCF Yield | 4.3% | 4.4% | — | — | — | 2.2% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 2.2% | 0.0% | 0.8% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 2.2% | 0.0% | 0.8% | — | — | — |
| Shares Outstanding | — | $164M | $160M | $162M | $167M | $165M | $170M | $165M | $165M |
High leverage and volatility
According to recent market data, DRVN trades at a forward P/E of 11.53, which appears to discount the company's historical volatility and suggests that investors remain skeptical regarding the sustainability of future earnings growth compared to the broader automotive service sector's more stable valuation multiples.
The current P/E of 16.55 relative to a forward P/E of 11.53 implies that the market is pricing in a significant contraction in earnings or a lack of confidence in management's ability to execute on margin expansion. This valuation gap warrants further investigation into whether the stock is a value play or a value trap, given the persistent instability in the company's bottom-line performance.
Based on reported financial statements, DRVN's ROIC has struggled to exceed 2.3% in recent quarters, indicating that the company is failing to generate returns on invested capital that meaningfully exceed its cost of capital, a trend that appears to be exacerbated by its heavy debt burden.
The low ROIC, which dipped into negative territory in 2024Q4, suggests that the aggressive acquisition strategy has not yet translated into efficient capital compounding. Investors should monitor whether management can improve asset utilization, as the current returns appear insufficient to justify the capital intensity required to maintain the service footprint.
As reported in quarterly filings, DRVN's cash conversion cycle has fluctuated significantly, reaching 57 days in 2025Q4, which suggests that the company's working capital management is currently inefficient and potentially straining the liquidity needed to support its high-frequency service model.
The variability in DSO and DPO indicates a lack of consistent control over the cash cycle, which is critical for a business model that relies on high throughput. This inefficiency appears to be a structural drag on cash flow, making the company more vulnerable to operational disruptions than its more streamlined peers.
Based on the latest financial disclosures, DRVN maintains a debt-to-equity ratio of 2.77, which, while improved from previous peaks, continues to signal a capital structure that is highly sensitive to interest rate fluctuations and limits the company's strategic flexibility in a volatile macro environment.
The interest coverage ratio of 2.88 in 2026Q1 suggests that while the company is currently meeting its obligations, the margin for error remains thin. Any further deterioration in operating income could quickly pressure the company's ability to service its debt, necessitating a cautious approach to future inorganic growth.
Investors frequently misapply standard P/E multiples to DRVN, failing to account for the significant non-cash amortization charges and pass-through advertising funds that distort GAAP earnings and obscure the company's true underlying cash-generating capacity as a multi-brand service platform.
Using P/E as the primary valuation metric ignores the impact of the company's aggressive acquisition history on the income statement. A more appropriate approach would involve focusing on EV/EBITDA or free cash flow yield, which better capture the operational reality of the business and strip away the noise created by accounting-heavy non-cash expenses.
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Quick answers to the most common questions about buying DRVN stock.
Driven Brands Holdings Inc.'s current P/E ratio is 17.8x. The historical average is 63.3x. This places it at the 50th percentile of its historical range.
Driven Brands Holdings Inc.'s current EV/EBITDA is 16.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 22.8x.
Driven Brands Holdings Inc.'s return on equity (ROE) is 20.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -8.7%.
Based on historical data, Driven Brands Holdings Inc. is trading at a P/E of 17.8x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Driven Brands Holdings Inc. has 45.0% gross margin and 12.4% operating margin. Operating margin between 10-20% is typical for established companies.
Driven Brands Holdings Inc.'s Debt/EBITDA ratio is 8.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.