Latest Ratios: P/E Ratio 11.5x · EV/EBITDA 9.8x · 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 | $4.8B | $4.8B | $3.9B | $3.3B | $3.4B | $3.7B | $2.7B | $2.3B | $2.1B | $2.3B | $2.2B |
| Enterprise Value | $11.6B | $11.7B | $12.0B | $15.0B | $17.9B | $21.2B | $22.0B | $22.7B | $24.0B | $23.3B | $26.5B |
| P/E Ratio → | 11.48 | 11.48 | 21.28 | 36.91 | 8.54 | 9.58 | 7.90 | 16.45 | 9.40 | 13.23 | 8.43 |
| P/S Ratio | 2.11 | 2.13 | 2.12 | 1.82 | 1.88 | 2.61 | 2.00 | 1.37 | 1.27 | 1.94 | 1.81 |
| P/B Ratio | 1.35 | 1.35 | 1.19 | 1.03 | 1.07 | 1.26 | 1.04 | 0.96 | 0.93 | 1.06 | 1.05 |
| P/FCF | 12.04 | 12.17 | 6.10 | 9.20 | 5.46 | 8.80 | 11.63 | 11.15 | 14.68 | 32.02 | 8.40 |
| P/OCF | 11.29 | 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 | — | 5.15 | 6.51 | 8.25 | 9.87 | 14.97 | 16.00 | 13.53 | 14.28 | 19.81 | 22.21 |
| EV / EBITDA | 9.84 | 9.89 | 33.31 | 69.88 | 26.44 | 33.46 | 33.84 | 61.44 | 50.94 | 64.03 | 50.85 |
| EV / EBIT | 10.13 | 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 | 0.9% | — | — | — | — | — | — | — | — | — | — |
| 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 | 8.7% | 8.7% | 4.7% | 2.7% | 11.7% | 10.4% | 12.7% | 6.1% | 10.6% | 7.6% | 11.9% |
| FCF Yield | 8.3% | 8.2% | 16.4% | 10.9% | 18.3% | 11.4% | 8.6% | 9.0% | 6.8% | 3.1% | 11.9% |
| Buyback Yield | 1.5% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 2.3% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $36M | $37M | $37M | $38M | $38M | $39M | $40M | $41M | $42M | $43M |
Infrastructure capital intensity
Based on current market data, Nelnet trades at a P/E of 11.61, which appears to reflect a conglomerate discount as investors struggle to reconcile the declining legacy student loan servicing business with the high-growth potential of the company's fiber-optic and EdTech segments compared to sector peers.
The forward P/E of 15.63 suggests that the market anticipates a contraction in earnings as the legacy loan portfolio continues its runoff. Investors should monitor whether the valuation gap narrows as the EdTech and Communications segments represent a larger share of the total enterprise value.
According to reported financial statements, Nelnet's ROIC has remained consistently low, fluctuating between -0.2% and 1.5% over the last ten quarters, which suggests that the company's aggressive reinvestment into capital-intensive fiber infrastructure is currently failing to generate returns that exceed the firm's cost of capital.
The persistent gap between ROIC and historical norms warrants further investigation into whether the Allo fiber expansion will eventually reach an inflection point of profitability. The current trend indicates that the company is in a heavy investment phase that suppresses short-term capital efficiency metrics.
As reported in recent filings, Nelnet's asset turnover remains extremely low at 0.04, a figure that highlights the structural shift from a high-velocity loan servicing model to a capital-heavy infrastructure business that requires significant long-term investment before assets can be fully utilized to generate revenue.
The extreme variability in DSO, which swung from 19 to 1669 days, suggests that the company's working capital management is heavily influenced by the timing of large-scale contract payments and the unique nature of its diverse business segments. This volatility makes it difficult to assess operational efficiency using standard turnover ratios.
Based on reported figures, Nelnet's interest coverage ratio has been highly erratic, dropping to -0.19 in 2023Q4 and recovering to 1.69 by 2026Q1, which indicates that the company's ability to service its debt remains sensitive to the volatility of its core operating income.
While the debt-to-equity ratio has trended downward from 3.70 to 2.14, the absolute level of debt remains significant relative to the company's ability to generate consistent interest coverage. Investors should monitor the sustainability of these debt levels as the company continues to fund its capital-intensive fiber-optic expansion.
The most commonly misapplied metric for Nelnet is the Debt-to-Equity ratio, which, when viewed in isolation, obscures the reality that a significant portion of the company's debt is tied to self-liquidating student loan assets rather than traditional corporate leverage used for operational expansion.
Analysts should instead focus on a sum-of-the-parts valuation that separates the legacy loan portfolio from the high-growth EdTech and Communications segments. Using a single leverage ratio for a business that acts as both a financial institution and an infrastructure provider leads to a distorted view of the company's true risk profile.
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Quick answers to the most common questions about buying NNI stock.
Nelnet, Inc.'s current P/E ratio is 11.5x. The historical average is 13.6x. This places it at the 57th percentile of its historical range.
Nelnet, Inc.'s current EV/EBITDA is 9.8x. 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 11.5x. 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 0.89% 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.