Latest Ratios: P/E Ratio 14.2x · EV/EBITDA 6.8x · ROE 14.4%. (1998–2026 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 | $3.8B | $3.5B | $3.3B | $3.1B | $2.5B | $3.3B | $3.6B | $1.6B | $2.6B | $3.0B | $1.8B |
| Enterprise Value | $3.2B | $3.0B | $2.8B | $2.8B | $2.2B | $2.9B | $3.4B | $1.5B | $2.2B | $2.7B | $1.7B |
| P/E Ratio → | 14.17 | 12.73 | 13.41 | 18.80 | 12.16 | 10.27 | 32.48 | 15.17 | 25.69 | 22.46 | 22.04 |
| P/S Ratio | 1.28 | 1.19 | 1.18 | 1.12 | 0.87 | 1.24 | 1.99 | 0.80 | 1.34 | 1.65 | 1.14 |
| P/B Ratio | 1.96 | 1.76 | 1.74 | 1.80 | 1.51 | 2.12 | 2.65 | 1.29 | 2.12 | 2.47 | 1.70 |
| P/FCF | 11.60 | 10.76 | 10.79 | 13.65 | 9.11 | 7.25 | 16.46 | 8.10 | 12.43 | 16.98 | 32.93 |
| P/OCF | 9.08 | 8.42 | 8.94 | 11.00 | 7.24 | 6.54 | 14.42 | 6.68 | 10.19 | 13.72 | 17.38 |
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 | — | 1.01 | 1.02 | 0.99 | 0.77 | 1.10 | 1.85 | 0.77 | 1.13 | 1.50 | 1.04 |
| EV / EBITDA | 6.82 | 6.24 | 6.58 | 7.68 | 5.18 | 5.43 | 15.50 | 6.57 | 11.93 | 10.59 | 10.08 |
| EV / EBIT | 8.62 | 7.89 | 7.72 | 11.34 | 6.88 | 6.33 | 17.48 | 8.78 | 14.77 | 12.38 | 13.34 |
| EV / FCF | — | 9.12 | 9.34 | 12.07 | 8.09 | 6.41 | 15.31 | 7.80 | 10.53 | 15.37 | 30.17 |
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 | 25.6% | 25.6% | 88.6% | 88.1% | 90.7% | 95.0% | 24.2% | 93.4% | 93.8% | 93.1% | 92.1% |
| Operating Margin | 12.8% | 12.8% | 12.6% | 10.1% | 12.5% | 17.8% | 8.6% | 8.9% | 7.1% | 11.5% | 7.4% |
| Net Profit Margin | 9.4% | 9.4% | 8.9% | 6.1% | 7.3% | 12.3% | 6.3% | 5.3% | 5.2% | 7.4% | 5.2% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.4% | 14.4% | 13.6% | 10.0% | 13.1% | 22.4% | 8.8% | 8.5% | 8.3% | 11.6% | 7.9% |
| ROA | 7.0% | 7.0% | 6.5% | 4.7% | 6.0% | 10.0% | 3.9% | 4.1% | 4.4% | 6.1% | 4.3% |
| ROIC | 19.5% | 19.5% | 18.6% | 15.3% | 21.2% | 30.9% | 10.2% | 13.2% | 11.9% | 16.7% | 9.8% |
| ROCE | 12.5% | 12.5% | 12.3% | 10.5% | 14.1% | 19.6% | 7.0% | 9.0% | 8.0% | 12.5% | 7.9% |
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 | 0.28 | 0.28 | 0.30 | 0.33 | 0.34 | 0.38 | 0.44 | 0.51 | 0.18 | 0.19 | 0.24 |
| Debt / EBITDA | 1.19 | 1.19 | 1.33 | 1.61 | 1.32 | 1.12 | 2.75 | 2.72 | 1.19 | 0.92 | 1.53 |
| Net Debt / Equity | — | -0.27 | -0.23 | -0.21 | -0.17 | -0.25 | -0.18 | -0.05 | -0.32 | -0.23 | -0.14 |
| Net Debt / EBITDA | -1.12 | -1.12 | -1.02 | -1.00 | -0.65 | -0.72 | -1.16 | -0.26 | -2.15 | -1.11 | -0.92 |
| Debt / FCF | — | -1.64 | -1.45 | -1.58 | -1.02 | -0.85 | -1.14 | -0.31 | -1.90 | -1.61 | -2.77 |
| Interest Coverage | 18.74 | 18.74 | 17.94 | 11.62 | 12.43 | 18.12 | 6.59 | 7.80 | 8.95 | 15.90 | 8.67 |
Net cash position: cash ($1.1B) exceeds total debt ($563M)
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 | 1.94 | 1.94 | 1.83 | 1.79 | 1.68 | 1.79 | 1.98 | 1.98 | 2.06 | 1.82 | 1.84 |
| Quick Ratio | 1.94 | 1.94 | 1.83 | 1.79 | 1.68 | 1.79 | 1.98 | 1.98 | 2.06 | 1.82 | 1.84 |
| Cash Ratio | 1.16 | 1.16 | 1.09 | 1.05 | 0.91 | 1.05 | 1.22 | 1.17 | 1.15 | 0.96 | 0.91 |
| Asset Turnover | — | 0.72 | 0.72 | 0.76 | 0.80 | 0.76 | 0.60 | 0.72 | 0.85 | 0.80 | 0.79 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 71.21 | 79.80 | 75.95 | 81.20 | 85.90 | 98.02 | 80.47 | 79.81 | 83.07 | 84.83 |
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 | 2.7% | 3.0% | 2.6% | 1.7% | 1.3% | 0.8% | 0.6% | 1.4% | 0.9% | 0.8% | 1.3% |
| Payout Ratio | 37.7% | 37.7% | 34.0% | 32.2% | 15.7% | 8.2% | 19.7% | 21.7% | 22.9% | 17.2% | 27.7% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.1% | 7.9% | 7.5% | 5.3% | 8.2% | 9.7% | 3.1% | 6.6% | 3.9% | 4.5% | 4.5% |
| FCF Yield | 8.6% | 9.3% | 9.3% | 7.3% | 11.0% | 13.8% | 6.1% | 12.3% | 8.0% | 5.9% | 3.0% |
| Buyback Yield | 3.1% | 3.3% | 2.7% | 1.7% | 3.8% | 2.9% | 0.8% | 5.9% | 1.4% | 1.1% | 1.6% |
| Total Shareholder Yield | 5.8% | 6.3% | 5.3% | 3.4% | 5.2% | 3.8% | 1.5% | 7.3% | 2.3% | 1.9% | 2.8% |
| Shares Outstanding | — | $53M | $53M | $51M | $52M | $53M | $53M | $55M | $56M | $56M | $57M |
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying KFY stock.
Korn Ferry's current P/E ratio is 14.2x. The historical average is 28.8x. This places it at the 25th percentile of its historical range.
Korn Ferry's current EV/EBITDA is 6.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.1x.
Korn Ferry's return on equity (ROE) is 14.4%. The historical average is 5.5%.
Based on historical data, Korn Ferry is trading at a P/E of 14.2x. This is at the 25th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Korn Ferry's current dividend yield is 2.69% with a payout ratio of 37.7%.
Korn Ferry has 25.6% gross margin and 12.8% operating margin. Operating margin between 10-20% is typical for established companies.
Korn Ferry's Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Severe Cost Structure Data Anomalies
Metrics are mathematically derived from official filings.
Discounted Valuation Reflects Muted Growth
Korn Ferry trades at a significant discount to peers, with a forward P/E of 14.56x and PEG of 0.74, according to current market data, suggesting the market is pricing in limited earnings growth or is concerned about underlying business volatility.
The valuation multiples, particularly the EV/EBITDA of 7.21x, place Korn Ferry well below sector averages, which may indicate investor skepticism about the sustainability of recent revenue acceleration or reflect the negative sentiment surrounding the data anomalies in cost reporting. The low PEG ratio implies the market sees little room for multiple expansion relative to growth prospects, creating a potential value trap or a deep value opportunity if the company can demonstrate stable, positive momentum.
Operating Margin Stability Belies Cost Data Chaos
Despite erratic gross margins reported between -150.8% and 89.4% over the last ten quarters, as shown in the data, Korn Ferry's operating margin has remained remarkably stable between 11.1% and 14.5%, suggesting a core profitability engine that is obscured by non-operational or accounting distortions.
The stark divergence between the volatile gross margin and the stable operating margin implies that SG&A, the primary cost line, is managed with strict discipline relative to revenue, insulating the bottom line from the factors causing gross margin swings. This stability in operating and net margins (which hover around 9%) appears to be the most reliable indicator of the firm's true earning power, assuming the underlying operating income figures are not themselves distorted by the same issues affecting COGS.
Decent Returns on a Low-Asset Base
Korn Ferry generates a stable but modest ROIC between 3.7% and 5.2% over ten quarters, as per the reported figures, which, while positive, appears insufficient to significantly exceed its estimated cost of capital and create meaningful value.
The ROIC trend is stable rather than compounding, driven more by consistent operating margins than by improving asset turnover, which remains fixed at a low 0.19x to 0.20x. This low asset turnover is characteristic of the firm's service-based model, but the modest returns suggest the company's competitive advantages, while providing stability, do not translate into exceptional capital efficiency or pricing power.
Conservative Leverage Amplifies Safety
With a debt-to-equity ratio of 0.30 and interest coverage exceeding 23x in the latest quarter, according to financial statements, Korn Ferry's leverage profile is conservative, providing substantial financial flexibility and minimizing refinancing risk.
The consistently low leverage and strong interest coverage suggest the company's debt is not a constraint on strategy and positions it well to weather cyclical downturns or invest in growth. This financial strength is a structural advantage versus more leveraged peers, though it also implies the company is not aggressively using balance sheet capacity to boost returns on equity.
Valuation Discount vs. Profitable Peers
Korn Ferry trades at a notable discount on EV/EBITDA (7.2x) and P/E (14.9x) compared to peers like Robert Half (RHI) at 30.1x EV/EBITDA, as reported in peer data, while maintaining a stronger and more stable margin profile.
This valuation gap is significant given Korn Ferry's superior operating margin stability and healthier balance sheet versus RHI and HSII. The discount may reflect the market's concern over Korn Ferry's historical growth volatility, its exposure to cyclical hiring trends, or the data anomalies in its financial reporting, which could be interpreted as a governance or transparency risk.
The P/E Trap in a Cyclical Service
The most commonly misapplied ratio for Korn Ferry is likely the trailing P/E, which fails to account for the extreme cyclical volatility in its earnings and the severe data anomalies distorting reported profitability in certain periods.
Using the trailing P/E of 14.86x without adjusting for the cyclical nature of staffing revenues and the questionable gross margin data could lead to a misinterpretation of valuation. A more appropriate metric might be a normalized P/E based on average earnings over a full cycle, or an EV/EBITDA multiple that strips out the impact of non-cash items and the specific accounting distortions affecting reported net income, providing a clearer view of underlying cash flow generation.