PriceSmart, Inc. (PSMT) 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

-70.1%

$49.82

vs $166.77 price

Levered DCF

$62.02

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

5.97

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	31.48×	22.25×	19.6×	22.64×	18.72×	26.61×	25.78×	24.97×
P/B	3.53×	2.58×	2.4×	2.21×	1.95×	2.81×	2.39×	2.29×
P/S	0.87×	0.61×	0.55×	0.55×	0.48×	0.71×	0.6×	0.57×
EV / EBITDA	15.21×	10.78×	9.48×	9.82×	8.46×	12.02×	10.93×	10.7×
Gross margin	17.7%	17.4%	17.2%	17.2%	16.7%	17.7%	16.6%	16.4%
Operating margin	4.4%	4.5%	4.6%	4.5%	4.2%	4.4%	3.7%	3.7%
Net margin	2.8%	2.7%	2.8%	2.4%	2.5%	2.7%	2.3%	2.2%
Current ratio	1.24×	1.34×	1.22×	1.38×	1.34×	1.31×	1.23×	1.21×
Debt / equity	0.22×	0.26×	0.22×	0.25×	0.28×	0.29×	0.4×	0.12×
Interest coverage	15.57×	20.5×	17.29×	18.16×	17.67×	22.18×	16.32×	30.2×
Dividend yield	0.8%	1.2%	2.5%	1.2%	1.4%	0.9%	1.1%	1.2%
Payout ratio	25.8%	26.7%	48.3%	26.5%	25.7%	22.7%	27.9%	29.9%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	11.4%	11.6%	12.2%	9.7%	10.4%	10.6%	9.3%	9.1%
Return on invested capital	10.5%	10.6%	11.1%	9.2%	8.8%	8.9%	7.1%	8.5%
Return on assets	6.4%	6.4%	6.8%	5.4%	5.7%	5.7%	4.7%	5.6%
Free cash flow yield	1.9%	3.2%	1.5%	4.7%	0.1%	0.5%	8.0%	1.7%
Earnings yield	3.2%	4.5%	5.1%	4.4%	5.3%	3.8%	3.9%	4.0%
Enterprise value	$5.2B	$3.3B	$2.8B	$2.5B	$2B	$2.6B	$2B	$1.8B
Net debt / EBITDA	0.28×	0.25×	0.42×	0.15×	0.19×	0.3×	0.16×	-0.03×
Cash conversion cycle (days)	5	8	5	3	7	1	-7	7