Latest Ratios: P/E Ratio 13.9x · EV/EBITDA 6.7x · ROE 14.4%. (1998–2026 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 | $3.7B | $3.5B | $3.3B | $3.1B | $2.5B | $3.3B | $3.6B | $1.6B | $2.6B | $3.0B | $1.8B |
| Enterprise Value | $3.2B | $3.0B | $2.8B | $2.8B | $2.2B | $2.9B | $3.4B | $1.5B | $2.2B | $2.7B | $1.7B |
| P/E Ratio → | 13.94 | 12.73 | 13.41 | 18.80 | 12.16 | 10.27 | 32.48 | 15.17 | 25.69 | 22.46 | 22.04 |
| P/S Ratio | 1.26 | 1.19 | 1.18 | 1.12 | 0.87 | 1.24 | 1.99 | 0.80 | 1.34 | 1.65 | 1.14 |
| P/B Ratio | 1.93 | 1.76 | 1.74 | 1.80 | 1.51 | 2.12 | 2.65 | 1.29 | 2.12 | 2.47 | 1.70 |
| P/FCF | 11.41 | 10.76 | 10.79 | 13.65 | 9.11 | 7.25 | 16.46 | 8.10 | 12.43 | 16.98 | 32.93 |
| P/OCF | 8.94 | 8.42 | 8.94 | 11.00 | 7.24 | 6.54 | 14.42 | 6.68 | 10.19 | 13.72 | 17.38 |
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 | — | 1.01 | 1.02 | 0.99 | 0.77 | 1.10 | 1.85 | 0.77 | 1.13 | 1.50 | 1.04 |
| EV / EBITDA | 6.69 | 6.24 | 6.58 | 7.68 | 5.18 | 5.43 | 15.50 | 6.57 | 11.93 | 10.59 | 10.08 |
| EV / EBIT | 8.46 | 7.89 | 7.72 | 11.34 | 6.88 | 6.33 | 17.48 | 8.78 | 14.77 | 12.38 | 13.34 |
| EV / FCF | — | 9.12 | 9.34 | 12.07 | 8.09 | 6.41 | 15.31 | 7.80 | 10.53 | 15.37 | 30.17 |
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 | 25.6% | 25.6% | 88.6% | 88.1% | 90.7% | 95.0% | 24.2% | 93.4% | 93.8% | 93.1% | 92.1% |
| Operating Margin | 12.8% | 12.8% | 12.6% | 10.1% | 12.5% | 17.8% | 8.6% | 8.9% | 7.1% | 11.5% | 7.4% |
| Net Profit Margin | 9.4% | 9.4% | 8.9% | 6.1% | 7.3% | 12.3% | 6.3% | 5.3% | 5.2% | 7.4% | 5.2% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.4% | 14.4% | 13.6% | 10.0% | 13.1% | 22.4% | 8.8% | 8.5% | 8.3% | 11.6% | 7.9% |
| ROA | 7.0% | 7.0% | 6.5% | 4.7% | 6.0% | 10.0% | 3.9% | 4.1% | 4.4% | 6.1% | 4.3% |
| ROIC | 19.5% | 19.5% | 18.6% | 15.3% | 21.2% | 30.9% | 10.2% | 13.2% | 11.9% | 16.7% | 9.8% |
| ROCE | 12.5% | 12.5% | 12.3% | 10.5% | 14.1% | 19.6% | 7.0% | 9.0% | 8.0% | 12.5% | 7.9% |
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 | 0.28 | 0.28 | 0.30 | 0.33 | 0.34 | 0.38 | 0.44 | 0.51 | 0.18 | 0.19 | 0.24 |
| Debt / EBITDA | 1.19 | 1.19 | 1.33 | 1.61 | 1.32 | 1.12 | 2.75 | 2.72 | 1.19 | 0.92 | 1.53 |
| Net Debt / Equity | — | -0.27 | -0.23 | -0.21 | -0.17 | -0.25 | -0.18 | -0.05 | -0.32 | -0.23 | -0.14 |
| Net Debt / EBITDA | -1.12 | -1.12 | -1.02 | -1.00 | -0.65 | -0.72 | -1.16 | -0.26 | -2.15 | -1.11 | -0.92 |
| Debt / FCF | — | -1.64 | -1.45 | -1.58 | -1.02 | -0.85 | -1.14 | -0.31 | -1.90 | -1.61 | -2.77 |
| Interest Coverage | 18.74 | 18.74 | 17.94 | 11.62 | 12.43 | 18.12 | 6.59 | 7.80 | 8.95 | 15.90 | 8.67 |
Net cash position: cash ($1.1B) exceeds total debt ($563M)
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 | 1.94 | 1.94 | 1.83 | 1.79 | 1.68 | 1.79 | 1.98 | 1.98 | 2.06 | 1.82 | 1.84 |
| Quick Ratio | 1.94 | 1.94 | 1.83 | 1.79 | 1.68 | 1.79 | 1.98 | 1.98 | 2.06 | 1.82 | 1.84 |
| Cash Ratio | 1.16 | 1.16 | 1.09 | 1.05 | 0.91 | 1.05 | 1.22 | 1.17 | 1.15 | 0.96 | 0.91 |
| Asset Turnover | — | 0.72 | 0.72 | 0.76 | 0.80 | 0.76 | 0.60 | 0.72 | 0.85 | 0.80 | 0.79 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 71.21 | 79.80 | 75.95 | 81.20 | 85.90 | 98.02 | 80.47 | 79.81 | 83.07 | 84.83 |
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 | 2.7% | 3.0% | 2.6% | 1.7% | 1.3% | 0.8% | 0.6% | 1.4% | 0.9% | 0.8% | 1.3% |
| Payout Ratio | 37.7% | 37.7% | 34.0% | 32.2% | 15.7% | 8.2% | 19.7% | 21.7% | 22.9% | 17.2% | 27.7% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.2% | 7.9% | 7.5% | 5.3% | 8.2% | 9.7% | 3.1% | 6.6% | 3.9% | 4.5% | 4.5% |
| FCF Yield | 8.8% | 9.3% | 9.3% | 7.3% | 11.0% | 13.8% | 6.1% | 12.3% | 8.0% | 5.9% | 3.0% |
| Buyback Yield | 3.1% | 3.3% | 2.7% | 1.7% | 3.8% | 2.9% | 0.8% | 5.9% | 1.4% | 1.1% | 1.6% |
| Total Shareholder Yield | 5.9% | 6.3% | 5.3% | 3.4% | 5.2% | 3.8% | 1.5% | 7.3% | 2.3% | 1.9% | 2.8% |
| Shares Outstanding | — | $53M | $53M | $51M | $52M | $53M | $53M | $55M | $56M | $56M | $57M |
Cyclical white-collar hiring sensitivity
Based on current market data, Korn Ferry trades at a 13.83x TTM P/E, which appears to discount its consulting and digital segments by pricing the firm closer to cyclical staffing peers like ManpowerGroup rather than higher-multiple professional services firms like Marsh McLennan or Willis Towers Watson.
The current valuation suggests the market remains skeptical of the durability of non-search revenue streams, despite the firm's strategic pivot toward organizational consulting. Investors should monitor whether the PEG ratio of 0.69 indicates an undervalued growth opportunity or a market expectation that future earnings will face significant cyclical headwinds.
As reported in financial statements, Korn Ferry's ROIC has fluctuated between 2.4% and 5.2% over the last ten quarters, suggesting that the firm is struggling to generate consistent returns on its invested capital base, which is heavily weighted by past acquisitions and goodwill.
The modest ROIC levels indicate that while the firm has successfully diversified its service offerings, the integration of these units has yet to yield the compounding returns typical of high-moat consulting businesses. This trend warrants further investigation into whether the firm's capital allocation strategy is effectively driving shareholder value or merely maintaining scale.
According to recent SEC filings, Korn Ferry's asset turnover remains stubbornly low at approximately 0.19, reflecting the capital-intensive nature of its balance sheet relative to the service-based revenue model, which is further complicated by significant quarterly fluctuations in DSO and accounts payable cycles.
The inconsistency in the cash conversion cycle suggests that the firm's working capital efficiency is highly sensitive to the timing of large-scale project billing and annual bonus payouts. This lack of operational fluidity may indicate that the firm's internal processes are not yet fully optimized for the scale of its diversified consulting operations.
Based on reported figures, Korn Ferry maintains a disciplined debt-to-equity ratio of 0.28, which, when paired with an interest coverage ratio consistently above 15x, suggests that the firm is well-positioned to navigate periods of economic volatility without facing significant refinancing or covenant risks.
This conservative capital structure appears to be a deliberate choice by management to maintain a fortress-like balance sheet, potentially to fund future opportunistic acquisitions. While this approach limits financial risk, investors should consider whether the firm is under-leveraging its balance sheet in a way that suppresses potential ROE expansion.
The most commonly misapplied metric for Korn Ferry is the standard P/E ratio, which fails to account for the firm's transition from a transactional search business to a recurring-revenue consulting model, thereby obscuring the true quality of its earnings and the stickiness of its digital service offerings.
Analysts should instead focus on 'Fee Revenue' and segment-specific margins to strip out the noise of pass-through expenses and cyclical search volatility. Relying on headline P/E multiples risks mischaracterizing the firm as a pure-play recruiter, which ignores the structural moat provided by its proprietary talent assessment data and consulting IP.
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying KFY stock.
Korn Ferry's current P/E ratio is 13.9x. The historical average is 28.8x. This places it at the 21th percentile of its historical range.
Korn Ferry's current EV/EBITDA is 6.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.1x.
Korn Ferry's return on equity (ROE) is 14.4%. The historical average is 5.5%.
Based on historical data, Korn Ferry is trading at a P/E of 13.9x. This is at the 21th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Korn Ferry's current dividend yield is 2.74% with a payout ratio of 37.7%.
Korn Ferry has 25.6% gross margin and 12.8% operating margin. Operating margin between 10-20% is typical for established companies.
Korn Ferry's Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.