SLM Corporation (SLM) Financial Ratios
30 years of historical data (1996–2025) · Financial Services · Financial - Credit Services
EV/EBITDA
↑
6.21
↓-15% vs avg
5yr avg: 7.30
30Y Low3.3·High86.5
P/FCF
↓
7.93
↓-98% vs avg
5yr avg: 439.66
30Y Low0.8·High120.1
P/B Ratio
↓
1.95
↓-25% vs avg
5yr avg: 2.58
30Y Low0.3·High3.5
ROE
↓
32.3%
-4% vs avg
5yr avg: 33.6%
30Y Low-19%·High66%
Debt/EBITDA
↑
5.89
↓-9% vs avg
5yr avg: 6.45
30Y Low2.4·High47.9
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
SLM Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
SLM Corporation trades at 6.7x earnings, 19% below its 5-year average of 8.2x, sitting at the 54th percentile of its historical range. Compared to the Financial Services sector median P/E of 13.6x, the stock trades at a discount of 51%. On a free-cash-flow basis, the stock trades at 7.9x P/FCF, 98% below the 5-year average of 439.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.6B | $5.6B | $6.1B | $4.5B | $4.3B | $6.3B | $4.8B | $3.8B | $3.7B | $5.0B | $4.8B |
| Enterprise Value | $6.2B | $7.2B | $7.8B | $5.6B | $5.0B | $7.9B | $5.5B | $2.9B | $5.4B | $6.7B | $5.0B |
| P/E Ratio → | 6.66 | 7.82 | 10.29 | 7.93 | 9.43 | 5.45 | 5.51 | 6.65 | 7.77 | 18.23 | 20.79 |
| P/S Ratio | 1.47 | 1.80 | 2.03 | 1.58 | 1.83 | 2.61 | 2.05 | 1.61 | 1.94 | 3.45 | 4.16 |
| P/B Ratio | 1.95 | 2.29 | 2.81 | 2.38 | 2.51 | 2.93 | 1.87 | 1.16 | 1.23 | 2.00 | 2.03 |
| P/FCF | 7.93 | 9.74 | — | — | 869.58 | — | 2.23 | — | — | — | — |
| P/OCF | 7.93 | 9.74 | — | — | 869.58 | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
SLM EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
SLM Corporation's enterprise value stands at 6.2x EBITDA, 15% below its 5-year average of 7.3x. The Financial Services sector median is 11.4x, placing the stock at a 45% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.32 | 2.61 | 1.96 | 2.10 | 3.27 | 2.36 | 1.23 | 2.86 | 4.67 | 4.38 |
| EV / EBITDA | 6.21 | 7.26 | 9.56 | 6.98 | 7.65 | 5.07 | 4.73 | 3.85 | 9.38 | 13.32 | 11.84 |
| EV / EBIT | 6.23 | 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 | — | — | — | — |
SLM Profitability
Margins and return-on-capital ratios measuring operating efficiency
SLM Corporation earns an operating margin of 31.9%, above the Financial Services sector average of 20.3%. Operating margins have expanded from 27.4% to 31.9% over the past 3 years, signaling improving operational efficiency. Return on equity of 32.3% is exceptionally high — well above the sector median of 9.0%. ROIC of 8.8% represents adequate returns on invested capital versus a sector median of 5.5%.
Margins
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% |
Return on Capital
| 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% |
SLM Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
SLM Corporation carries a Debt/EBITDA ratio of 5.9x, which is highly leveraged (38% above the sector average of 4.3x). Net debt stands at $1.6B ($5.9B total debt minus $4.2B cash). Interest coverage of just 0.9x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| 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 |
SLM Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.28x is below 1.0, meaning current liabilities exceed current assets — though the company's $4.2B cash position helps mitigate short-term liquidity concerns. The current ratio has declined from 0.38x to 0.28x over the past 3 years.
| 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 | — | — | — | — | — | — | — | — | — | — | — |
SLM Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
SLM Corporation returns 22.8% to shareholders annually — split between a 14.7% dividend yield and 8.1% buyback yield. The payout ratio of 94.0% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 15.0% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 14.7% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 94.0% | 94.0% | 16.3% | 17.4% | 24.1% | 5.2% | 5.3% | 8.8% | — | — | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 15.0% | 12.8% | 9.7% | 12.6% | 10.6% | 18.4% | 18.2% | 15.0% | 12.9% | 5.5% | 4.8% |
| FCF Yield | 12.6% | 10.3% | — | — | 0.1% | — | 44.8% | — | — | — | — |
| Buyback Yield | 8.1% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 22.8% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $207M | $220M | $234M | $262M | $320M | $387M | $431M | $440M | $439M | $433M |
Peer Comparison
Compare SLM with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 SLMYou | $5B | 6.7 | 6.2 | 7.9 | 53.1% | 31.9% | 32.3% | 8.8% | 5.9 |
 NAVI | $760M | -10.0 | 17.8 | 1.7 | 87.0% | 77.1% | -3.2% | 3.8% | 18.3 |
 HFBL | $62M | 16.1 | 8.3 | 11.5 | 63.9% | 14.4% | 7.2% | 5.9% | 0.7 |
 COF | $125B | 50.0 | 15.7 | 4.8 | 47.3% | 3.3% | 2.8% | 1.3% | 6.8 |
 SYF | $26B | 8.1 | 5.1 | 2.7 | 51.0% | 24.2% | 21.3% | 10.8% | 3.0 |
 ALLY | $14B | 19.2 | 10.6 | — | 52.0% | 8.6% | 5.8% | 2.2% | 8.9 |
 SOFI | $23B | 45.9 | 26.0 | — | 75.1% | 11.0% | 5.7% | 3.6% | 2.4 |
 APEI | $967M | 38.8 | 13.6 | 21.0 | 51.7% | 8.3% | 10.5% | 12.4% | 2.3 |
 PRDO | $2B | 13.2 | 8.3 | 9.3 | 71.7% | 23.2% | 16.6% | 15.3% | 0.4 |
 STRA | $2B | 13.9 | 6.9 | 11.1 | 49.0% | 15.5% | 7.7% | 9.0% | 0.4 |
 LAUR | $5B | 19.3 | 10.9 | 19.8 | 28.3% | 25.3% | 26.2% | 20.3% | 1.6 |
| Financial Services Median | — | 13.6 | 11.4 | 11.1 | 64.1% | 20.3% | 9.0% | 5.5% | 4.3 |
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Includes 30+ ratios · 30 years · Updated daily
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SLM — Frequently Asked Questions
Quick answers to the most common questions about buying SLM stock.
What is SLM Corporation's P/E ratio?
SLM Corporation's current P/E ratio is 6.7x. The historical average is 8.3x. This places it at the 54th percentile of its historical range.
What is SLM Corporation's EV/EBITDA?
SLM Corporation's current EV/EBITDA is 6.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 30.2x.
What is SLM Corporation's ROE?
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%.
Is SLM stock overvalued?
Based on historical data, SLM Corporation is trading at a P/E of 6.7x. This is at the 54th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is SLM Corporation's dividend yield?
SLM Corporation's current dividend yield is 14.67% with a payout ratio of 94.0%.
What are SLM Corporation's profit margins?
SLM Corporation has 53.1% gross margin and 31.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does SLM Corporation have?
SLM Corporation's Debt/EBITDA ratio is 5.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.