Latest Ratios: P/E Ratio 34.3x · EV/EBITDA 26.4x · ROE 23.0%. (2022–2025 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 |
|---|---|---|---|---|---|
| Market Cap | $6.6B | $6.0B | $1.9B | — | — |
| Enterprise Value | $9.6B | $9.0B | $5.4B | — | — |
| P/E Ratio → | 34.34 | 31.47 | 34.50 | — | — |
| P/S Ratio | 1.25 | 1.14 | 0.48 | — | — |
| P/B Ratio | 6.89 | 6.32 | 2.72 | — | — |
| P/FCF | 22.19 | 20.13 | 6.47 | — | — |
| P/OCF | 16.40 | 14.88 | 5.30 | — | — |
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 |
|---|---|---|---|---|---|
| EV / Revenue | — | 1.70 | 1.32 | — | — |
| EV / EBITDA | 26.37 | 24.68 | 33.05 | — | — |
| EV / EBIT | 31.11 | 29.09 | 37.13 | — | — |
| EV / FCF | — | 30.17 | 18.00 | — | — |
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 |
|---|---|---|---|---|---|
| Gross Margin | 21.9% | 21.9% | 19.4% | 14.4% | 16.5% |
| Operating Margin | 5.9% | 5.9% | 3.0% | 6.7% | 9.5% |
| Net Profit Margin | 3.6% | 3.6% | 1.4% | 3.6% | 6.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| ROE | 23.0% | 23.0% | 13.6% | 132.5% | 219.2% |
| ROA | 3.5% | 3.5% | 1.3% | 3.8% | 6.1% |
| ROIC | 5.5% | 5.5% | 2.5% | 6.3% | 8.6% |
| ROCE | 7.0% | 7.0% | 3.4% | 8.3% | 11.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Debt / Equity | 3.36 | 3.36 | 5.07 | 27.97 | 28.05 |
| Debt / EBITDA | 8.75 | 8.75 | 22.13 | 12.19 | 7.65 |
| Net Debt / Equity | — | 3.15 | 4.85 | 27.25 | 27.09 |
| Net Debt / EBITDA | 8.21 | 8.21 | 21.17 | 11.88 | 7.39 |
| Debt / FCF | — | 10.04 | 11.53 | 154.75 | 129.32 |
| Interest Coverage | 10.93 | 10.93 | 3.29 | 4.15 | 9.11 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Current Ratio | 1.07 | 1.07 | 0.96 | 1.58 | 1.06 |
| Quick Ratio | 1.07 | 1.07 | 0.96 | 1.58 | 1.06 |
| Cash Ratio | 0.20 | 0.20 | 0.16 | 0.16 | 0.14 |
| Asset Turnover | — | 0.95 | 0.78 | 0.89 | 0.98 |
| 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 |
|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — |
| Payout Ratio | — | — | 60.5% | 71.2% | 40.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Earnings Yield | 2.9% | 3.2% | 2.9% | — | — |
| FCF Yield | 4.5% | 5.0% | 15.4% | — | — |
| Buyback Yield | 0.0% | — | — | — | — |
| Total Shareholder Yield | 0.0% | — | — | — | — |
| Shares Outstanding | — | $157M | $149M | $150M | $150M |
Regulatory reimbursement policy shifts
According to current market data, PACS trades at a forward P/E of 18.41 and an EV/EBITDA of 22.38, suggesting that investors are pricing in significant future earnings growth that may be difficult to sustain given the company's reliance on aggressive, acquisition-led expansion strategies.
The current valuation multiples appear to reflect a growth-oriented premium that assumes seamless integration of newly acquired facilities. However, given the thin operating margins and the inherent volatility of the post-acute care sector, investors should monitor whether these multiples are justified by organic margin expansion rather than just top-line scaling.
Based on reported financial figures, PACS has struggled to generate meaningful returns on invested capital, with ROIC hovering at a modest 2.2% as of 2026Q1, indicating that the company's rapid asset accumulation has yet to translate into superior compounding of shareholder capital.
The low ROIC suggests that the cost of acquiring and integrating new facilities is currently outpacing the incremental returns generated by those assets. This trend warrants further investigation into whether the decentralized operating model can achieve the necessary economies of scale to drive higher returns on capital over the long term.
As reported in recent financial statements, the company's asset turnover remains consistently low at approximately 0.25, reflecting the capital-intensive nature of the skilled nursing facility business model where revenue growth is heavily dependent on the continuous acquisition of new, high-cost physical assets.
The stability of the asset turnover ratio suggests that the company is not yet achieving significant operational leverage from its existing footprint. Investors should watch for improvements in this metric as a key indicator that the company is successfully transitioning from an acquisition-heavy phase to one of operational optimization.
Based on an analysis of the business model, the P/E ratio is frequently misapplied to PACS because it fails to account for the significant non-cash charges and lease-related accounting nuances inherent in the post-acute care industry's complex regulatory and reimbursement environment.
Using P/E as a primary valuation metric obscures the impact of synthetic debt and provider tax arrangements that artificially inflate both revenue and expenses. Analysts should instead prioritize EV/EBITDAR or cash-flow-based metrics to better capture the underlying earning power of the facility network, as these adjustments provide a more accurate picture of operational health.
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Quick answers to the most common questions about buying PACS stock.
PACS Group, Inc.'s current P/E ratio is 34.3x. The historical average is 33.0x. This places it at the 50th percentile of its historical range.
PACS Group, Inc.'s current EV/EBITDA is 26.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 28.9x.
PACS Group, Inc.'s return on equity (ROE) is 23.0%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 97.1%.
Based on historical data, PACS Group, Inc. is trading at a P/E of 34.3x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
PACS Group, Inc. has 21.9% gross margin and 5.9% operating margin.
PACS Group, Inc.'s Debt/EBITDA ratio is 8.8x, indicating high leverage. A ratio above 4x may signal elevated financial risk.