Latest Ratios: P/E Ratio 7.6x · EV/EBITDA 6.5x · ROE 27.5%. (2004–2025 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 | $1.4B | $1.7B | $1.5B | $916M | $1.4B | $1.9B | $997M | $1.8B | $2.3B | $2.7B | $3.8B |
| Enterprise Value | $2.8B | $3.1B | $2.9B | $2.5B | $3.1B | $3.5B | $2.8B | $3.3B | $4.0B | $4.5B | $5.5B |
| P/E Ratio → | 7.59 | 8.61 | 9.49 | 4.96 | 7.59 | 8.02 | 8.78 | 6.59 | 8.84 | 12.55 | 17.12 |
| P/S Ratio | 0.37 | 0.46 | 0.39 | 0.25 | 0.36 | 0.50 | 0.28 | 0.46 | 0.58 | 0.69 | 0.97 |
| P/B Ratio | 1.88 | 2.13 | 2.31 | 1.80 | 4.73 | 6.85 | 64.53 | — | — | — | — |
| P/FCF | 7.93 | 9.79 | 9.98 | 5.78 | 24.27 | 6.25 | 3.15 | 8.42 | 7.96 | 10.62 | 19.13 |
| P/OCF | 4.98 | 6.15 | 5.89 | 3.68 | 8.88 | 5.04 | 2.33 | 5.59 | 6.11 | 7.86 | 10.89 |
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 | — | 0.84 | 0.79 | 0.66 | 0.80 | 0.89 | 0.80 | 0.85 | 1.01 | 1.15 | 1.40 |
| EV / EBITDA | 6.51 | 7.26 | 7.49 | 5.78 | 6.98 | 6.66 | 7.73 | 7.24 | 7.42 | 7.63 | 9.23 |
| EV / EBIT | 8.49 | 9.47 | 10.37 | 7.29 | 7.77 | 8.11 | 10.36 | 7.23 | 9.32 | 9.42 | 11.08 |
| EV / FCF | — | 17.97 | 20.23 | 15.57 | 53.33 | 11.26 | 8.95 | 15.58 | 13.89 | 17.70 | 27.62 |
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 | 51.6% | 51.6% | 50.9% | 50.8% | 50.8% | 50.4% | 48.8% | 49.3% | 49.4% | 49.9% | 49.7% |
| Operating Margin | 8.9% | 8.9% | 7.6% | 8.7% | 8.8% | 10.8% | 7.4% | 9.0% | 10.8% | 12.2% | 12.6% |
| Net Profit Margin | 5.3% | 5.3% | 4.1% | 5.0% | 4.8% | 6.2% | 3.2% | 7.0% | 6.6% | 5.5% | 5.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 27.5% | 27.5% | 27.0% | 46.0% | 63.9% | 162.0% | 733.3% | — | — | — | — |
| ROA | 6.9% | 6.9% | 5.6% | 7.0% | 6.8% | 8.4% | 4.5% | 12.9% | 12.2% | 10.1% | 10.5% |
| ROIC | 11.4% | 11.4% | 10.1% | 12.1% | 13.4% | 17.1% | 11.7% | 18.2% | 22.3% | 25.1% | 27.0% |
| ROCE | 14.6% | 14.6% | 13.0% | 16.0% | 16.5% | 18.5% | 13.0% | 21.6% | 27.0% | 30.0% | 30.7% |
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 | 1.97 | 1.97 | 2.54 | 3.29 | 5.91 | 6.92 | 151.83 | — | — | — | — |
| Debt / EBITDA | 3.65 | 3.65 | 4.07 | 3.92 | 3.96 | 3.73 | 6.41 | 3.48 | 3.31 | 3.16 | 2.98 |
| Net Debt / Equity | — | 1.78 | 2.37 | 3.05 | 5.67 | 5.49 | 118.54 | — | — | — | — |
| Net Debt / EBITDA | 3.31 | 3.31 | 3.80 | 3.63 | 3.80 | 2.96 | 5.01 | 3.33 | 3.17 | 3.05 | 2.84 |
| Debt / FCF | — | 8.19 | 10.25 | 9.79 | 29.06 | 5.01 | 5.79 | 7.16 | 5.93 | 7.08 | 8.50 |
| Interest Coverage | 5.09 | 5.09 | 3.71 | 4.64 | 4.20 | 4.57 | 2.76 | 4.76 | 4.35 | 3.60 | 3.45 |
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 | 2.26 | 2.26 | 2.20 | 2.12 | 1.70 | 2.08 | 2.54 | 2.55 | 2.35 | 2.04 | 2.40 |
| Quick Ratio | 0.54 | 0.54 | 0.45 | 0.44 | 0.29 | 0.77 | 1.10 | 0.46 | 0.43 | 0.42 | 0.54 |
| Cash Ratio | 0.26 | 0.26 | 0.18 | 0.21 | 0.11 | 0.60 | 0.91 | 0.16 | 0.16 | 0.11 | 0.18 |
| Asset Turnover | — | 1.29 | 1.33 | 1.37 | 1.48 | 1.36 | 1.21 | 1.85 | 1.87 | 1.85 | 1.85 |
| Inventory Turnover | 1.81 | 1.81 | 1.76 | 1.88 | 2.01 | 2.20 | 2.21 | 2.06 | 2.11 | 2.12 | 2.19 |
| Days Sales Outstanding | — | 11.49 | 9.05 | 7.43 | 6.91 | 6.27 | 5.86 | 9.84 | 8.40 | 8.55 | 7.76 |
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 | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 13.2% | 11.6% | 10.5% | 20.2% | 13.2% | 12.5% | 11.4% | 15.2% | 11.3% | 8.0% | 5.8% |
| FCF Yield | 12.6% | 10.2% | 10.0% | 17.3% | 4.1% | 16.0% | 31.7% | 11.9% | 12.6% | 9.4% | 5.2% |
| Buyback Yield | 3.9% | 3.2% | 4.2% | 1.7% | 9.4% | 0.0% | 6.2% | 2.6% | 7.3% | 12.8% | 5.5% |
| Total Shareholder Yield | 3.9% | 3.2% | 4.2% | 1.7% | 9.4% | 0.0% | 6.2% | 2.6% | 7.3% | 12.8% | 5.5% |
| Shares Outstanding | — | $104M | $107M | $109M | $110M | $114M | $115M | $120M | $124M | $138M | $149M |
Professional brand leakage risk
Based on current market data, SBH trades at a forward P/E of 7.02x, which represents a significant valuation discount compared to specialty retail peers like Ulta Beauty, suggesting that investors are pricing in long-term structural headwinds rather than immediate cyclical earnings volatility or near-term growth prospects.
The low PEG ratio of 0.55 indicates that the market is heavily discounting the company's future earnings potential, likely due to concerns regarding the sustainability of its professional distribution moat. This valuation suggests that the market views SBH as a value trap rather than a growth entity, requiring evidence of successful digital transformation to justify a re-rating.
As reported in financial statements, SBH's ROIC has remained consistently low, hovering between 2.1% and 3.6% over the last ten quarters, which indicates that the company is struggling to generate returns on invested capital that meaningfully exceed its cost of capital in the current retail environment.
The persistent gap between ROIC and historical cost of capital suggests that the company's store-based business model is capital-intensive and lacks the high-margin scalability of pure-play digital competitors. Investors should monitor whether the ongoing store rationalization program can eventually drive a sustained expansion in capital efficiency or if the asset base remains structurally burdened.
According to recent quarterly filings, the company's cash conversion cycle remains elevated, driven by a DIO that has consistently exceeded 200 days, which highlights the significant working capital drag inherent in maintaining a vast, fragmented physical store network across both retail and professional distribution channels.
The high inventory turnover period suggests that the company is carrying substantial stock levels, which increases the risk of obsolescence and markdowns in a fast-moving beauty market. Improving this metric is critical for unlocking cash flow, as the current reliance on inventory management for liquidity leaves the company vulnerable to shifts in consumer demand.
Based on reported figures, SBH has successfully reduced its debt-to-equity ratio from 3.06 in 2024Q1 to 1.81 in 2026Q2, signaling a deliberate and consistent effort to strengthen the balance sheet despite a challenging and highly competitive retail environment for specialty beauty products.
This reduction in leverage is a positive development that likely lowers interest expense and provides the company with greater financial flexibility to navigate potential industry disruptions. However, the high debt-to-EBITDA ratio of 15.50 warrants further investigation, as it suggests that despite the lower equity-based leverage, the company's earnings power remains insufficient to service its debt load rapidly.
The market frequently misapplies the 'comparable store sales' metric to SBH, which obscures the underlying strategic shift toward a smaller, more efficient store footprint and the growing importance of digital channels in the professional beauty segment.
Focusing solely on same-store sales growth ignores the intentional closure of underperforming units, which is a necessary step to improve overall operating margins and ROIC. Analysts should instead prioritize total segment revenue growth and digital penetration rates to better understand the company's true competitive trajectory.
Includes 30+ ratios · 22 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 SBH stock.
Sally Beauty Holdings, Inc.'s current P/E ratio is 7.6x. The historical average is 13.8x. This places it at the 16th percentile of its historical range.
Sally Beauty Holdings, Inc.'s current EV/EBITDA is 6.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 8.5x.
Sally Beauty Holdings, Inc.'s return on equity (ROE) is 27.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 44.7%.
Based on historical data, Sally Beauty Holdings, Inc. is trading at a P/E of 7.6x. This is at the 16th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Sally Beauty Holdings, Inc. has 51.6% gross margin and 8.9% operating margin.
Sally Beauty Holdings, Inc.'s Debt/EBITDA ratio is 3.7x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.