Latest Ratios: P/E Ratio 50.9x · EV/EBITDA 7.5x · ROE 1.3%. (2008–2025 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 | $673M | $1.1B | $1.4B | $1.6B | $1.4B | $1.5B | $1.3B | $1.4B | $1.1B | $1.1B | $1.0B |
| Enterprise Value | $2.3B | $2.7B | $3.2B | $3.3B | $3.3B | $3.4B | $3.0B | $3.3B | $2.4B | $2.0B | $1.7B |
| P/E Ratio → | 50.86 | 65.79 | 10.93 | 10.26 | 16.72 | 7.17 | 18.93 | 11.26 | 13.82 | 9.82 | 8.81 |
| P/S Ratio | 1.82 | 3.01 | 4.33 | 4.59 | 4.11 | 5.65 | 4.62 | 4.98 | 5.03 | 7.20 | 6.79 |
| P/B Ratio | 0.73 | 0.94 | 1.05 | 1.18 | 1.08 | 1.12 | 1.01 | 1.08 | 0.48 | 0.61 | 0.65 |
| P/FCF | 1.77 | 2.94 | 33.99 | 20.67 | 20.36 | 29.21 | 12.14 | 20.74 | — | — | 16.98 |
| P/OCF | 1.77 | 2.94 | 33.99 | 20.67 | 20.36 | 29.21 | 12.14 | 20.74 | — | — | 16.98 |
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 | — | 7.31 | 9.65 | 9.61 | 9.61 | 12.58 | 10.96 | 11.80 | 11.04 | 12.48 | 11.09 |
| EV / EBITDA | 7.46 | 8.92 | 27.24 | — | 39.81 | 16.19 | 48.80 | 29.09 | 33.67 | 17.96 | 15.09 |
| EV / EBIT | 16.09 | 19.17 | 12.56 | 12.51 | 39.81 | 11.97 | 48.80 | 29.09 | 33.67 | 17.96 | 15.09 |
| EV / FCF | — | 7.14 | 75.81 | 43.24 | 47.60 | 64.99 | 28.83 | 49.20 | — | — | 27.73 |
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 | 83.6% | 83.6% | 75.0% | 75.5% | 78.1% | 72.4% | 21.0% | 39.3% | 34.2% | 69.6% | 74.7% |
| Operating Margin | 38.0% | 38.0% | 76.9% | 76.8% | 50.8% | 105.0% | 22.5% | 40.6% | 32.8% | 69.5% | 73.5% |
| Net Profit Margin | 4.5% | 4.5% | 34.4% | 39.6% | 21.5% | 75.4% | 21.6% | 40.6% | 32.6% | 69.2% | 73.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.3% | 1.3% | 8.4% | 10.2% | 5.6% | 15.6% | 4.6% | 6.2% | 3.4% | 6.3% | 9.2% |
| ROA | 0.5% | 0.5% | 3.5% | 4.2% | 2.2% | 6.3% | 1.8% | 3.9% | 3.3% | 6.1% | 6.9% |
| ROIC | 3.5% | 3.5% | 6.0% | 6.1% | 4.0% | 6.7% | 1.5% | 2.4% | 1.7% | 3.3% | 4.3% |
| ROCE | 4.8% | 4.8% | 8.0% | 8.1% | 5.3% | 8.9% | 1.9% | 4.5% | 4.6% | 8.3% | 9.9% |
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 | 1.41 | 1.41 | 1.35 | 1.34 | 1.49 | 1.42 | 1.45 | 1.51 | 0.59 | 0.47 | 0.44 |
| Debt / EBITDA | 5.51 | 5.51 | 15.71 | — | 23.63 | 9.20 | 29.54 | 17.26 | 19.02 | 7.92 | 6.27 |
| Net Debt / Equity | — | 1.34 | 1.29 | 1.29 | 1.44 | 1.38 | 1.39 | 1.48 | 0.57 | 0.45 | 0.41 |
| Net Debt / EBITDA | 5.25 | 5.25 | 15.03 | — | 22.78 | 8.92 | 28.25 | 16.82 | 18.34 | 7.60 | 5.85 |
| Debt / FCF | — | 4.20 | 41.82 | 22.57 | 27.23 | 35.78 | 16.69 | 28.45 | — | — | 10.76 |
| Interest Coverage | 1.14 | 1.14 | 1.86 | 2.10 | 0.91 | 3.84 | 0.77 | 1.34 | 1.28 | 2.96 | 3.91 |
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 | 0.57 | 0.57 | 7.18 | 5.59 | 5.47 | 3.52 | 2.75 | 4.42 | 0.11 | 0.14 | 0.14 |
| Quick Ratio | 0.57 | 0.57 | 7.18 | 5.59 | 5.47 | 3.52 | 2.75 | 4.42 | 0.11 | 0.14 | 0.14 |
| Cash Ratio | 0.37 | 0.37 | 4.69 | 3.43 | 3.63 | 2.30 | 1.86 | 2.66 | 0.07 | 0.07 | 0.10 |
| Asset Turnover | — | 0.13 | 0.10 | 0.11 | 0.10 | 0.08 | 0.09 | 0.08 | 0.09 | 0.08 | 0.09 |
| 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 | 15.7% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 823.0% | 823.0% | 1.6% | — | — | — | — | — | 139.7% | 86.1% | 76.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.0% | 1.5% | 9.1% | 9.7% | 6.0% | 13.9% | 5.3% | 8.9% | 7.2% | 10.2% | 11.3% |
| FCF Yield | 56.4% | 34.0% | 2.9% | 4.8% | 4.9% | 3.4% | 8.2% | 4.8% | — | — | 5.9% |
| Buyback Yield | 7.7% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 23.5% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $121M | $127M | $123M | $115M | $110M | $110M | $100M | $89M | $84M | $73M |
High leverage and volatility
According to current market data, NMFC trades at a P/E of 50.14x and a P/B of 0.72x, suggesting that investors are heavily discounting the firm's book value while simultaneously pricing in significant volatility in future earnings potential compared to more stable, larger-cap BDC peers like Ares Capital.
The wide gap between the trailing P/E and the forward P/E of 6.40x implies that the market expects a substantial recovery in earnings, though this appears optimistic given the historical volatility in net margins. Investors should monitor whether this valuation discount is a structural response to the firm's high leverage profile or a temporary mispricing of its specialized software-lending niche.
Based on reported figures, NMFC's ROE has struggled to maintain positive territory, frequently dipping into negative values such as the -4.6% observed in 2026Q1, which indicates that the firm is currently failing to generate meaningful returns on its invested capital relative to its cost of funding.
The erratic nature of ROIC, which fluctuated from 1.4% in 2025Q3 to -0.7% in 2026Q1, suggests that the underlying portfolio is not compounding value effectively. This performance gap against peers like TSLX warrants further investigation into whether the firm's defensive growth strategy is being undermined by credit markdowns or excessive interest expenses.
As reported in financial statements, NMFC's debt-to-equity ratio has consistently hovered near 1.40x, placing the firm at the upper end of its regulatory leverage capacity and significantly limiting its ability to absorb further credit shocks without compromising its dividend-paying capacity or overall balance sheet stability.
The high leverage ratio appears to be a structural feature of the firm's business model, yet it leaves little room for error in a rising rate environment. Investors should monitor the interest coverage ratio, which has shown signs of deterioration, as any further decline could force management to deleverage at unfavorable market valuations.
Based on industry standards, the P/E ratio is a fundamentally flawed metric for evaluating NMFC, as it fails to account for the non-cash valuation adjustments and PIK income that frequently distort net income, thereby obscuring the true cash-generating ability of the underlying credit portfolio.
Analysts should instead focus on Net Investment Income (NII) and NAV per share to assess the firm's performance, as these metrics provide a clearer view of recurring cash flows. Relying on P/E multiples in this context risks misinterpreting accounting noise as operational success or failure, leading to potentially erroneous conclusions about the firm's valuation.
Includes 30+ ratios · 18 years · Updated daily
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Quick answers to the most common questions about buying NMFC stock.
New Mountain Finance Corporation's current P/E ratio is 50.9x. The historical average is 17.1x. This places it at the 93th percentile of its historical range.
New Mountain Finance Corporation's current EV/EBITDA is 7.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 28.5x.
New Mountain Finance Corporation's return on equity (ROE) is 1.3%. The historical average is 13.1%.
Based on historical data, New Mountain Finance Corporation is trading at a P/E of 50.9x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
New Mountain Finance Corporation's current dividend yield is 15.74% with a payout ratio of 823.0%.
New Mountain Finance Corporation has 83.6% gross margin and 38.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
New Mountain Finance Corporation's Debt/EBITDA ratio is 5.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.