The RMR Group Inc. (RMR) 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

+46.1%

$24.83

vs $17.00 price

Levered DCF

$80.18

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

2.7

Grey zone

Rating

B+

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	15.27×	18.39×	7.13×	5×	6.72×	6.7×	4.34×	15.51×
P/B	1.15×	1.77×	1.68×	1.87×	2.79×	1.5×	2.54×	6.4×
P/S	0.37×	0.47×	0.42×	0.46×	0.9×	0.75×	1.03×	3.68×
EV / EBITDA	6.58×	5.61×	1.09×	2.49×	5.32×	1.52×	2.59×	5.43×
Gross margin	76.9%	32.1%	31.8%	31.7%	39.1%	38.8%	34.2%	73.1%
Operating margin	6.0%	5.0%	11.8%	10.6%	11.9%	11.7%	27.7%	62.2%
Net margin	2.5%	2.6%	5.9%	4.1%	5.9%	4.9%	23.7%	23.7%
Current ratio	1.64×	2.2×	3.66×	2.78×	3.14×	5.58×	4.74×	10.46×
Debt / equity	0.9×	0.48×	0.13×	0.15×	0.17×	0.12×	0.55×	0.74×
Interest coverage	12.29×	57.44×	0×	0×	0×	0×	0×	0×
Dividend yield	11.6%	6.8%	6.6%	6.6%	25.7%	5.6%	3.1%	1.1%
Payout ratio	172.5%	122.9%	46.5%	75.7%	391.6%	86.1%	13.4%	16.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.7%	9.7%	23.8%	16.5%	18.3%	9.7%	58.6%	41.3%
Return on invested capital	5.5%	6.5%	20.2%	17.2%	14.7%	9.6%	29.9%	41.7%
Return on assets	2.4%	3.3%	9.8%	6.3%	7.2%	4.2%	25.3%	19.0%
Free cash flow yield	27.5%	13.7%	26.1%	25.9%	13.0%	17.3%	26.9%	15.3%
Earnings yield	6.7%	5.5%	14.2%	8.8%	6.6%	6.5%	23.0%	6.5%
Enterprise value	$403.6M	$392.3M	$164.9M	$228.3M	$418.3M	$111.6M	$534.2M	$1.4B
Net debt / EBITDA	2.31×	-0.39×	-1.58×	-1.73×	-1.6×	-4.55×	-0.97×	-0.32×
Cash conversion cycle (days)	-27	36	26	34	35	31	30	-57