Latest Ratios: P/E Ratio 45.7x · EV/EBITDA 15.6x · ROE 10.5%. (2012–2025 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 | $14.7B | $10.4B | $10.3B | $6.6B | $5.8B | $6.0B | $4.8B | $7.9B | $7.9B | $7.4B | $6.8B |
| Enterprise Value | $19.7B | $15.5B | $15.2B | $11.6B | $13.3B | $13.3B | $12.0B | $14.4B | $14.9B | $12.4B | $11.9B |
| P/E Ratio → | 45.71 | 31.97 | 39.12 | 9.75 | 30.03 | — | — | 17.67 | 13.87 | 19.68 | 23.66 |
| P/S Ratio | 0.79 | 0.56 | 0.59 | 0.41 | 0.43 | 0.50 | 0.37 | 0.49 | 0.50 | 0.51 | 0.47 |
| P/B Ratio | 4.72 | 3.30 | 3.38 | 1.77 | 1.92 | 2.21 | 1.75 | 2.38 | 2.59 | 2.99 | 3.15 |
| P/FCF | 32.27 | 22.94 | 34.47 | 21.57 | 17.69 | 24.24 | — | 15.89 | 18.33 | 14.20 | 21.28 |
| P/OCF | 15.92 | 11.32 | 14.19 | 8.58 | 8.40 | 9.20 | 27.21 | 8.06 | 7.51 | 7.00 | 8.47 |
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 | 0.87 | 0.72 | 0.97 | 1.10 | 0.93 | 0.89 | 0.94 | 0.85 | 0.83 |
| EV / EBITDA | 15.57 | 12.23 | 13.31 | 11.20 | 16.34 | 17.98 | 36.30 | 9.68 | 10.53 | 9.47 | 9.62 |
| EV / EBIT | 24.94 | 20.08 | 20.16 | 11.24 | 30.76 | 47.51 | — | 15.80 | 18.06 | 15.38 | 16.01 |
| EV / FCF | — | 34.13 | 50.83 | 38.00 | 40.30 | 53.53 | — | 28.78 | 34.71 | 23.88 | 37.22 |
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 | 5.8% | 5.8% | 8.2% | 8.1% | 7.8% | 9.0% | 6.5% | 10.4% | 11.3% | 11.0% | 10.6% |
| Operating Margin | 4.3% | 4.3% | 4.1% | 3.9% | 3.0% | 1.6% | -2.1% | 5.5% | 5.2% | 5.5% | 5.2% |
| Net Profit Margin | 1.8% | 1.8% | 1.5% | 4.2% | 1.4% | -0.8% | -3.6% | 2.8% | 3.6% | 2.6% | 2.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.5% | 10.5% | 7.8% | 19.9% | 6.7% | -3.3% | -15.2% | 14.1% | 20.6% | 16.1% | 14.2% |
| ROA | 2.5% | 2.5% | 1.8% | 4.2% | 1.3% | -0.6% | -3.1% | 3.3% | 4.6% | 3.5% | 2.8% |
| ROIC | 7.3% | 7.3% | 6.4% | 4.9% | 3.0% | 1.4% | -2.0% | 6.7% | 7.0% | 8.1% | 7.8% |
| ROCE | 8.7% | 8.7% | 7.0% | 5.3% | 3.6% | 1.5% | -2.2% | 8.0% | 8.2% | 9.4% | 9.1% |
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 | 1.81 | 1.81 | 1.83 | 1.86 | 2.56 | 2.87 | 3.53 | 2.01 | 2.38 | 2.13 | 2.43 |
| Debt / EBITDA | 4.51 | 4.51 | 4.87 | 6.70 | 9.57 | 10.56 | 29.34 | 4.50 | 5.12 | 4.02 | 4.24 |
| Net Debt / Equity | — | 1.61 | 1.61 | 1.35 | 2.45 | 2.67 | 2.62 | 1.93 | 2.31 | 2.04 | 2.36 |
| Net Debt / EBITDA | 4.01 | 4.01 | 4.29 | 4.84 | 9.17 | 9.84 | 21.75 | 4.34 | 4.97 | 3.84 | 4.12 |
| Debt / FCF | — | 11.18 | 16.36 | 16.43 | 22.61 | 29.29 | — | 12.90 | 16.38 | 9.68 | 15.95 |
| Interest Coverage | 2.12 | 2.12 | 1.94 | 2.21 | 1.12 | 0.68 | -0.66 | 2.45 | 2.34 | 2.82 | 2.37 |
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 | 0.99 | 0.99 | 0.81 | 1.04 | 1.00 | 1.01 | 1.99 | 0.98 | 1.17 | 1.12 | 1.14 |
| Quick Ratio | 0.88 | 0.88 | 0.72 | 0.96 | 0.83 | 0.87 | 1.81 | 0.83 | 0.87 | 0.86 | 0.87 |
| Cash Ratio | 0.18 | 0.18 | 0.17 | 0.41 | 0.10 | 0.19 | 1.07 | 0.09 | 0.09 | 0.10 | 0.07 |
| Asset Turnover | — | 1.39 | 1.37 | 0.95 | 0.91 | 0.84 | 0.82 | 1.18 | 1.15 | 1.33 | 1.36 |
| Inventory Turnover | 41.64 | 41.64 | 41.22 | 36.60 | 22.84 | 26.67 | 27.48 | 35.33 | 19.31 | 21.28 | 21.95 |
| Days Sales Outstanding | — | 44.12 | 44.07 | 44.96 | 57.28 | 52.76 | 40.72 | 40.64 | 41.39 | 40.39 | 37.38 |
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 | 0.7% | 1.1% | 1.0% | 1.7% | 1.9% | 1.9% | 2.3% | 1.4% | 1.3% | 1.4% | 1.3% |
| Payout Ratio | 34.0% | 34.0% | 38.1% | 17.0% | 58.2% | — | — | 24.2% | 18.2% | 27.0% | 32.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.2% | 3.1% | 2.6% | 10.3% | 3.3% | — | — | 5.7% | 7.2% | 5.1% | 4.2% |
| FCF Yield | 3.1% | 4.4% | 2.9% | 4.6% | 5.7% | 4.1% | — | 6.3% | 5.5% | 7.0% | 4.7% |
| Buyback Yield | 1.0% | 1.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.6% | 0.3% | 1.4% | 0.0% |
| Total Shareholder Yield | 1.7% | 2.4% | 1.0% | 1.7% | 1.9% | 1.9% | 2.4% | 2.0% | 1.6% | 2.7% | 1.4% |
| Shares Outstanding | — | $267M | $266M | $263M | $259M | $255M | $252M | $252M | $253M | $252M | $249M |
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying ARMK stock.
Aramark's current P/E ratio is 45.7x. The historical average is 23.8x. This places it at the 100th percentile of its historical range.
Aramark's current EV/EBITDA is 15.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.7x.
Aramark's return on equity (ROE) is 10.5%. The historical average is 9.6%.
Based on historical data, Aramark is trading at a P/E of 45.7x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Aramark's current dividend yield is 0.74% with a payout ratio of 34.0%.
Aramark has 5.8% gross margin and 4.3% operating margin.
Aramark's Debt/EBITDA ratio is 4.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Margin compression from cost inflation
Metrics are mathematically derived from official filings.
Thin Margins Mask Underlying Stability
Gross margin rebounded to 8.5% in Q3 2026 from 6.0% in Q1 2026, but remains below the 9.0% peak in Q4 2024, as per financial statements, indicating incomplete recovery.
The 8.5% gross margin in Q3 2026, while improved, still trails the 9.0% seen in Q4 2024, suggesting that input cost inflation and contract mix shifts continue to pressure the company's pricing power. Operating margin of 4.3% has remained relatively stable over the past year, but the thin spread between gross and operating margins implies that administrative and logistical costs consume a significant portion of gross profit. This stability may indicate that management has been able to offset some cost pressures through efficiency gains, but the narrow absolute margins leave little room for error if inflation accelerates.
Return on Capital Remains Subdued
ROIC has hovered between 1.4% and 2.6% over the past ten quarters, with Q3 2026 at 2.6%, as reported in financial statements, suggesting limited value creation relative to invested capital.
Despite a recent uptick, ROIC of 2.6% in Q3 2026 remains well below the cost of capital, indicating that the company is not generating sufficient returns on its invested capital. The low ROIC is driven by both thin net margins (1.9%) and modest asset turnover (0.37x), reflecting the capital-intensive nature of client investments and the high-variable-cost structure. This suggests that while the company is growing, it is not yet compounding returns at a rate that would justify a premium valuation, and investors should monitor whether the shift toward P&L contracts can improve capital efficiency over time.
Working Capital Efficiency Shows Stability
Cash conversion cycle improved to 31 days in Q3 2026 from 26 days in Q4 2025, based on reported figures, reflecting stable DSO and DIO but a slight extension in DPO.
The cash conversion cycle of 31 days in Q3 2026 is slightly higher than the 26 days in Q4 2025, driven by a reduction in days payable outstanding from 27 to 23 days. This suggests that Aramark is paying suppliers more quickly, which may indicate improved supplier relationships but also reduces the company's ability to use supplier financing as a source of working capital. Asset turnover has remained relatively flat at 0.37x, indicating that the company is not generating significant additional revenue from its asset base, which is consistent with the high level of goodwill and client investments on the balance sheet.
Leverage Normalizes Post-Spin
Debt-to-equity plummeted to 0.11 in Q3 2026 from 2.14 in Q3 2025, as per financial statements, reflecting a dramatic deleveraging likely tied to the Vestis spin-off.
The sharp decline in debt-to-equity from 2.14 to 0.11, alongside a reduction in total debt from $6.8B to $373M, indicates a significant de-risking of the balance sheet. However, interest coverage of 2.70x in Q3 2026 remains modest, suggesting that while leverage has decreased, the company's earnings still provide a limited cushion for interest expenses. This deleveraging may provide financial flexibility for future investments or shareholder returns, but investors should monitor whether the company will re-lever to fund growth, which could reverse the recent improvements.
Liquidity Buffer Strengthens
Current ratio improved to 1.28 in Q3 2026 from 0.81 in Q4 2024, as reported in financial statements, indicating a stronger ability to cover short-term obligations.
The improvement in the current ratio from 0.81 to 1.28 over the past two years suggests that Aramark has built a more comfortable liquidity position, with current assets now exceeding current liabilities. The quick ratio of 1.14 in Q3 2026 indicates that even without inventory, the company can cover its short-term obligations, which is reassuring given the thin margins. This improved liquidity may provide a buffer against seasonal working capital swings, but the company's reliance on client investments and the cyclicality of its segments could still pose stress in a downturn.
Misapplied Metric: EV/EBITDA
EV/EBITDA of 16.55x may overstate Aramark's valuation because EBITDA excludes the significant client investments that are capitalized and amortized, as per reported figures.
Aramark's EV/EBITDA multiple of 16.55x appears elevated relative to peers like ABM (10.25x), but this comparison is misleading because Aramark's EBITDA does not fully capture the cash outlays for client investments, which are capitalized and amortized over contract lives. These investments are essential to winning and retaining contracts, and they reduce free cash flow, as evidenced by the volatile FCF margin that swung from -18.7% in Q1 2026 to 20.9% in Q4 2025. A more appropriate metric would be EV/EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) or EV/Operating Cash Flow, which better reflects the true cash-generating capacity of the business.