KinderCare Learning Companies, Inc. (KLC) 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

-155.0%

-$1.16

vs $2.12 price

Levered DCF

$10.34

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.27

Distress zone

Rating

C+

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	-4.38×	-18.55×	29.03×	13.61×	33.94×	-23.12×	-102.55×	-82.04×
P/B	0.65×	1.98×	5.9×	7.33×	11.69×	21.93×	12.53×	0×
P/S	0.18×	0.64×	1.19×	1.38×	1.65×	2.19×	1.59×	1.78×
EV / EBITDA	25.17×	19.27×	14.1×	32.45×	40.35×	-1,201.19×	30.54×	0×
Gross margin	17.6%	23.7%	27.3%	20.5%	20.4%	12.1%	21.6%	20.6%
Operating margin	6.7%	3.0%	11.0%	18.0%	11.7%	-5.2%	3.4%	2.7%
Net margin	-4.1%	-3.5%	4.1%	10.1%	4.9%	-9.5%	-1.6%	-2.2%
Current ratio	0.74×	0.52×	0.66×	0.57×	0.8×	0.41×	0.36×	0×
Debt / equity	3.34×	2.77×	5.31×	7.01×	11.29×	20.91×	11.53×	0×
Interest coverage	2.19×	0.47×	1.8×	3.84×	2.2×	-0.71×	0.63×	0.49×
Dividend yield	0.0%	18.7%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Payout ratio	0.0%	-344.7%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-14.9%	-10.7%	20.2%	53.8%	34.6%	-95.0%	-12.2%	0.0%
Return on invested capital	5.4%	2.3%	6.4%	8.7%	5.0%	-1.8%	2.1%	0.0%
Return on assets	-3.0%	-2.5%	2.8%	6.0%	2.5%	-4.0%	-0.9%	0.0%
Free cash flow yield	22.4%	-1.0%	5.8%	6.8%	3.9%	-1.2%	0.8%	0.1%
Earnings yield	-22.9%	-5.4%	3.4%	7.3%	3.0%	-4.3%	-1.0%	-1.2%
Enterprise value	$2.9B	$4B	$5.5B	$5.7B	$5.7B	$5.8B	$5.7B	$0
Net debt / EBITDA	20.87×	11.1×	6.47×	15.56×	19.19×	-580.68×	14.52×	0×
Cash conversion cycle (days)	15	8	4	4	7	4	5	0