SLM Corporation (SLM) 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

+89.4%

$33.86

vs $17.88 price

Levered DCF

-$7.63

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

-0.02

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	7.69×	10.1×	7.84×	9.33×	5.36×	5.46×	6.6×	7.69×
P/B	2.29×	2.76×	2.35×	2.48×	2.88×	1.86×	1.15×	1.22×
P/S	1.8×	2×	1.56×	1.81×	2.57×	2.03×	1.6×	1.92×
EV / EBITDA	7.16×	9.44×	6.38×	7.49×	5.01×	4.69×	3.81×	9.32×
Gross margin	53.1%	48.2%	51.6%	50.3%	85.5%	72.9%	55.4%	59.3%
Operating margin	31.9%	26.7%	27.4%	26.7%	63.9%	49.3%	31.3%	29.7%
Net margin	24.0%	20.4%	20.5%	19.8%	48.2%	37.6%	24.3%	25.9%
Current ratio	0.28×	0.4×	0.38×	0.4×	0.4×	0.36×	0.31×	0.21×
Debt / equity	2.39×	2.98×	2.78×	3.03×	2.76×	2.02×	1.4×	1.44×
Interest coverage	0.88×	0.7×	0.76×	1.16×	4.03×	2.13×	1.05×	1.07×
Dividend yield	12.5%	2.0%	2.7%	2.8%	1.1%	1.2%	1.8%	0.4%
Payout ratio	94.0%	19.3%	20.5%	26.0%	5.6%	6.4%	11.8%	3.2%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	30.4%	28.2%	30.9%	27.2%	54.0%	34.4%	17.5%	16.4%
Return on invested capital	8.6%	6.8%	7.7%	6.4%	13.8%	10.9%	7.0%	6.5%
Return on assets	2.5%	2.0%	2.0%	1.6%	4.0%	2.9%	1.8%	1.8%
Free cash flow yield	10.3%	-5.5%	-3.3%	0.1%	-0.8%	45.2%	-0.4%	-2.8%
Earnings yield	13.3%	10.2%	13.1%	10.9%	18.7%	18.5%	15.2%	13.5%
Enterprise value	$7.2B	$7.7B	$5.5B	$4.9B	$7.8B	$5.5B	$2.9B	$5.3B
Net debt / EBITDA	1.61×	2.13×	1.25×	0.94×	1.03×	0.63×	-1.21×	3.01×
Cash conversion cycle (days)	183	189	224	244	220	278	231	247