Kimball Electronics, Inc. (KE) 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

-121.7%

-$5.70

vs $26.24 price

Levered DCF

-$8.91

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.1

Safe zone

Rating

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	22.65×	28.28×	26.29×	12.33×	16.21×	9.62×	18.81×	13.11×
P/B	1.08×	0.84×	1×	1.31×	1.11×	1.23×	0.9×	1.12×
P/S	0.44×	0.32×	0.32×	0.38×	0.37×	0.42×	0.28×	0.35×
EV / EBITDA	13.34×	6.86×	8.8×	7.51×	8.38×	4.76×	6.53×	6.87×
Gross margin	8.6%	7.0%	8.2%	8.6%	7.8%	9.1%	7.0%	7.5%
Operating margin	4.6%	3.1%	2.9%	4.8%	3.9%	5.1%	2.7%	3.6%
Net margin	2.0%	1.1%	1.2%	3.1%	2.3%	4.4%	1.5%	2.7%
Current ratio	2.09×	2.2×	2.26×	1.96×	1.86×	1.94×	2.05×	2.02×
Debt / equity	0.2×	0.26×	0.55×	0.54×	0.4×	0.15×	0.31×	0.34×
Interest coverage	6.01×	3.09×	1.82×	4.17×	12.35×	30.35×	7.24×	10.34×
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	4.8%	3.0%	3.8%	10.7%	6.9%	12.8%	4.8%	8.5%
Return on invested capital	6.2%	3.8%	4.5%	7.9%	5.7%	9.9%	4.4%	6.6%
Return on assets	2.6%	1.6%	1.7%	4.4%	3.0%	7.0%	2.3%	4.1%
Free cash flow yield	3.3%	31.5%	5.0%	-15.2%	-31.3%	16.6%	10.0%	-7.9%
Earnings yield	4.4%	3.6%	3.8%	8.1%	6.2%	10.4%	5.3%	7.6%
Enterprise value	$663M	$534.8M	$757.6M	$926.6M	$635.5M	$505.2M	$394.9M	$490.4M
Net debt / EBITDA	0.6×	0.75×	2.52×	1.93×	1.72×	-0.38×	0.88×	1.08×
Cash conversion cycle (days)	84	87	105	105	106	65	81	88