Sally Beauty Holdings, Inc. (SBH) 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

+6.7%

$19.59

vs $18.36 price

Levered DCF

$10.92

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.93

Grey zone

Rating

A-

Overall 4 / 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	8.35×	9.17×	4.87×	7.46×	7.91×	8.78×	6.56×	8.57×
P/B	2.06×	2.24×	1.77×	4.66×	6.76×	64.08×	-29.53×	-8.22×
P/S	0.44×	0.38×	0.24×	0.36×	0.49×	0.28×	0.46×	0.56×
EV / EBITDA	7.14×	7.37×	5.56×	6.15×	6.49×	7.43×	7.22×	7.29×
Gross margin	51.6%	50.9%	50.8%	50.8%	50.4%	48.8%	49.3%	49.4%
Operating margin	8.9%	7.6%	8.7%	8.8%	10.8%	7.4%	9.0%	10.8%
Net margin	5.3%	4.1%	5.0%	4.8%	6.2%	3.2%	7.0%	6.6%
Current ratio	2.26×	2.2×	2.12×	1.7×	2.08×	2.54×	2.55×	2.35×
Debt / equity	1.97×	2.54×	3.29×	5.91×	6.92×	151.83×	-26.43×	-6.61×
Interest coverage	5.09×	3.7×	4.45×	3.61×	4.47×	2.62×	3.64×	4.35×
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	24.7%	24.4%	36.3%	62.5%	85.4%	733.3%	-450.3%	-96.1%
Return on invested capital	9.9%	9.0%	10.3%	11.9%	13.2%	7.4%	16.0%	20.8%
Return on assets	6.8%	5.5%	6.8%	7.1%	8.4%	3.9%	12.9%	12.3%
Free cash flow yield	10.5%	10.3%	17.6%	4.2%	16.2%	31.9%	11.9%	13.0%
Earnings yield	12.0%	10.9%	20.5%	13.4%	12.6%	11.4%	15.2%	11.7%
Enterprise value	$3.1B	$2.9B	$2.5B	$3B	$3.4B	$2.8B	$3.3B	$3.9B
Net debt / EBITDA	3.31×	3.79×	3.52×	3.37×	2.91×	4.82×	3.33×	3.17×
Cash conversion cycle (days)	167	162	150	135	116	123	135	126