Latest Ratios: P/E Ratio 14.6x · EV/EBITDA 7.2x · ROE 7.7%. (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 | $1.8B | $1.8B | $2.3B | $2.2B | $1.9B | $1.4B | $2.2B | $3.5B | $1.7B | $1.0B | $874M |
| Enterprise Value | $1.8B | $1.8B | $2.2B | $2.3B | $1.9B | $1.5B | $2.3B | $3.2B | $1.4B | $850M | $748M |
| P/E Ratio → | 14.61 | 14.80 | 20.00 | 31.74 | 40.37 | 25.37 | 25.29 | 43.30 | — | 48.68 | 25.12 |
| P/S Ratio | 1.42 | 1.44 | 1.85 | 1.95 | 1.76 | 1.23 | 2.12 | 3.52 | 2.72 | 2.21 | 1.98 |
| P/B Ratio | 1.10 | 1.11 | 1.36 | 1.34 | 1.15 | 0.81 | 1.25 | 2.40 | 1.21 | 4.80 | 4.64 |
| P/FCF | 11.69 | 11.89 | 17.52 | 27.60 | 22.68 | 10.64 | 22.68 | 21.48 | 89.17 | 26.33 | 27.89 |
| P/OCF | 9.08 | 9.23 | 13.32 | 18.89 | 14.91 | 7.73 | 15.25 | 17.37 | 36.76 | 17.86 | 19.65 |
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 | — | 1.42 | 1.84 | 1.99 | 1.81 | 1.29 | 2.21 | 3.21 | 2.23 | 1.87 | 1.70 |
| EV / EBITDA | 7.23 | 7.35 | 11.22 | 14.79 | 14.38 | 8.22 | 10.41 | 14.84 | 44.44 | 11.98 | 9.93 |
| EV / EBIT | 9.02 | 10.14 | 14.26 | 19.96 | 26.02 | 13.18 | 16.78 | 24.14 | — | 15.03 | 13.78 |
| EV / FCF | — | 11.68 | 17.42 | 28.16 | 23.23 | 11.12 | 23.67 | 19.56 | 73.16 | 22.31 | 23.86 |
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 | 49.0% | 49.0% | 46.7% | 44.9% | 43.9% | 46.3% | 48.2% | 46.8% | 46.4% | 46.1% | 45.4% |
| Operating Margin | 15.5% | 15.5% | 12.8% | 8.4% | 6.6% | 6.5% | 10.6% | 11.1% | -3.6% | 11.5% | 13.0% |
| Net Profit Margin | 10.0% | 10.0% | 9.2% | 6.2% | 4.4% | 4.9% | 8.4% | 8.1% | -2.5% | 4.5% | 7.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.7% | 7.7% | 6.8% | 4.2% | 2.8% | 3.2% | 5.4% | 5.6% | -1.9% | 10.4% | 21.0% |
| ROA | 6.2% | 6.2% | 5.4% | 3.3% | 2.1% | 2.4% | 4.2% | 4.7% | -1.6% | 6.6% | 12.7% |
| ROIC | 9.0% | 9.0% | 7.0% | 4.2% | 3.1% | 3.1% | 5.5% | 7.3% | -2.9% | 66.4% | 85.4% |
| ROCE | 10.7% | 10.7% | 8.3% | 4.9% | 3.5% | 3.5% | 5.9% | 7.0% | -2.5% | 21.3% | 26.7% |
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 | 0.07 | 0.07 | 0.08 | 0.13 | 0.16 | 0.19 | 0.16 | 0.07 | 0.00 | 0.01 | 0.01 |
| Debt / EBITDA | 0.45 | 0.45 | 0.63 | 1.40 | 1.94 | 1.87 | 1.29 | 0.49 | 0.07 | 0.04 | 0.04 |
| Net Debt / Equity | — | -0.02 | -0.01 | 0.03 | 0.03 | 0.04 | 0.05 | -0.21 | -0.22 | -0.73 | -0.67 |
| Net Debt / EBITDA | -0.13 | -0.13 | -0.06 | 0.29 | 0.34 | 0.35 | 0.44 | -1.46 | -9.73 | -2.16 | -1.68 |
| Debt / FCF | — | -0.21 | -0.09 | 0.56 | 0.55 | 0.48 | 0.99 | -1.92 | -16.02 | -4.02 | -4.04 |
| Interest Coverage | — | — | — | — | — | — | 96.81 | — | — | 88.12 | 84.52 |
Net cash position: cash ($141M) exceeds total debt ($109M)
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 | 1.27 | 1.27 | 1.41 | 1.57 | 1.57 | 1.88 | 1.43 | 3.34 | 3.36 | 2.76 | 2.68 |
| Quick Ratio | 1.27 | 1.27 | 1.41 | 1.57 | 1.57 | 1.88 | 1.43 | 3.34 | 3.36 | 2.76 | 2.68 |
| Cash Ratio | 0.68 | 0.68 | 0.85 | 0.99 | 1.06 | 1.41 | 0.98 | 2.90 | 2.79 | 2.26 | 2.16 |
| Asset Turnover | — | 0.62 | 0.60 | 0.53 | 0.49 | 0.49 | 0.45 | 0.56 | 0.38 | 1.42 | 1.48 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 22.51 | 22.78 | 24.52 | 21.57 | 16.64 | 18.33 | 18.86 | 32.05 | 18.55 | 16.99 |
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 | 3.2% | 3.1% | 2.6% | 2.7% | 3.2% | 4.2% | 2.6% | 1.3% | 1.6% | 1.1% | — |
| Payout Ratio | 45.4% | 45.4% | 52.3% | 84.2% | 126.9% | 107.2% | 64.9% | 57.5% | — | 55.4% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.8% | 6.8% | 5.0% | 3.2% | 2.5% | 3.9% | 4.0% | 2.3% | — | 2.1% | 4.0% |
| FCF Yield | 8.6% | 8.4% | 5.7% | 3.6% | 4.4% | 9.4% | 4.4% | 4.7% | 1.1% | 3.8% | 3.6% |
| Buyback Yield | 7.7% | 7.6% | 0.5% | 0.5% | 2.1% | 0.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 10.9% | 10.7% | 3.1% | 3.1% | 5.3% | 4.7% | 2.6% | 1.3% | 1.6% | 1.1% | 0.0% |
| Shares Outstanding | — | $23M | $24M | $24M | $24M | $24M | $23M | $22M | $15M | $11M | $11M |
Regulatory Title IV exposure
Based on current market data, STRA trades at a forward P/E of 10.97, which appears to discount the company's growth prospects relative to peers like Grand Canyon Education, suggesting investors remain skeptical of the long-term scalability of the current EdTech-heavy business model transition.
The current valuation multiple is significantly lower than the broader peer group, which may indicate that the market is applying a 'for-profit' discount due to regulatory risks. The PEG ratio of 1.93 suggests that the market is not pricing in aggressive earnings growth, reflecting a cautious outlook on the company's ability to expand margins through its B2B initiatives.
As reported in financial statements, STRA's ROIC has hovered between 1.6% and 2.5% over the last ten quarters, a performance that significantly lags behind industry peers like LOPE, which consistently demonstrates superior capital compounding through its more efficient, centralized online infrastructure.
The low ROIC suggests that the company's heavy investment in technology and marketing is not yet generating sufficient incremental returns on invested capital. This trend warrants further investigation into whether the high goodwill balance on the balance sheet is suppressing the return metrics or if the core business model requires excessive capital to maintain its current enrollment levels.
According to recent quarterly filings, STRA's asset turnover remains stagnant at approximately 0.15, indicating that the company's asset base is not being utilized with increasing efficiency to drive revenue growth compared to historical performance levels observed over the past two years.
The lack of improvement in asset turnover suggests that the company's investments in digital platforms have yet to yield the expected operational leverage. Investors should monitor the cash conversion cycle, as the volatility in DSO and the absence of consistent DIO data make it difficult to assess the true efficiency of the company's student-facing working capital management.
The P/E ratio is frequently misapplied to STRA because it fails to account for the significant non-cash stock-based compensation and the seasonal volatility inherent in academic term-based revenue recognition, which can artificially depress earnings and distort the company's true underlying cash-generating capacity.
Analysts should instead focus on EV/EBITDA or free cash flow yield to better understand the company's operational performance, as these metrics are less sensitive to the accounting nuances of the education sector. Relying solely on P/E may lead to an undervaluation of the company's B2B pivot, which is designed to create more stable, recurring revenue streams that are not fully captured by traditional earnings multiples.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying STRA stock.
Strategic Education, Inc.'s current P/E ratio is 14.6x. The historical average is 27.9x. This places it at the 7th percentile of its historical range.
Strategic Education, Inc.'s current EV/EBITDA is 7.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.7x.
Strategic Education, Inc.'s return on equity (ROE) is 7.7%. The historical average is 55.1%.
Based on historical data, Strategic Education, Inc. is trading at a P/E of 14.6x. This is at the 7th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Strategic Education, Inc.'s current dividend yield is 3.18% with a payout ratio of 45.4%.
Strategic Education, Inc. has 49.0% gross margin and 15.5% operating margin. Operating margin between 10-20% is typical for established companies.
Strategic Education, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.