HealthEquity, Inc. (HQY) 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

+349.4%

$469.89

vs $104.57 price

Levered DCF

$458.24

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

4.91

Safe zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

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

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	34.27×	99.48×	116.28×	-196.29×	-100.83×	698.75×	111.97×	51.95×
P/B	3.5×	4.54×	3.18×	2.71×	2.4×	4.51×	4.3×	8.08×
P/S	5.62×	7.99×	6.47×	5.96×	5.87×	8.49×	8.32×	13.42×
EV / EBITDA	16.48×	30.82×	24.77×	34.27×	50.75×	44.99×	44.92×	37.16×
Gross margin	69.5%	57.7%	53.0%	45.9%	45.1%	46.2%	54.7%	61.0%
Operating margin	24.6%	19.2%	12.8%	4.4%	5.4%	10.9%	20.5%	27.0%
Net margin	16.4%	8.1%	5.6%	-3.0%	-5.9%	1.2%	7.5%	25.7%
Current ratio	3.27×	3.06×	4.76×	2.92×	2.29×	2.25×	1.96×	13.58×
Debt / equity	0.48×	0.52×	0.46×	0.52×	0.54×	0.78×	1.26×	0×
Interest coverage	5.64×	3.79×	2.31×	0.78×	1.11×	2.29×	4.4×	0×
Dividend yield	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	10.2%	4.6%	2.7%	-1.4%	-2.4%	0.6%	3.8%	15.5%
Return on invested capital	7.6%	5.8%	3.1%	0.9%	0.9%	3.1%	4.1%	15.7%
Return on assets	6.3%	2.8%	1.8%	-0.8%	-1.4%	0.3%	1.5%	14.5%
Free cash flow yield	6.2%	3.5%	3.0%	0.6%	0.1%	1.4%	1.4%	2.6%
Earnings yield	2.9%	1.0%	0.9%	-0.5%	-1.0%	0.1%	0.9%	1.9%
Enterprise value	$8.1B	$10.4B	$7B	$5.9B	$5.2B	$7B	$5.5B	$3.5B
Net debt / EBITDA	1.4×	2.41×	1.87×	4.32×	7.6×	4.82×	9×	-3.85×
Cash conversion cycle (days)	23	26	29	30	18	35	43	21