Latest Ratios: P/E Ratio 6.8x · EV/EBITDA 6.1x · ROE 32.3%. (1996–2025 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 | $4.4B | $5.6B | $6.1B | $4.5B | $4.3B | $6.3B | $4.8B | $3.8B | $3.7B | $5.0B | $4.8B |
| Enterprise Value | $6.1B | $7.2B | $7.8B | $5.6B | $5.0B | $7.9B | $5.5B | $2.9B | $5.4B | $6.7B | $5.0B |
| P/E Ratio → | 6.82 | 7.82 | 10.29 | 7.93 | 9.43 | 5.45 | 5.51 | 6.65 | 7.77 | 18.23 | 20.79 |
| P/S Ratio | 2.24 | 2.82 | 3.28 | 2.47 | 2.38 | 3.10 | 2.67 | 2.29 | 2.68 | 4.40 | 4.97 |
| P/B Ratio | 2.00 | 2.29 | 2.81 | 2.38 | 2.51 | 2.93 | 1.87 | 1.16 | 1.23 | 2.00 | 2.03 |
| P/FCF | 7.71 | 9.74 | — | — | 869.58 | — | 2.23 | — | — | — | — |
| P/OCF | 7.71 | 9.74 | — | — | 869.58 | — | — | — | — | — | — |
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 | — | 3.64 | 4.22 | 3.07 | 2.72 | 3.89 | 3.07 | 1.74 | 3.95 | 5.95 | 5.23 |
| EV / EBITDA | 6.09 | 7.26 | 9.56 | 6.98 | 7.65 | 5.07 | 4.73 | 3.85 | 9.38 | 13.32 | 11.84 |
| EV / EBIT | 6.10 | 7.28 | 9.77 | 7.13 | 7.86 | 5.12 | 4.79 | 3.92 | 9.62 | 13.63 | 12.11 |
| EV / FCF | — | 12.55 | — | — | 993.58 | — | 2.58 | — | — | — | — |
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 | 53.1% | 53.1% | 48.2% | 51.6% | 50.3% | 85.5% | 72.9% | 55.4% | 59.3% | 65.6% | 69.9% |
| Operating Margin | 31.9% | 31.9% | 26.7% | 27.4% | 26.7% | 63.9% | 49.3% | 31.3% | 29.7% | 34.3% | 36.2% |
| Net Profit Margin | 24.0% | 24.0% | 20.4% | 20.5% | 19.8% | 48.2% | 37.6% | 24.3% | 25.9% | 20.1% | 21.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 32.3% | 32.3% | 30.1% | 32.2% | 24.2% | 49.3% | 30.0% | 18.4% | 17.9% | 12.0% | 11.3% |
| ROA | 2.5% | 2.5% | 2.1% | 2.0% | 1.6% | 3.9% | 2.8% | 1.9% | 2.0% | 1.4% | 1.5% |
| ROIC | 8.8% | 8.8% | 7.6% | 8.3% | 6.3% | 14.6% | 11.0% | 7.3% | 6.5% | 7.2% | 8.1% |
| ROCE | 11.5% | 11.5% | 9.7% | 10.5% | 8.0% | 18.7% | 14.4% | 9.7% | 8.3% | 9.0% | 10.6% |
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 | 2.39 | 2.39 | 2.98 | 2.78 | 3.03 | 2.76 | 2.02 | 1.40 | 1.44 | 1.32 | 0.92 |
| Debt / EBITDA | 5.89 | 5.89 | 7.89 | 6.57 | 8.08 | 3.81 | 4.44 | 6.12 | 7.47 | 6.52 | 5.11 |
| Net Debt / Equity | — | 0.66 | 0.81 | 0.57 | 0.36 | 0.74 | 0.29 | -0.28 | 0.58 | 0.70 | 0.11 |
| Net Debt / EBITDA | 1.63 | 1.63 | 2.13 | 1.35 | 0.96 | 1.03 | 0.63 | -1.21 | 3.01 | 3.46 | 0.59 |
| Debt / FCF | — | 2.81 | — | — | 124.00 | — | 0.34 | — | — | — | — |
| Interest Coverage | 0.88 | 0.88 | 0.70 | 0.76 | 1.16 | 4.03 | 2.13 | 1.05 | 1.07 | 1.60 | 2.23 |
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 | 0.28 | 0.28 | 0.40 | 0.38 | 0.40 | 0.40 | 0.36 | 0.31 | 0.21 | 0.19 | 0.23 |
| Quick Ratio | 0.28 | 0.28 | 0.40 | 0.38 | 0.40 | 0.40 | 0.36 | 0.31 | 0.21 | 0.19 | 0.23 |
| Cash Ratio | 0.20 | 0.20 | 0.22 | 0.19 | 0.22 | 0.21 | 0.20 | 0.22 | 0.13 | 0.10 | 0.14 |
| Asset Turnover | — | 0.10 | 0.10 | 0.10 | 0.08 | 0.08 | 0.08 | 0.07 | 0.07 | 0.07 | 0.06 |
| 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 | 14.3% | 12.5% | 1.6% | 2.3% | 2.6% | 1.0% | 1.0% | 1.3% | 0.4% | 0.3% | 0.4% |
| Payout Ratio | 94.0% | 94.0% | 16.3% | 17.4% | 24.1% | 5.2% | 5.3% | 8.8% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 14.7% | 12.8% | 9.7% | 12.6% | 10.6% | 18.4% | 18.2% | 15.0% | 12.9% | 5.5% | 4.8% |
| FCF Yield | 13.0% | 10.3% | — | — | 0.1% | — | 44.8% | — | — | — | — |
| Buyback Yield | 8.3% | 6.6% | 4.1% | 7.8% | 16.4% | 24.3% | 11.6% | 4.4% | 0.0% | 3.3% | 0.0% |
| Total Shareholder Yield | 22.6% | 19.1% | 5.7% | 10.1% | 19.0% | 25.3% | 12.6% | 5.7% | 0.4% | 3.6% | 0.4% |
| Shares Outstanding | — | $207M | $220M | $234M | $262M | $320M | $387M | $431M | $440M | $439M | $433M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying SLM stock.
SLM Corporation's current P/E ratio is 6.8x. The historical average is 8.3x. This places it at the 54th percentile of its historical range.
SLM Corporation's current EV/EBITDA is 6.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 30.2x.
SLM Corporation's return on equity (ROE) is 32.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 26.8%.
Based on historical data, SLM Corporation is trading at a P/E of 6.8x. This is at the 54th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
SLM Corporation's current dividend yield is 14.31% with a payout ratio of 94.0%.
SLM Corporation has 53.1% gross margin and 31.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
SLM Corporation's Debt/EBITDA ratio is 5.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Credit costs and rate sensitivity
Metrics are mathematically derived from official filings.
Premium P/B Masks Earnings Volatility
SLM trades at 2.2x tangible book, a premium to peers, yet its P/E of 7.5x suggests the market discounts earnings quality. According to recent financial data, the implied ROTCE appears modest given the cyclicality of credit costs.
The P/B of 2.2x is significantly above Navient's 0.35x, reflecting SLM's stronger franchise and growth prospects, but it also embeds expectations of sustained high returns. However, the trailing P/E of 7.5x and forward P/E of 8.3x indicate that investors are wary of the earnings volatility stemming from provision swings. The market appears to price SLM as a specialized lender with a durable moat, but the premium is not excessive given the historical ROE fluctuations.
ROE Decomposition Reveals Leverage Dependence
ROE swung from 14.5% in Q1 2024 to -2.0% in Q3 2024, then recovered to 12.6% in Q1 2026, per SLM's quarterly reports. The DuPont analysis shows that high leverage (equity/assets around 8%) amplifies both gains and losses from NIM and provisions.
The bank's ROE is highly sensitive to credit costs, as evidenced by the Q2 2026 ROE of 2.4% despite a NIM of 1.8%. The efficiency ratio improved to 29.1% in Q2 2026 from 25.4% a year earlier, indicating cost discipline, but the provision for credit losses absorbed a significant portion of net interest income. The reliance on non-interest income, which ranged from 3.9% to 23.9% of revenue, adds volatility to the profitability profile.
NIM Expansion Tempered by Provision Spike
Net interest margin expanded to 1.8% in Q2 2026 from 1.3% a year earlier, as reported in SLM's financial statements, reflecting favorable rate repricing. However, the efficiency ratio improved to 29.1%, but the sharp rise in provisions to $316.7M in Q2 2026 signals that credit costs are offsetting margin gains.
The NIM improvement is a positive sign, but it is not translating into bottom-line growth due to the elevated provision. The efficiency ratio of 29.1% is strong, indicating effective cost control, but the sustainability of this ratio is questionable if regulatory compliance costs rise. Investors should monitor whether the NIM expansion can persist as deposit costs reprice higher.
Capital Ratios Stable but Earnings Retention Constrained
Equity-to-assets improved to 8.7% in Q2 2026 from 7.0% in Q4 2024, based on SLM's balance sheet data, indicating a gradual strengthening of the capital base. However, the negative operating cash flow in Q2 2026 suggests that internal capital generation is under pressure.
The capital position appears adequate, but the reliance on securitization and securities sales to fund operations raises questions about the quality of capital. The dividend yield of 13.0% is unusually high, which may indicate that the market expects a dividend cut or that the payout is not fully covered by earnings. The buyback reduction from $290.7M in Q1 2026 to $3.1M in Q2 2026 suggests a shift in capital allocation priorities.
Provision Spike Signals Credit Deterioration
Loan loss provisions surged to $316.7M in Q2 2026 from $188.4M in Q1 2026, a 68% sequential increase, according to SLM's quarterly disclosures. This suggests a marked deterioration in credit quality, despite the high cosigner rate on new originations.
The provision spike is a red flag, as it indicates that the credit performance of the existing portfolio is worsening. The high cosigner rate (over 80%) provides some cushion, but the magnitude of the increase suggests that even cosigned loans are experiencing stress. Investors should monitor the net charge-off rate and the adequacy of the allowance for credit losses, which may need to be increased further.
P/E Misleads Due to Provision Volatility
The most misapplied ratio for SLM is the P/E, as earnings are heavily distorted by CECL provisions and gain-on-sale accounting. According to recent financial reports, the trailing P/E of 7.5x appears cheap, but it obscures the true earning power when provisions are elevated.
Investors should use P/TBV or P/B as the primary valuation metric, as they are less affected by short-term earnings volatility. Additionally, adjusting earnings for the provision volatility and gain-on-sale gains can provide a clearer picture of normalized profitability. The high dividend yield of 13.0% may also be misleading, as it could be unsustainable if earnings remain depressed.