Latest Ratios: P/E Ratio 22.5x · EV/EBITDA 13.6x · ROE 18.4%. (2013–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.7B | $9.8B | $11.1B | $8.7B | $5.9B | $6.0B | $4.6B | $3.4B | $3.0B | $3.0B | $2.3B |
| Enterprise Value | $9.0B | $9.1B | $10.6B | $8.4B | $5.6B | $5.4B | $3.9B | $3.2B | $2.7B | $2.8B | $2.0B |
| P/E Ratio → | 22.53 | 23.09 | 27.75 | 31.19 | 23.27 | 13.70 | 14.62 | 18.61 | 18.95 | 17.15 | 21.13 |
| P/S Ratio | 3.70 | 3.75 | 4.64 | 4.56 | 3.27 | 2.64 | 2.99 | 2.95 | 2.78 | 3.07 | 2.63 |
| P/B Ratio | 3.91 | 4.01 | 5.10 | 4.76 | 3.67 | 4.15 | 3.30 | 3.48 | 3.39 | 3.47 | 3.14 |
| P/FCF | 14.20 | 14.42 | 13.71 | 33.38 | 69.13 | 8.23 | 8.07 | 12.83 | 13.88 | 12.18 | 10.68 |
| P/OCF | 13.75 | 13.96 | 13.07 | 26.60 | 43.39 | 8.14 | 7.88 | 11.91 | 13.46 | 11.80 | 10.00 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.49 | 4.42 | 4.40 | 3.08 | 2.36 | 2.55 | 2.76 | 2.53 | 2.87 | 2.32 |
| EV / EBITDA | 13.58 | 13.81 | 19.45 | 21.54 | 13.94 | 8.10 | 9.20 | 12.98 | 11.74 | 12.43 | 10.62 |
| EV / EBIT | 14.52 | 16.24 | 18.97 | 21.13 | 14.79 | 8.74 | 9.54 | 13.96 | 12.51 | 12.89 | 11.13 |
| EV / FCF | — | 13.39 | 13.05 | 32.21 | 65.16 | 7.36 | 6.89 | 12.00 | 12.60 | 11.38 | 9.43 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 98.4% | 98.4% | 38.5% | 38.5% | 38.5% | 37.9% | 36.3% | 36.4% | 36.2% | 33.9% | 33.2% |
| Operating Margin | 23.6% | 23.6% | 21.0% | 19.0% | 18.9% | 27.0% | 26.8% | 19.8% | 20.2% | 22.3% | 20.9% |
| Net Profit Margin | 16.3% | 16.3% | 16.7% | 14.6% | 14.0% | 19.3% | 20.5% | 15.9% | 14.7% | 17.9% | 12.4% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.4% | 18.4% | 19.9% | 16.2% | 16.6% | 31.0% | 26.4% | 19.6% | 18.2% | 21.8% | 15.7% |
| ROA | 10.5% | 10.5% | 11.4% | 9.1% | 8.7% | 16.5% | 15.2% | 11.9% | 11.2% | 12.3% | 8.8% |
| ROIC | 16.7% | 16.7% | 15.5% | 12.8% | 14.1% | 28.7% | 22.7% | 16.9% | 18.6% | 19.7% | 18.3% |
| ROCE | 21.4% | 21.4% | 20.1% | 16.7% | 18.1% | 36.8% | 29.3% | 21.8% | 22.9% | 21.6% | 20.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.20 | 0.20 | 0.20 | 0.23 | 0.23 | 0.14 | 0.13 | 0.16 | 0.01 | 0.02 | 0.04 |
| Debt / EBITDA | 0.74 | 0.74 | 0.81 | 1.06 | 0.94 | 0.30 | 0.41 | 0.64 | 0.04 | 0.06 | 0.17 |
| Net Debt / Equity | — | -0.28 | -0.24 | -0.17 | -0.21 | -0.44 | -0.49 | -0.22 | -0.31 | -0.23 | -0.37 |
| Net Debt / EBITDA | -1.05 | -1.05 | -0.98 | -0.78 | -0.85 | -0.96 | -1.59 | -0.90 | -1.19 | -0.87 | -1.40 |
| Debt / FCF | — | -1.02 | -0.66 | -1.17 | -3.97 | -0.87 | -1.19 | -0.83 | -1.27 | -0.80 | -1.25 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($1.2B) exceeds total debt ($492M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.53 | 1.53 | 1.38 | 1.32 | 1.13 | 0.93 | 1.32 | 1.22 | 0.88 | 1.00 | 1.61 |
| Quick Ratio | 1.53 | 1.53 | 1.38 | 1.32 | 1.13 | 0.93 | 1.32 | 1.22 | 0.88 | 1.00 | 1.61 |
| Cash Ratio | 0.98 | 0.98 | 0.86 | 0.83 | 0.78 | 0.71 | 1.04 | 0.76 | 0.58 | 0.48 | 0.78 |
| Asset Turnover | — | 0.61 | 0.63 | 0.60 | 0.61 | 0.79 | 0.63 | 0.69 | 0.76 | 0.68 | 0.63 |
| 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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 1.8% | 1.5% | 1.7% | 2.4% | 1.9% | 2.0% | 2.4% | 2.2% | 1.8% | 2.4% |
| Payout Ratio | 40.9% | 40.9% | 41.3% | 53.0% | 55.2% | 26.2% | 29.4% | 43.9% | 42.1% | 30.2% | 51.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.4% | 4.3% | 3.6% | 3.2% | 4.3% | 7.3% | 6.8% | 5.4% | 5.3% | 5.8% | 4.7% |
| FCF Yield | 7.0% | 6.9% | 7.3% | 3.0% | 1.4% | 12.1% | 12.4% | 7.8% | 7.2% | 8.2% | 9.4% |
| Buyback Yield | 1.8% | 1.8% | 0.5% | 0.3% | 0.8% | 5.1% | 2.2% | 0.9% | 2.3% | 0.6% | 0.0% |
| Total Shareholder Yield | 3.6% | 3.6% | 2.0% | 2.0% | 3.2% | 7.0% | 4.3% | 3.2% | 4.5% | 2.4% | 2.4% |
| Shares Outstanding | — | $68M | $69M | $68M | $68M | $68M | $69M | $66M | $66M | $66M | $67M |
Talent retention and compensation
According to current market data, HLI trades at a forward P/E of 17.99, which suggests investors are pricing in a premium for its counter-cyclical restructuring franchise compared to more volatile, M&A-heavy boutique peers that often face sharper revenue contractions during periods of broader capital market instability.
The firm's valuation multiple appears to be supported by its unique ability to generate fees during economic downturns, effectively smoothing earnings across cycles. While the PEG ratio of 3.45 indicates that the market expects significant future growth, investors should monitor whether this valuation remains sustainable if restructuring demand normalizes from current elevated levels.
Based on reported figures, HLI's ROIC has fluctuated between 2.6% and 4.9% over the last ten quarters, a trend that reflects the firm's asset-light business model where returns are primarily driven by the productivity of its professional staff rather than heavy investment in physical capital or infrastructure.
The relatively modest ROIC figures, when compared to the high-teens returns of peers like Evercore, suggest that HLI's aggressive acquisition strategy and associated goodwill may be temporarily diluting the efficiency of its invested capital. Analysts should evaluate whether these returns improve as recent international integrations reach full operational maturity and scale.
As reported in financial statements, HLI's DSO has remained relatively stable, averaging approximately 31 days over the last ten quarters, which indicates a disciplined approach to fee collection despite the inherent complexity and court-approval delays often associated with the firm's large-scale financial restructuring and advisory mandates.
The firm's ability to maintain consistent collection cycles despite the lumpy nature of success fees is a testament to its strong market position and client leverage. However, any material extension in DSO could signal a shift in client credit quality or an increase in the duration of bankruptcy proceedings, warranting further investigation.
Based on an analysis of HLI's business model, the P/E ratio is frequently misapplied by market participants because it fails to account for the significant non-cash impact of stock-based compensation, which is essential for talent retention but obscures the firm's true underlying cash-generating power and operational profitability.
Investors should instead focus on adjusted earnings metrics or free cash flow, which better reflect the firm's ability to convert advisory success into tangible shareholder value. Relying solely on GAAP P/E may lead to an inaccurate assessment of the firm's valuation, particularly during periods of heavy equity-based incentive issuance.
Includes 30+ ratios · 14 years · Updated daily
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
See how regular investing compounds over time.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying HLI stock.
Houlihan Lokey, Inc.'s current P/E ratio is 22.5x. The historical average is 21.1x. This places it at the 55th percentile of its historical range.
Houlihan Lokey, Inc.'s current EV/EBITDA is 13.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.2x.
Houlihan Lokey, Inc.'s return on equity (ROE) is 18.4%. The historical average is 17.3%.
Based on historical data, Houlihan Lokey, Inc. is trading at a P/E of 22.5x. This is at the 55th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Houlihan Lokey, Inc.'s current dividend yield is 1.81% with a payout ratio of 40.9%.
Houlihan Lokey, Inc. has 98.4% gross margin and 23.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Houlihan Lokey, Inc.'s Debt/EBITDA ratio is 0.7x, indicating low leverage. A ratio below 2x is generally considered financially healthy.