Latest Ratios: P/E Ratio 50.4x · EV/EBITDA 129.7x · ROE 1.3%. (2008–2025 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 | $667M | $1.1B | $1.4B | $1.6B | $1.4B | $1.5B | $1.3B | $1.4B | $1.1B | $1.1B | $1.0B |
| Enterprise Value | $2.3B | $2.7B | $3.2B | $3.3B | $3.3B | $3.4B | $3.0B | $3.3B | $2.4B | $2.0B | $1.7B |
| P/E Ratio → | 50.43 | 65.79 | 10.93 | 10.26 | 16.72 | 7.17 | 18.93 | 11.26 | 13.82 | 9.82 | 8.81 |
| P/S Ratio | 44.93 | 75.14 | 7.39 | 7.23 | 5.60 | 7.78 | 6.52 | 7.15 | 6.77 | 9.41 | 8.36 |
| P/B Ratio | 0.72 | 0.94 | 1.05 | 1.18 | 1.08 | 1.12 | 1.01 | 1.08 | 0.48 | 0.61 | 0.65 |
| P/FCF | 1.76 | 2.94 | 33.99 | 20.67 | 20.36 | 29.21 | 12.14 | 20.74 | — | — | 16.98 |
| P/OCF | 1.76 | 2.94 | 33.99 | 20.67 | 20.36 | 29.21 | 12.14 | 20.74 | — | — | 16.98 |
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 | — | 182.29 | 16.48 | 15.13 | 13.09 | 17.31 | 15.48 | 16.96 | 14.87 | 16.31 | 13.65 |
| EV / EBITDA | 129.70 | 155.47 | 12.56 | 12.51 | 39.81 | 11.97 | 48.80 | 29.09 | 25.82 | 17.96 | 15.09 |
| EV / EBIT | 129.70 | 155.47 | 12.56 | 12.51 | 39.81 | 11.97 | 48.80 | 29.09 | 33.67 | 17.96 | 15.09 |
| EV / FCF | — | 7.14 | 75.81 | 43.24 | 47.60 | 64.99 | 28.83 | 49.20 | — | — | 27.73 |
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 | 10.7% | 10.7% | 75.0% | 75.5% | 78.1% | 72.4% | 21.0% | 39.3% | 34.2% | 69.6% | 74.7% |
| Operating Margin | 12.6% | 12.6% | 76.9% | 76.8% | 50.8% | 105.0% | 22.5% | 40.6% | 32.8% | 69.5% | 73.5% |
| Net Profit Margin | 11.9% | 11.9% | 34.4% | 39.6% | 21.5% | 75.4% | 21.6% | 40.6% | 32.6% | 69.2% | 73.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.3% | 1.3% | 8.4% | 10.2% | 5.6% | 15.6% | 4.6% | 6.2% | 3.4% | 6.3% | 9.2% |
| ROA | 0.5% | 0.5% | 3.5% | 4.2% | 2.2% | 6.3% | 1.8% | 3.9% | 3.3% | 6.1% | 6.9% |
| ROIC | 0.4% | 0.4% | 6.0% | 6.1% | 4.0% | 6.7% | 1.5% | 2.4% | 1.7% | 3.3% | 4.3% |
| ROCE | 0.6% | 0.6% | 8.0% | 8.1% | 5.3% | 8.9% | 1.9% | 4.5% | 4.6% | 8.3% | 9.9% |
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 | 1.41 | 1.41 | 1.35 | 1.34 | 1.49 | 1.42 | 1.45 | 1.51 | 0.59 | 0.47 | 0.44 |
| Debt / EBITDA | 96.02 | 96.02 | 7.24 | 6.80 | 23.63 | 6.80 | 29.54 | 17.26 | 14.59 | 7.92 | 6.27 |
| Net Debt / Equity | — | 1.34 | 1.29 | 1.29 | 1.44 | 1.38 | 1.39 | 1.48 | 0.57 | 0.45 | 0.41 |
| Net Debt / EBITDA | 91.38 | 91.38 | 6.93 | 6.53 | 22.78 | 6.59 | 28.25 | 16.82 | 14.07 | 7.60 | 5.85 |
| Debt / FCF | — | 4.20 | 41.82 | 22.57 | 27.23 | 35.78 | 16.69 | 28.45 | — | — | 10.76 |
| Interest Coverage | 0.14 | 0.14 | 1.86 | 2.10 | 0.91 | 3.84 | 0.77 | 1.34 | 1.28 | 2.96 | 3.91 |
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 | 0.57 | 0.57 | 7.18 | 5.59 | 5.47 | 3.52 | 2.75 | 4.42 | 0.11 | 0.14 | 0.14 |
| Quick Ratio | 0.57 | 0.57 | 7.18 | 5.59 | 5.47 | 3.52 | 2.75 | 4.42 | 0.11 | 0.14 | 0.14 |
| Cash Ratio | 0.37 | 0.37 | 4.69 | 3.43 | 3.63 | 2.30 | 1.86 | 2.66 | 0.07 | 0.07 | 0.10 |
| Asset Turnover | — | 0.05 | 0.10 | 0.11 | 0.10 | 0.08 | 0.09 | 0.08 | 0.09 | 0.08 | 0.09 |
| 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 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 15.9% | 12.2% | 0.1% | 9.6% | 8.5% | 7.6% | 9.6% | 8.2% | 9.1% | 8.3% | 8.4% |
| Payout Ratio | 823.0% | 823.0% | 1.6% | — | — | — | — | — | 139.7% | 86.1% | 76.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.0% | 1.5% | 9.1% | 9.7% | 6.0% | 13.9% | 5.3% | 8.9% | 7.2% | 10.2% | 11.3% |
| FCF Yield | 56.8% | 34.0% | 2.9% | 4.8% | 4.9% | 3.4% | 8.2% | 4.8% | — | — | 5.9% |
| Buyback Yield | 7.8% | 4.7% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.3% |
| Total Shareholder Yield | 23.7% | 16.8% | 0.1% | 9.6% | 8.5% | 7.6% | 9.6% | 8.2% | 9.1% | 8.3% | 8.6% |
| Shares Outstanding | — | $121M | $127M | $123M | $115M | $110M | $110M | $100M | $89M | $84M | $73M |
Includes 30+ ratios · 18 years · Updated daily
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Quick answers to the most common questions about buying NMFC stock.
New Mountain Finance Corporation's current P/E ratio is 50.4x. The historical average is 17.1x. This places it at the 93th percentile of its historical range.
New Mountain Finance Corporation's current EV/EBITDA is 129.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 26.7x.
New Mountain Finance Corporation's return on equity (ROE) is 1.3%. The historical average is 13.1%.
Based on historical data, New Mountain Finance Corporation is trading at a P/E of 50.4x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
New Mountain Finance Corporation's current dividend yield is 15.87% with a payout ratio of 823.0%.
New Mountain Finance Corporation has 10.7% gross margin and 12.6% operating margin. Operating margin between 10-20% is typical for established companies.
New Mountain Finance Corporation's Debt/EBITDA ratio is 96.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
High leverage and negative non-interest income
Metrics are mathematically derived from official filings.
Discount to Book Masks Earnings Volatility
NMFC trades at 0.79x book value, a discount to peers like ARCC at 0.97x, yet its P/E of 55x reflects depressed earnings. According to recent filings, the market prices in recovery, but the discount suggests skepticism.
The P/B of 0.79x implies the market values NMFC's assets below their stated book value, likely due to concerns about credit quality and earnings sustainability. The forward P/E of 7.08x suggests the market expects a significant earnings rebound, but the trailing P/E of 55x indicates current earnings are exceptionally low. This disconnect highlights the market's uncertainty about the timing and magnitude of recovery, especially given the volatile non-interest income and provision reversals.
ROE Decomposition Reveals Thin Margins
ROE of 1.7% in Q2 2026 is far below the 2.5% seen in Q2 2024, as reported in NMFC's quarterly statements. The DuPont breakdown shows NIM of 1.5% and negative non-interest income, dragging overall profitability.
The DuPont analysis for NMFC shows that the modest NIM of 1.5% is insufficient to offset the negative contribution from non-interest income, which swung to -2.6% of assets in Q2 2026. This indicates that the core lending spread is not generating enough earnings to cover operating costs and credit losses. The efficiency ratio, which turned negative in Q2 2026, further underscores the distortion caused by mark-to-market losses, making the reported ROE of 1.7% appear artificially low relative to the underlying cash-generating ability.
NIM Stability Amid Funding Cost Pressures
NIM improved to 1.5% in Q2 2026 from 1.0% a year earlier, per NMFC's financial statements, but the efficiency ratio swung wildly from -2.2% to 138.2% in consecutive quarters, indicating non-operational volatility.
The improvement in NIM suggests that asset yields are rising faster than funding costs, which is a positive sign for the core lending business. However, the extreme swings in the efficiency ratio, driven by non-interest income, obscure the underlying cost structure. The negative efficiency ratio in Q2 2026 is not a reflection of operational efficiency but rather the impact of large unrealized losses. Investors should focus on the net interest margin trend and the stability of fee income to assess true operating leverage.
Leverage Near Regulatory Ceiling
NMFC's debt-to-equity ratio stands at 1.41x, near the upper limit for BDCs, as per reported figures. This leaves limited headroom for additional borrowing, constraining growth and capital return capacity.
With a debt-to-equity ratio of 1.41x, NMFC is operating close to the regulatory maximum of 2.0x for BDCs, but the practical limit is often lower due to market conditions. This high leverage amplifies the impact of credit losses on equity, as evidenced by the recent NAV decline. The company's ability to increase dividends or buy back shares is constrained by the need to maintain adequate capital ratios. Any further deterioration in asset quality could force deleveraging, which would pressure earnings and the dividend.
Provision Reversals Mask Credit Uncertainty
NMFC recorded $9.7M in provision reversals in Q2 2026, following $18.4M in Q1, as per financial statements. While this suggests improving credit conditions, the low net margin and high leverage warrant caution.
The provision reversals indicate that NMFC's credit quality may be stabilizing, but they also raise questions about the adequacy of prior reserves. The fact that net income is being bolstered by these reversals rather than core earnings suggests that the underlying portfolio is not generating sufficient income to cover expenses. The high leverage amplifies the impact of any future credit deterioration, making the current reserve levels a critical watch item. Investors should monitor the non-accrual rate and PIK income to gauge the true health of the portfolio.
P/E Misleads on Earnings Power
The trailing P/E of 55x is misleading for NMFC because earnings are depressed by non-cash items like unrealized losses and provision reversals. As reported in NMFC's filings, the forward P/E of 7.08x better reflects normalized earnings.
For BDCs, P/E ratios are often distorted by mark-to-market fluctuations and one-time provision reversals. NMFC's trailing P/E of 55x is not indicative of its earning power, as it is based on a period with significant non-cash charges. The forward P/E of 7.08x, which is based on analyst estimates of future earnings, provides a more accurate picture of the company's valuation. Investors should also consider P/B and dividend yield, which are more stable metrics for BDCs, to assess the investment case.