Lifeway Foods, Inc. (LWAY) 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

+72.7%

$38.46

vs $22.28 price

Levered DCF

$17.08

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

7.65

Safe zone

Rating

Overall 3 / 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	26.63×	40.66×	17.19×	92.5×	21.9×	25.76×	69.1×	-9.89×
P/B	4.29×	5.09×	3.25×	1.8×	1.45×	1.8×	0.72×	0.7×
P/S	1.73×	1.96×	1.23×	0.6×	0.6×	0.83×	0.33×	0.29×
EV / EBITDA	15.3×	20.03×	9.23×	17.26×	8.1×	9.72×	6.43×	75.14×
Gross margin	27.4%	26.0%	26.5%	18.9%	24.1%	26.4%	23.6%	25.0%
Operating margin	7.6%	7.4%	10.6%	1.7%	4.9%	4.8%	-2.1%	-3.0%
Net margin	6.5%	4.8%	7.1%	0.7%	2.8%	3.2%	0.5%	-3.0%
Current ratio	2.23×	2.81×	2.3×	2.07×	2.41×	2.85×	2.02×	2.54×
Debt / equity	0.01×	0×	0.05×	0.14×	0.15×	0.07×	0.08×	0.14×
Interest coverage	210.03×	131.92×	44.26×	8.8×	50.69×	41.72×	-7.76×	-11.48×
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	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	16.1%	12.6%	18.8%	1.9%	6.7%	6.9%	1.0%	-7.3%
Return on invested capital	12.8%	11.9%	17.2%	2.1%	5.7%	6.1%	-1.4%	-5.9%
Return on assets	13.1%	10.0%	13.8%	1.3%	4.6%	5.2%	0.8%	-5.4%
Free cash flow yield	-4.5%	1.7%	6.4%	0.6%	5.1%	5.3%	8.4%	-1.4%
Earnings yield	3.8%	2.5%	5.8%	1.1%	4.6%	3.8%	1.4%	-10.3%
Enterprise value	$363.2M	$349.7M	$186.4M	$87.7M	$69.7M	$79.6M	$31M	$32.8M
Net debt / EBITDA	-0.22×	-0.95×	-0.51×	0.44×	-0.21×	-0.59×	-0.07×	6.86×
Cash conversion cycle (days)	31	27	29	35	38	35	34	38