Latest Ratios: P/E Ratio 10.7x · EV/EBITDA 9.6x · ROE 12.5%. (2002–2025 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 | $4.5B | $4.8B | $3.9B | $3.3B | $3.4B | $3.7B | $2.7B | $2.3B | $2.1B | $2.3B | $2.2B |
| Enterprise Value | $11.3B | $11.7B | $12.0B | $15.0B | $17.9B | $21.2B | $22.0B | $22.7B | $24.0B | $23.3B | $26.5B |
| P/E Ratio → | 10.70 | 11.48 | 21.28 | 36.91 | 8.54 | 9.58 | 7.90 | 16.45 | 9.40 | 13.23 | 8.43 |
| P/S Ratio | 2.52 | 2.73 | 3.36 | 3.41 | 2.46 | 2.99 | 2.63 | 2.35 | 2.12 | 3.21 | 2.69 |
| P/B Ratio | 1.26 | 1.35 | 1.19 | 1.03 | 1.07 | 1.26 | 1.04 | 0.96 | 0.93 | 1.06 | 1.05 |
| P/FCF | 11.22 | 12.17 | 6.10 | 9.20 | 5.46 | 8.80 | 11.63 | 11.15 | 14.68 | 32.02 | 8.40 |
| P/OCF | 10.52 | 11.42 | 5.90 | 7.62 | 4.99 | 7.72 | 7.86 | 7.70 | 7.90 | 10.06 | 6.66 |
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 | — | 6.60 | 10.32 | 15.44 | 12.93 | 17.10 | 21.06 | 23.20 | 23.74 | 32.73 | 32.91 |
| EV / EBITDA | 9.56 | 9.89 | 33.31 | 69.88 | 26.44 | 33.46 | 33.84 | 61.44 | 50.94 | 64.03 | 50.85 |
| EV / EBIT | 9.85 | 11.39 | 52.62 | 217.73 | 35.73 | 42.28 | 48.75 | 128.42 | 83.79 | 102.96 | 66.47 |
| EV / FCF | — | 29.37 | 18.74 | 41.68 | 28.71 | 50.38 | 93.14 | 109.96 | 164.46 | 326.40 | 102.89 |
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 | 87.0% | 87.0% | 60.2% | 53.0% | 74.4% | 88.4% | 71.3% | 56.0% | 58.8% | 59.3% | 66.4% |
| Operating Margin | 50.6% | 50.6% | 12.4% | 3.8% | 27.6% | 35.4% | 32.8% | 10.5% | 17.0% | 19.2% | 33.4% |
| Net Profit Margin | 18.9% | 18.9% | 10.0% | 5.0% | 22.4% | 27.7% | 25.7% | 8.5% | 13.6% | 14.7% | 21.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.5% | 12.5% | 5.7% | 2.8% | 13.2% | 14.1% | 14.0% | 6.0% | 10.2% | 8.2% | 13.0% |
| ROA | 3.1% | 3.1% | 1.2% | 0.5% | 2.0% | 1.8% | 1.5% | 0.6% | 0.9% | 0.7% | 0.9% |
| ROIC | 7.5% | 7.5% | 1.3% | 0.3% | 2.0% | 1.8% | 1.5% | 0.6% | 0.9% | 0.7% | 1.1% |
| ROCE | 8.9% | 8.9% | 1.8% | 0.4% | 2.7% | 2.3% | 2.0% | 0.8% | 1.2% | 0.9% | 1.4% |
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 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.18 | 2.18 | 2.52 | 3.70 | 4.57 | 5.98 | 7.36 | 8.59 | 9.60 | 9.86 | 11.91 |
| Debt / EBITDA | 6.61 | 6.61 | 23.01 | 55.24 | 21.59 | 27.82 | 29.80 | 55.57 | 47.18 | 58.59 | 47.32 |
| Net Debt / Equity | — | 1.91 | 2.46 | 3.64 | 4.54 | 5.93 | 7.31 | 8.53 | 9.44 | 9.72 | 11.76 |
| Net Debt / EBITDA | 5.79 | 5.79 | 22.47 | 54.46 | 21.41 | 27.62 | 29.61 | 55.21 | 46.39 | 57.75 | 46.69 |
| Debt / FCF | — | 17.19 | 12.64 | 32.49 | 23.24 | 41.58 | 81.51 | 98.81 | 149.78 | 294.38 | 94.49 |
| Interest Coverage | 2.06 | 2.06 | 0.34 | 0.08 | 1.17 | 2.85 | 1.36 | 0.25 | 0.43 | 0.49 | 1.03 |
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 | 382.15 | 382.15 | 0.64 | 0.56 | 0.71 | 1.28 | 0.86 | 0.30 | — | — | — |
| Quick Ratio | 382.15 | 382.15 | 0.64 | 0.56 | 0.71 | 1.28 | 0.86 | 0.30 | — | — | — |
| Cash Ratio | 205.22 | 205.22 | 0.09 | 0.07 | 0.05 | 0.13 | 0.19 | 0.13 | — | — | — |
| Asset Turnover | — | 0.16 | 0.13 | 0.11 | 0.09 | 0.07 | 0.06 | 0.07 | 0.07 | 0.05 | 0.04 |
| 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 | 1.0% | 0.9% | 1.0% | 1.2% | 1.1% | 0.9% | 1.2% | 1.3% | 1.3% | 1.1% | 1.0% |
| Payout Ratio | 10.0% | 10.0% | 22.2% | 43.9% | 9.0% | 8.8% | 9.0% | 20.8% | 11.8% | 13.9% | 8.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 9.3% | 8.7% | 4.7% | 2.7% | 11.7% | 10.4% | 12.7% | 6.1% | 10.6% | 7.6% | 11.9% |
| FCF Yield | 8.9% | 8.2% | 16.4% | 10.9% | 18.3% | 11.4% | 8.6% | 9.0% | 6.8% | 3.1% | 11.9% |
| Buyback Yield | 1.6% | 1.4% | 2.1% | 0.8% | 2.9% | 1.6% | 2.7% | 1.8% | 2.1% | 3.0% | 3.2% |
| Total Shareholder Yield | 2.5% | 2.3% | 3.2% | 2.0% | 3.9% | 2.5% | 3.8% | 3.0% | 3.4% | 4.1% | 4.2% |
| Shares Outstanding | — | $36M | $37M | $37M | $38M | $38M | $39M | $40M | $41M | $42M | $43M |
Includes 30+ ratios · 24 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying NNI stock.
Nelnet, Inc.'s current P/E ratio is 10.7x. The historical average is 13.6x. This places it at the 57th percentile of its historical range.
Nelnet, Inc.'s current EV/EBITDA is 9.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 56.4x.
Nelnet, Inc.'s return on equity (ROE) is 12.5%. The historical average is 16.0%.
Based on historical data, Nelnet, Inc. is trading at a P/E of 10.7x. This is at the 57th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Nelnet, Inc.'s current dividend yield is 0.96% with a payout ratio of 10.0%.
Nelnet, Inc. has 87.0% gross margin and 50.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Nelnet, Inc.'s Debt/EBITDA ratio is 6.6x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
FFELP runoff and regulatory shifts
Metrics are mathematically derived from official filings.
Conglomerate Discount Persists
Trading at 1.30x book and 11.0x trailing earnings, Nelnet's valuation appears to embed a conglomerate discount, as per reported figures, despite a 92.48 tangible book value per share.
The P/B of 1.30x is below SLM's 2.37x but above NAVI's 0.38x, reflecting a market that may be pricing the legacy loan runoff more heavily than the growth in EdTech and fiber. The forward P/E of 15.62x implies the market expects earnings to decline from the trailing 11.04x, consistent with the Q2 2026 EPS miss. This suggests investors are not fully crediting the potential sum-of-the-parts value of Allo and FACTS, which may warrant a premium to book if those segments were valued independently.
ROE Volatility Masks Core Stability
ROE swung from 5.3% in Q2 2025 to 1.8% in Q2 2026, per quarterly data, as fee income fell 67.9% year-over-year, though negative provisions of $47.3M provided a partial offset.
The DuPont decomposition shows that ROE is driven by asset utilization and non-interest income, not NIM, which remains thin at 0.7%. The efficiency ratio spike to 73.9% in Q2 2026 from 36.7% a year earlier indicates that revenue declines are outpacing cost cuts, pressuring profitability. However, the negative provision suggests credit quality is improving, which may support future earnings if the revenue base stabilizes.
NIM Thin, Efficiency Deteriorates
Net interest margin improved to 0.7% in Q2 2026 from 0.5% a year earlier, but the efficiency ratio jumped to 73.9% from 36.7%, according to financial statements, signaling cost pressure.
The NIM improvement is marginal and likely reflects the low-yielding FFELP portfolio, while funding costs may be rising. The efficiency ratio deterioration is more concerning, as it suggests that the revenue decline from the USDS transition and fee volatility is not being matched by cost reductions. This may indicate that the company's fixed cost base, particularly in servicing and fiber, is becoming a larger burden relative to revenue.
Equity Buffer Strengthens Modestly
Equity-to-assets improved to 0.25 in Q2 2026 from 0.21 a year earlier, with equity at $3.8B, as per balance sheet data, providing a cushion for ongoing diversification.
The equity ratio is low compared to traditional banks, but Nelnet's business model relies less on deposit funding and more on retained earnings and securities. The increase in equity suggests that capital generation is outpacing asset growth, which may support future dividends or buybacks, though current capital returns remain modest at $36.2M in Q2 2026. Investors should monitor whether the capital-intensive fiber build-out will require additional leverage, which could pressure this ratio.
Reserve Releases Signal Credit Strength
Loan loss provisions turned negative at -$47.3M in Q2 2026, reversing from positive provisions in prior quarters, as reported, suggesting improving credit quality in the FFELP portfolio.
The negative provision indicates that the company is releasing reserves as the loan book runs off, which may be a sign of better-than-expected credit performance. However, this also reduces the cushion for future losses, and the sustainability of these releases is uncertain. The asset quality metrics are not fully disclosed, but the trend suggests that credit risk is currently manageable, though regulatory changes could alter this outlook.
P/E Misleads Due to Provision Volatility
The P/E ratio is distorted by non-cash derivative adjustments and provision reversals, as seen in Q2 2026, so investors should focus on P/TBV and core earnings, per reported figures.
The trailing P/E of 11.04x is artificially depressed by the negative provision and may overstate earnings power, while the forward P/E of 15.62x may understate it if the revenue decline is temporary. A more appropriate metric is P/TBV, which at 1.38x (price of $127.79 divided by tangible book of $92.48) reflects the market's valuation of the ongoing businesses. Analysts should adjust for derivative mark-to-market and provision reversals to assess the true cash-generating ability of the loan portfolio and the growth segments.