Nelnet, Inc. (NNI) 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

+202.2%

$376.22

vs $124.51 price

Levered DCF

$438.09

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

0.79

Distress 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	11.48×	21.28×	36.91×	8.54×	9.58×	7.9×	16.45×	9.28×
P/B	1.31×	1.17×	1.01×	1.07×	1.26×	1.04×	0.96×	0.92×
P/S	2.13×	2.12×	1.82×	1.88×	2.61×	2×	1.37×	1.26×
EV / EBITDA	10.46×	33.31×	69.88×	26.44×	33.46×	33.84×	61.44×	51.41×
Gross margin	87.0%	60.2%	53.0%	74.4%	88.4%	71.3%	56.0%	58.8%
Operating margin	50.6%	12.4%	3.8%	27.6%	35.4%	32.8%	10.5%	17.0%
Net margin	18.9%	10.0%	5.0%	22.4%	27.7%	25.7%	8.5%	13.6%
Current ratio	382.15×	0.64×	0.56×	0.71×	1.28×	0.86×	0.3×	0×
Debt / equity	2.11×	2.48×	3.64×	4.58×	5.98×	7.35×	8.6×	9.64×
Interest coverage	2.3×	0.34×	0.08×	1.17×	2.85×	1.36×	0.25×	0.43×
Dividend yield	0.9%	1.0%	1.2%	1.1%	0.9%	1.2%	1.3%	1.3%
Payout ratio	10.0%	22.2%	43.9%	9.0%	8.8%	9.0%	20.8%	11.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	11.6%	5.5%	2.8%	12.7%	13.3%	13.4%	5.9%	9.9%
Return on invested capital	6.2%	1.4%	0.3%	2.1%	1.8%	1.5%	0.6%	8.6%
Return on assets	3.0%	1.3%	0.5%	2.1%	1.8%	1.6%	0.6%	0.9%
Free cash flow yield	8.2%	16.4%	10.9%	18.3%	11.4%	8.6%	9.0%	6.9%
Earnings yield	8.9%	4.7%	2.7%	11.9%	10.6%	12.8%	6.2%	10.8%
Enterprise value	$11.7B	$12B	$15B	$17.9B	$21.2B	$22B	$22.7B	$24.2B
Net debt / EBITDA	6.12×	22.47×	54.46×	21.41×	27.62×	29.61×	55.21×	46.92×
Cash conversion cycle (days)	135	28	35	17	32	-6	2	132