Aramark (ARMK) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-14.5%

$46.47

vs $54.36 price

Levered DCF

$6.30

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

2.57

Grey zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	31.45×	38.44×	9.67×	29.63×	-71.75×	-10.87×	17.07×	13.45×
P/B	3.27×	3.33×	1.76×	1.91×	2.42×	1.83×	2.31×	2.52×
P/S	0.56×	0.58×	0.41×	0.42×	0.54×	0.39×	0.47×	0.48×
EV / EBITDA	12.31×	12.61×	8.01×	13.74×	16.69×	36.19×	9.39×	10.32×
Gross margin	5.8%	8.2%	8.1%	7.8%	9.0%	6.5%	10.4%	11.3%
Operating margin	4.3%	4.1%	3.9%	3.0%	1.6%	-2.1%	5.5%	5.2%
Net margin	1.8%	1.5%	4.2%	1.4%	-0.8%	-3.6%	2.8%	3.6%
Current ratio	0.99×	0.81×	1.04×	1×	1.01×	1.99×	0.98×	1.17×
Debt / equity	1.82×	1.83×	1.87×	2.57×	2.88×	3.54×	2.01×	2.39×
Interest coverage	2.17×	1.82×	1.34×	1.08×	0.46×	-0.68×	2.41×	2.32×
Dividend yield	1.1%	1.0%	1.8%	2.0%	1.7%	2.2%	1.4%	1.4%
Payout ratio	34.0%	38.1%	17.0%	58.2%	-123.3%	-24.0%	24.2%	18.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.4%	8.6%	18.2%	6.4%	-3.3%	-16.9%	13.5%	18.7%
Return on invested capital	6.1%	5.4%	3.7%	2.9%	1.1%	-1.4%	6.5%	7.3%
Return on assets	2.5%	2.1%	4.0%	1.3%	-0.6%	-2.9%	3.3%	4.1%
Free cash flow yield	4.4%	3.0%	4.7%	5.7%	3.8%	-3.7%	6.5%	5.6%
Earnings yield	3.2%	2.6%	10.3%	3.4%	-1.4%	-9.2%	5.9%	7.4%
Enterprise value	$15.4B	$15B	$11.5B	$13.3B	$13.9B	$12.2B	$14.1B	$14.7B
Net debt / EBITDA	4.07×	4.11×	3.48×	7.73×	8.78×	21.32×	4.29×	4.95×
Cash conversion cycle (days)	21	21	24	35	36	34	26	34