Latest Ratios: P/E Ratio -89.1x · EV/EBITDA 7.2x · ROE -2.7%. (2003–2025 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 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.1B | $2.5B | $2.8B | $2.4B | $2.0B | $2.9B | — | — | — | — | — |
| Enterprise Value | $2.8B | $2.3B | $4.8B | $2.8B | $2.2B | $3.2B | — | — | — | — | — |
| P/E Ratio → | -89.10 | — | — | 63.73 | 30.23 | 173.09 | — | — | — | — | — |
| P/S Ratio | 1.94 | 1.60 | 3.24 | 3.17 | 2.44 | 4.09 | — | — | — | — | — |
| P/B Ratio | 2.35 | 1.92 | 2.13 | 2.67 | 1.75 | 2.57 | — | — | — | — | — |
| P/FCF | 21.70 | 17.86 | 105.11 | 17.93 | 10.71 | 23.31 | — | — | — | — | — |
| P/OCF | 15.67 | 12.90 | 98.70 | 14.88 | 9.28 | 19.58 | — | — | — | — | — |
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 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.45 | 5.55 | 3.64 | 2.66 | 4.46 | — | — | — | — | — |
| EV / EBITDA | 7.25 | 5.86 | 57.11 | 13.16 | 9.25 | 15.36 | — | — | — | — | — |
| EV / EBIT | 20.01 | 17.39 | — | 34.07 | 22.82 | 60.66 | — | — | — | — | — |
| EV / FCF | — | 16.22 | 180.19 | 20.55 | 11.68 | 25.41 | — | — | — | — | — |
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 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 29.9% | 29.9% | 47.8% | 49.4% | 49.5% | 50.6% | 48.8% | 49.1% | 63.8% | 66.6% | 64.4% |
| Operating Margin | 9.0% | 9.0% | -7.3% | 10.7% | 11.6% | 9.0% | -0.4% | 19.1% | 15.5% | 13.9% | 14.7% |
| Net Profit Margin | -2.2% | -2.2% | -12.8% | 4.9% | 8.0% | 2.3% | -16.5% | 7.1% | 4.5% | 16.4% | 8.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -2.7% | -2.7% | -10.0% | 3.7% | 5.7% | 1.7% | -24.0% | 8.1% | 3.7% | 16.7% | 9.8% |
| ROA | -0.9% | -0.9% | -4.0% | 2.1% | 3.4% | 0.9% | -7.3% | 4.1% | 2.9% | 11.9% | 6.4% |
| ROIC | 4.8% | 4.8% | -2.1% | 4.8% | 5.2% | 3.4% | -0.2% | 10.8% | 10.1% | 9.9% | 10.5% |
| ROCE | 3.9% | 3.9% | -2.4% | 4.9% | 5.3% | 3.7% | -0.2% | 12.3% | 11.7% | 11.8% | 13.4% |
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 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 1.65 | 0.63 | 0.51 | 0.49 | 0.99 | — | 0.04 | 0.04 | 0.28 |
| Debt / EBITDA | 0.02 | 0.02 | 25.82 | 2.69 | 2.45 | 2.69 | 5.83 | 4.58 | 0.20 | 0.21 | 1.26 |
| Net Debt / Equity | — | -0.18 | 1.52 | 0.39 | 0.16 | 0.23 | 0.80 | — | -0.02 | -0.05 | 0.23 |
| Net Debt / EBITDA | -0.59 | -0.59 | 23.80 | 1.68 | 0.76 | 1.27 | 4.70 | 3.90 | -0.12 | -0.28 | 1.06 |
| Debt / FCF | — | -1.64 | 75.08 | 2.62 | 0.97 | 2.10 | 18.39 | 8.39 | -0.63 | -0.47 | 2.80 |
| Interest Coverage | 0.78 | 0.78 | -1.21 | 2.47 | 10.25 | 2.08 | -0.04 | 1.79 | 28.54 | 21.01 | 18.57 |
Net cash position: cash ($240M) exceeds total debt ($9M)
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 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.44 | 2.44 | 1.90 | 4.39 | 5.62 | 4.26 | 2.84 | 2.37 | 2.00 | 1.40 | 1.45 |
| Quick Ratio | 2.44 | 2.44 | 1.90 | 4.39 | 5.62 | 4.26 | 2.84 | 2.37 | 2.00 | 1.40 | 1.45 |
| Cash Ratio | 1.04 | 1.04 | 0.67 | 2.51 | 3.91 | 2.69 | 1.57 | 1.04 | 0.51 | 0.40 | 0.23 |
| Asset Turnover | — | 0.41 | 0.22 | 0.47 | 0.43 | 0.38 | 0.29 | 0.88 | 0.69 | 0.68 | 0.75 |
| Inventory Turnover | — | — | — | — | — | — | — | 1947.02 | — | — | — |
| Days Sales Outstanding | — | 68.92 | 116.89 | 69.96 | 66.26 | 81.00 | 79.83 | 74.47 | 56.87 | 64.47 | 64.13 |
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 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.0% | 0.0% | 0.0% | 9.0% | — | 0.0% | — | — | — | — | — |
| Payout Ratio | — | — | — | 583.9% | — | 1.9% | — | — | — | 2.8% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2008 | FY 2007 | FY 2006 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | 1.6% | 3.3% | 0.6% | — | — | — | — | — |
| FCF Yield | 4.6% | 5.6% | 1.0% | 5.6% | 9.3% | 4.3% | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 2.4% | 3.1% | 0.0% | — | — | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 11.4% | 3.1% | 0.0% | — | — | — | — | — |
| Shares Outstanding | — | $173M | $149M | $146M | $152M | $153M | $153M | $153M | $59M | $59M | $58M |
Acquisition Integration and Amortization
As reported in recent financial statements, First Advantage trades at a forward P/E of 14.55, which appears to discount the company's aggressive inorganic growth strategy while simultaneously pricing in the persistent GAAP-basis profitability challenges stemming from heavy intangible asset amortization following the Sterling Check acquisition.
The current valuation suggests that investors are looking past the negative TTM P/E to focus on normalized earnings potential. However, the P/FCF of 21.70 indicates that the market is not yet fully convinced of the company's ability to convert its expanded scale into sustainable, high-quality free cash flow growth.
Based on reported figures, ROIC has remained suppressed, hovering near 2.4% in 2026Q1, which suggests that the massive influx of goodwill from recent acquisitions is significantly diluting the company's ability to generate meaningful returns on its invested capital base compared to historical performance.
The low ROIC reflects the structural reality of a roll-up strategy where the capital base expands faster than the immediate operational earnings. Investors should monitor whether the company can improve its asset turnover as it integrates these acquired entities, as current returns remain well below typical industry benchmarks.
According to recent SEC filings, the company's DSO has fluctuated around 68 days, indicating that the complexity of managing enterprise-level billing cycles across diverse jurisdictions remains a persistent drag on the firm's overall working capital efficiency and cash conversion cycle management.
The lack of consistent DIO data suggests that the company's inventory-light service model is functioning as intended, yet the variability in DSO warrants caution. This volatility may imply that the company is still refining its collection processes following the significant expansion of its client base through recent M&A.
As reported in financial statements, First Advantage has successfully reduced its debt-to-equity ratio to a negligible 0.01% by 2026Q1, signaling a rapid transition from acquisition-funded leverage to a highly conservative capital structure that provides significant optionality for future strategic maneuvers or capital returns.
This rapid deleveraging is a critical positive signal, as it removes the interest coverage risk that plagued the company during the peak of its acquisition cycle. The current balance sheet strength appears to provide a robust buffer against potential cyclical downturns in corporate hiring volumes.
Based on reported figures, the net margin of -2.21% is frequently misapplied by market participants as a proxy for operational failure, when in reality, it is heavily distorted by non-cash amortization charges related to the company's aggressive acquisition-led growth strategy.
Analysts should prioritize FCF margins or adjusted EBITDA to better assess the underlying earning power of the business. Relying solely on GAAP net income ignores the fact that the company remains fundamentally cash-generative, with FCF margins reaching 12.1% in 2026Q1 despite the reported bottom-line deficit.
Includes 30+ ratios · 13 years · Updated daily
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Quick answers to the most common questions about buying FA stock.
First Advantage Corporation's current P/E ratio is -89.1x. The historical average is 89.0x.
First Advantage Corporation'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 20.1x.
First Advantage Corporation's return on equity (ROE) is -2.7%. The historical average is 2.4%.
Based on historical data, First Advantage Corporation is trading at a P/E of -89.1x. Compare with industry peers and growth rates for a complete picture.
First Advantage Corporation's current dividend yield is 0.00%.
First Advantage Corporation has 29.9% gross margin and 9.0% operating margin.
First Advantage Corporation's Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.