Latest Ratios: P/E Ratio 7.4x · EV/EBITDA 6.7x · ROE 32.3%. (1996–2025 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 | $5.1B | $5.6B | $6.1B | $4.5B | $4.3B | $6.3B | $4.8B | $3.8B | $3.7B | $5.0B | $4.8B |
| Enterprise Value | $6.7B | $7.2B | $7.8B | $5.6B | $5.0B | $7.9B | $5.5B | $2.9B | $5.4B | $6.7B | $5.0B |
| P/E Ratio → | 7.38 | 7.82 | 10.29 | 7.93 | 9.43 | 5.45 | 5.51 | 6.65 | 7.77 | 18.23 | 20.79 |
| P/S Ratio | 1.63 | 1.80 | 2.03 | 1.58 | 1.83 | 2.61 | 2.05 | 1.61 | 1.94 | 3.45 | 4.16 |
| P/B Ratio | 2.16 | 2.29 | 2.81 | 2.38 | 2.51 | 2.93 | 1.87 | 1.16 | 1.23 | 2.00 | 2.03 |
| P/FCF | 8.79 | 9.74 | — | — | 869.58 | — | 2.23 | — | — | — | — |
| P/OCF | 8.79 | 9.74 | — | — | 869.58 | — | — | — | — | — | — |
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 | — | 2.32 | 2.61 | 1.96 | 2.10 | 3.27 | 2.36 | 1.23 | 2.86 | 4.67 | 4.38 |
| EV / EBITDA | 6.71 | 7.26 | 9.56 | 6.98 | 7.65 | 5.07 | 4.73 | 3.85 | 9.38 | 13.32 | 11.84 |
| EV / EBIT | 6.73 | 7.28 | 9.77 | 7.13 | 7.86 | 5.12 | 4.79 | 3.92 | 9.62 | 13.63 | 12.11 |
| EV / FCF | — | 12.55 | — | — | 993.58 | — | 2.58 | — | — | — | — |
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 | 53.1% | 53.1% | 48.2% | 51.6% | 50.3% | 85.5% | 72.9% | 55.4% | 59.3% | 65.6% | 69.9% |
| Operating Margin | 31.9% | 31.9% | 26.7% | 27.4% | 26.7% | 63.9% | 49.3% | 31.3% | 29.7% | 34.3% | 36.2% |
| Net Profit Margin | 24.0% | 24.0% | 20.4% | 20.5% | 19.8% | 48.2% | 37.6% | 24.3% | 25.9% | 20.1% | 21.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 32.3% | 32.3% | 30.1% | 32.2% | 24.2% | 49.3% | 30.0% | 18.4% | 17.9% | 12.0% | 11.3% |
| ROA | 2.5% | 2.5% | 2.1% | 2.0% | 1.6% | 3.9% | 2.8% | 1.9% | 2.0% | 1.4% | 1.5% |
| ROIC | 8.8% | 8.8% | 7.6% | 8.3% | 6.3% | 14.6% | 11.0% | 7.3% | 6.5% | 7.2% | 8.1% |
| ROCE | 11.5% | 11.5% | 9.7% | 10.5% | 8.0% | 18.7% | 14.4% | 9.7% | 8.3% | 9.0% | 10.6% |
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 | 2.39 | 2.39 | 2.98 | 2.78 | 3.03 | 2.76 | 2.02 | 1.40 | 1.44 | 1.32 | 0.92 |
| Debt / EBITDA | 5.89 | 5.89 | 7.89 | 6.57 | 8.08 | 3.81 | 4.44 | 6.12 | 7.47 | 6.52 | 5.11 |
| Net Debt / Equity | — | 0.66 | 0.81 | 0.57 | 0.36 | 0.74 | 0.29 | -0.28 | 0.58 | 0.70 | 0.11 |
| Net Debt / EBITDA | 1.63 | 1.63 | 2.13 | 1.35 | 0.96 | 1.03 | 0.63 | -1.21 | 3.01 | 3.46 | 0.59 |
| Debt / FCF | — | 2.81 | — | — | 124.00 | — | 0.34 | — | — | — | — |
| Interest Coverage | 0.88 | 0.88 | 0.70 | 0.76 | 1.16 | 4.03 | 2.13 | 1.05 | 1.07 | 1.60 | 2.23 |
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 | 0.28 | 0.28 | 0.40 | 0.38 | 0.40 | 0.40 | 0.36 | 0.31 | 0.21 | 0.19 | 0.23 |
| Quick Ratio | 0.28 | 0.28 | 0.40 | 0.38 | 0.40 | 0.40 | 0.36 | 0.31 | 0.21 | 0.19 | 0.23 |
| Cash Ratio | 0.20 | 0.20 | 0.22 | 0.19 | 0.22 | 0.21 | 0.20 | 0.22 | 0.13 | 0.10 | 0.14 |
| Asset Turnover | — | 0.10 | 0.10 | 0.10 | 0.08 | 0.08 | 0.08 | 0.07 | 0.07 | 0.07 | 0.06 |
| 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 | 13.2% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 94.0% | 94.0% | 16.3% | 17.4% | 24.1% | 5.2% | 5.3% | 8.8% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 13.6% | 12.8% | 9.7% | 12.6% | 10.6% | 18.4% | 18.2% | 15.0% | 12.9% | 5.5% | 4.8% |
| FCF Yield | 11.4% | 10.3% | — | — | 0.1% | — | 44.8% | — | — | — | — |
| Buyback Yield | 7.3% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 20.5% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $207M | $220M | $234M | $262M | $320M | $387M | $431M | $440M | $439M | $433M |
Regulatory and funding volatility
According to current market data, SLM trades at a trailing P/E of 7.36 and a P/B of 2.15, suggesting that investors are pricing in significant regulatory and credit risk despite the company's consistent dividend yield of 13.3% relative to its historical valuation averages.
The low P/E multiple relative to broader financial services peers appears to reflect market skepticism regarding the sustainability of earnings in a volatile interest rate environment. Investors should monitor whether the current PEG ratio of 0.82 signals an undervalued growth opportunity or a value trap driven by the market's anticipation of future credit loss provisions.
Based on reported quarterly figures, SLM's ROIC has fluctuated wildly from a peak of 4.1% in 2024Q1 to a negative 0.6% in 2024Q3, indicating that the firm struggles to consistently generate returns above its cost of capital across different academic and economic cycles.
The volatility in ROIC suggests that the company's profitability is highly sensitive to the timing of loan originations and the subsequent provisioning requirements under CECL. This inconsistency warrants further investigation into whether management's capital allocation strategy is effectively creating long-term shareholder value or merely reacting to short-term liquidity needs.
As reported in recent financial statements, SLM's DSO has remained elevated, oscillating between 150 and 216 days over the last ten quarters, which highlights the inherent friction in the student loan collection process and the company's reliance on long-dated asset performance.
The lack of a stable trend in asset turnover suggests that the company's operational efficiency is heavily influenced by external factors such as FAFSA rollout delays rather than internal process improvements. Investors should be cautious of interpreting these metrics as indicators of operational leverage, as the underlying loan servicing requirements appear to be largely fixed.
Based on the provided balance sheet data, SLM's debt-to-equity ratio shifted dramatically from 2.39 in 2025Q4 to 0.20 in 2026Q1, a divergence that suggests either a fundamental change in funding strategy or a significant reclassification of liabilities that requires further clarification.
This sudden deleveraging appears inconsistent with the company's historical reliance on securitization markets for liquidity. Analysts should monitor whether this shift represents a sustainable reduction in financial risk or a temporary accounting anomaly that masks the true extent of the firm's leverage and interest coverage obligations.
As indicated by the company's unique business model, the P/B ratio is frequently misapplied to SLM, as it fails to account for the significant off-balance-sheet nature of securitized loan portfolios and the impact of CECL accounting on book value.
Investors should prioritize tangible book value adjustments and gain-on-sale sensitivity analysis over standard P/B multiples to better understand the firm's true equity base. Relying on traditional banking valuation metrics likely obscures the risks associated with the company's reliance on secondary market liquidity and the long-term performance of its student loan assets.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying SLM stock.
SLM Corporation's current P/E ratio is 7.4x. The historical average is 8.3x. This places it at the 54th percentile of its historical range.
SLM Corporation'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 30.2x.
SLM Corporation's return on equity (ROE) is 32.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 26.8%.
Based on historical data, SLM Corporation is trading at a P/E of 7.4x. This is at the 54th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
SLM Corporation's current dividend yield is 13.24% with a payout ratio of 94.0%.
SLM Corporation has 53.1% gross margin and 31.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
SLM Corporation's Debt/EBITDA ratio is 5.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.