Latest Ratios: P/E Ratio 20.9x · EV/EBITDA 12.7x · ROE 18.4%. (2013–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $9.1B | $9.8B | $11.1B | $8.7B | $5.9B | $6.0B | $4.6B | $3.4B | $3.0B | $3.0B | $2.3B |
| Enterprise Value | $8.4B | $9.1B | $10.6B | $8.4B | $5.6B | $5.4B | $3.9B | $3.2B | $2.7B | $2.8B | $2.0B |
| P/E Ratio → | 20.89 | 23.09 | 27.75 | 31.19 | 23.27 | 13.70 | 14.62 | 18.61 | 18.95 | 17.15 | 21.13 |
| P/S Ratio | 3.47 | 3.75 | 4.64 | 4.56 | 3.27 | 2.64 | 2.99 | 2.95 | 2.78 | 3.07 | 2.63 |
| P/B Ratio | 3.63 | 4.01 | 5.10 | 4.76 | 3.67 | 4.15 | 3.30 | 3.48 | 3.39 | 3.47 | 3.14 |
| P/FCF | 13.32 | 14.42 | 13.71 | 33.38 | 69.13 | 8.23 | 8.07 | 12.83 | 13.88 | 12.18 | 10.68 |
| P/OCF | 12.90 | 13.96 | 13.07 | 26.60 | 43.39 | 8.14 | 7.88 | 11.91 | 13.46 | 11.80 | 10.00 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.49 | 4.42 | 4.40 | 3.08 | 2.36 | 2.55 | 2.76 | 2.53 | 2.87 | 2.32 |
| EV / EBITDA | 12.68 | 13.81 | 19.45 | 21.54 | 13.94 | 8.10 | 9.20 | 12.98 | 11.74 | 12.43 | 10.62 |
| EV / EBIT | 13.55 | 16.24 | 18.97 | 21.13 | 14.79 | 8.74 | 9.54 | 13.96 | 12.51 | 12.89 | 11.13 |
| EV / FCF | — | 13.39 | 13.05 | 32.21 | 65.16 | 7.36 | 6.89 | 12.00 | 12.60 | 11.38 | 9.43 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 98.4% | 98.4% | 38.5% | 38.5% | 38.5% | 37.9% | 36.3% | 36.4% | 36.2% | 33.9% | 33.2% |
| Operating Margin | 23.6% | 23.6% | 21.0% | 19.0% | 18.9% | 27.0% | 26.8% | 19.8% | 20.2% | 22.3% | 20.9% |
| Net Profit Margin | 16.3% | 16.3% | 16.7% | 14.6% | 14.0% | 19.3% | 20.5% | 15.9% | 14.7% | 17.9% | 12.4% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 18.4% | 18.4% | 19.9% | 16.2% | 16.6% | 31.0% | 26.4% | 19.6% | 18.2% | 21.8% | 15.7% |
| ROA | 10.5% | 10.5% | 11.4% | 9.1% | 8.7% | 16.5% | 15.2% | 11.9% | 11.2% | 12.3% | 8.8% |
| ROIC | 16.7% | 16.7% | 15.5% | 12.8% | 14.1% | 28.7% | 22.7% | 16.9% | 18.6% | 19.7% | 18.3% |
| ROCE | 21.4% | 21.4% | 20.1% | 16.7% | 18.1% | 36.8% | 29.3% | 21.8% | 22.9% | 21.6% | 20.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.20 | 0.20 | 0.20 | 0.23 | 0.23 | 0.14 | 0.13 | 0.16 | 0.01 | 0.02 | 0.04 |
| Debt / EBITDA | 0.74 | 0.74 | 0.81 | 1.06 | 0.94 | 0.30 | 0.41 | 0.64 | 0.04 | 0.06 | 0.17 |
| Net Debt / Equity | — | -0.28 | -0.24 | -0.17 | -0.21 | -0.44 | -0.49 | -0.22 | -0.31 | -0.23 | -0.37 |
| Net Debt / EBITDA | -1.05 | -1.05 | -0.98 | -0.78 | -0.85 | -0.96 | -1.59 | -0.90 | -1.19 | -0.87 | -1.40 |
| Debt / FCF | — | -1.02 | -0.66 | -1.17 | -3.97 | -0.87 | -1.19 | -0.83 | -1.27 | -0.80 | -1.25 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($1.2B) exceeds total debt ($492M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.53 | 1.53 | 1.38 | 1.32 | 1.13 | 0.93 | 1.32 | 1.22 | 0.88 | 1.00 | 1.61 |
| Quick Ratio | 1.53 | 1.53 | 1.38 | 1.32 | 1.13 | 0.93 | 1.32 | 1.22 | 0.88 | 1.00 | 1.61 |
| Cash Ratio | 0.98 | 0.98 | 0.86 | 0.83 | 0.78 | 0.71 | 1.04 | 0.76 | 0.58 | 0.48 | 0.78 |
| Asset Turnover | — | 0.61 | 0.63 | 0.60 | 0.61 | 0.79 | 0.63 | 0.69 | 0.76 | 0.68 | 0.63 |
| 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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.0% | 1.8% | 1.5% | 1.7% | 2.4% | 1.9% | 2.0% | 2.4% | 2.2% | 1.8% | 2.4% |
| Payout Ratio | 40.9% | 40.9% | 41.3% | 53.0% | 55.2% | 26.2% | 29.4% | 43.9% | 42.1% | 30.2% | 51.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.8% | 4.3% | 3.6% | 3.2% | 4.3% | 7.3% | 6.8% | 5.4% | 5.3% | 5.8% | 4.7% |
| FCF Yield | 7.5% | 6.9% | 7.3% | 3.0% | 1.4% | 12.1% | 12.4% | 7.8% | 7.2% | 8.2% | 9.4% |
| Buyback Yield | 1.9% | 1.8% | 0.5% | 0.3% | 0.8% | 5.1% | 2.2% | 0.9% | 2.3% | 0.6% | 0.0% |
| Total Shareholder Yield | 3.9% | 3.6% | 2.0% | 2.0% | 3.2% | 7.0% | 4.3% | 3.2% | 4.5% | 2.4% | 2.4% |
| Shares Outstanding | — | $68M | $69M | $68M | $68M | $68M | $69M | $66M | $66M | $66M | $67M |
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying HLI stock.
Houlihan Lokey, Inc.'s current P/E ratio is 20.9x. The historical average is 21.1x. This places it at the 45th percentile of its historical range.
Houlihan Lokey, Inc.'s current EV/EBITDA is 12.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.2x.
Houlihan Lokey, Inc.'s return on equity (ROE) is 18.4%. The historical average is 17.3%.
Based on historical data, Houlihan Lokey, Inc. is trading at a P/E of 20.9x. This is at the 45th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Houlihan Lokey, Inc.'s current dividend yield is 1.96% with a payout ratio of 40.9%.
Houlihan Lokey, Inc. has 98.4% gross margin and 23.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Houlihan Lokey, Inc.'s Debt/EBITDA ratio is 0.7x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Advisory revenue concentration
Metrics are mathematically derived from official filings.
Premium Multiple, Cyclical Earnings
Trading at 3.44x book and 19.84x trailing earnings, HLI's valuation implies sustained high returns on tangible equity, yet its earnings are cyclical and deal-dependent, per reported figures.
The P/B of 3.44x is below peers like Evercore (5.70x) and Moelis (7.42x), suggesting the market applies a discount to HLI's earnings quality or growth prospects. The forward P/E of 16.02x implies the market expects earnings to normalize upward from the depressed trailing level, but this hinges on a rebound in advisory activity. Given the lumpy revenue stream, the multiple may be justified if the firm can maintain its ROE above 20% through the cycle.
ROE Volatility Masks Underlying Strength
ROE ranged from 3.2% to 5.7% over the last ten quarters, with a 0.64 equity-to-assets ratio, indicating a highly capitalized, fee-only model where returns are driven by deal flow, as per financial statements.
The DuPont decomposition shows that with 100% fee income and no NIM, profitability is entirely a function of asset utilization (revenue/assets) and leverage. The equity-to-assets ratio of 0.64 is exceptionally high, limiting leverage-driven ROE, but the firm's ROA of 1.9-3.3% is strong for a non-depository. The efficiency ratio swings (10.6% to 76.2%) reflect variable compensation tied to deal completions, which can distort quarterly profitability but suggests a scalable cost base.
Fee-Only Model, Efficiency Swings
With no net interest income, HLI's efficiency ratio is purely a function of compensation timing, swinging from 10.6% to 76.2% in 2026, based on quarterly disclosures, highlighting operating leverage.
The efficiency ratio's volatility is not a sign of operational inefficiency but rather the lumpy recognition of bonus accruals. In quarters with high deal completions, revenue spikes and the ratio compresses; in quarters with low completions, the ratio expands. This pattern suggests that the firm's cost base is largely variable, which is a positive for margin protection in downturns but makes quarterly comparisons less meaningful.
Fortress Balance Sheet, No Leverage
Equity-to-assets improved from 0.58 to 0.64 over ten quarters, with equity growing 27.8% to $2.3B, indicating a fortress capital position with ample capacity for capital return, per reported balance sheets.
The firm's capital ratios are not disclosed in the traditional CET1 framework, but the equity-to-assets ratio of 0.64 is far above any regulatory minimum, reflecting a conservative, unlevered business model. This capital strength supports the steady dividend growth (from $35.6M to $61M quarterly) and sporadic buybacks. The absence of debt on the balance sheet suggests that capital return is not constrained by leverage, but rather by the need to retain earnings for working capital and potential investments.
Provision Volatility Raises Questions
Loan loss provisions swung from $8M to $441M quarterly, a 55x variation, which appears to be a non-cash accounting artifact but warrants scrutiny, according to reported income statements.
The provision line is unusual for an advisory firm and may relate to contingent consideration or other non-loan items. The volatility does not appear to reflect credit losses, as the loan book is negligible, but it could signal earnings management or one-time charges. Investors should monitor the footnotes to understand the nature of these provisions, as they materially impact reported earnings and ROE.
P/E Misleads on Cyclicality
The P/E ratio is commonly misapplied to HLI because its earnings are highly cyclical and provision-driven, making trailing P/E unreliable; P/B and ROTCE are more stable valuation metrics, as per financial data.
The trailing P/E of 19.84x is distorted by the volatile provision line and deal timing, which can depress or inflate earnings in any given quarter. A more appropriate metric is P/B (3.44x) combined with a normalized ROTCE, which smooths out the cyclicality. Investors should also consider the firm's tangible book value growth, which has risen from $6.65 to $11.33 per share over ten quarters, indicating strong capital accumulation.