Kip McGrath Education Centres (ASX:KME) EV-to-EBIT: 4.71 (As of Jul. 25, 2026) — 59% Below Median

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ASX:KME Kip McGrath Education Centres Ltd ASX:KME
55 GF Score
Price A$0.48
GF Value A$0.55
Valuation Modestly Undervalued
! 4 Warning Signs
View Full Analysis

What is Kip McGrath Education Centres EV-to-EBIT?

Kip McGrath Education Centres ASX:KME 55 EV-to-EBIT is 4.71 as of Jul. 25, 2026, which is 59% below its 10-year median of 11.56. GuruFocus rates ASX:KME with a GF Score™ of 55/100 and a GF Value™ of A$0.55 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 198 Education companies, Kip McGrath Education Centres ranks better than 74.24% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Kip McGrath Education Centres's Enterprise Value is A$19.38 Mil. Kip McGrath Education Centres's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was A$4.11 Mil. Therefore, Kip McGrath Education Centres's EV-to-EBIT for today is 4.71.

The historical rank and industry rank for Kip McGrath Education Centres's EV-to-EBIT or its related term are showing as below:

ASX:KME' s EV-to-EBIT Range Over the Past 10 Years
Min: 4.3   Med: 11.56   Max: 28.32
Current: 4.72

During the past 13 years, the highest EV-to-EBIT of Kip McGrath Education Centres was 28.32. The lowest was 4.30. And the median was 11.56.

ASX:KME's EV-to-EBIT is ranked better than
74.24% of 198 companies
in the Education industry
Industry Median: 9.735 vs ASX:KME: 4.72

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. Kip McGrath Education Centres's Enterprise Value for the quarter that ended in Dec. 2025 was A$26.62 Mil. Kip McGrath Education Centres's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was A$4.11 Mil. Kip McGrath Education Centres's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 15.45%.


Kip McGrath Education Centres  (ASX:KME) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

Kip McGrath Education Centres's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Dec. 2025 ) =EBIT / Enterprise Value (Q: Dec. 2025 )
=4.113/26.61606
=15.45 %

Kip McGrath Education Centres's Enterprise Value for the quarter that ended in Dec. 2025 was A$26.62 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Kip McGrath Education Centres's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was A$4.11 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Kip McGrath Education Centres EV-to-EBIT Related Terms


Kip McGrath Education Centres EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for Kip McGrath Education Centres's EV-to-EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Kip McGrath Education Centres EV-to-EBIT Chart

Kip McGrath Education Centres Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.29 19.92 8.33 8.51 9.24

Kip McGrath Education Centres Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EV-to-EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 8.51 0.00 9.24 0.00

ASX:KME vs EDU, TAL, LAUR: EV-to-EBIT Comparison

For the Education & Training Services subindustry, Kip McGrath Education Centres's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Kip McGrath Education Centres EV-to-EBIT vs Education Industry

For the Education industry and Consumer Defensive sector, Kip McGrath Education Centres's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Kip McGrath Education Centres's EV-to-EBIT falls into.


ASX:KME
55GF Score
Kip McGrath Education Centres Ltd ASX:KME
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kip McGrath Education Centres EV-to-EBIT Calculation

Kip McGrath Education Centres's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=19.382/4.113
=4.71

Kip McGrath Education Centres's current Enterprise Value is A$19.38 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Kip McGrath Education Centres's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was A$4.11 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EV-to-EBIT →
What does a EV-to-EBIT of 4.71 mean?
Kip McGrath Education Centres (ASX:KME) has a EV-to-EBIT of 4.71 as of Jul. 25, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Kip McGrath Education Centres and its competitors. This is 59% below median its historical median of 11.56. Over the past decade, Kip McGrath Education Centres' EV-to-EBIT has ranged from 4.30 to 28.32. According to the industry distribution chart, Kip McGrath Education Centres ranks #51 out of 198 companies in the Education industry, placing it in the top 25.8%.
Is Kip McGrath Education Centres' EV-to-EBIT too high?
Kip McGrath Education Centres' current EV-to-EBIT of 4.71 is 59% below median its 10-year median of 11.56. Over the past 10 years, this metric has ranged from a low of 4.30 to a high of 28.32. The Education industry median EV-to-EBIT is 9.74. Kip McGrath Education Centres' value of 4.71 is 51.6% below this industry median. Based on the distribution chart, Kip McGrath Education Centres ranks #51 out of 198 companies in the Education industry, which is above the industry midpoint. Overall, Kip McGrath Education Centres has a GF Score™ of 55/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kip McGrath Education Centres' EV-to-EBIT compare to EDU and TAL?
According to the Education industry distribution chart, Kip McGrath Education Centres ranks #51 out of 198 companies for EV-to-EBIT. This puts Kip McGrath Education Centres in the upper half of its industry. The industry median EV-to-EBIT is 9.74. Kip McGrath Education Centres' value of 4.71 is 51.6% below this benchmark. Historically, Kip McGrath Education Centres' own EV-to-EBIT has ranged from 4.30 to 28.32 over the past decade. While the company's 10-year median is 11.56 vs. the industry median of 9.74, Kip McGrath Education Centres has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for an Education company?
The median EV-to-EBIT among Education companies is 9.74, based on 198 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kip McGrath Education Centres's current EV-to-EBIT of 4.71 is 51.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Kip McGrath Education Centres and its competitors. For the Education industry, the median EV-to-EBIT is 9.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kip McGrath Education Centres's current EV-to-EBIT is 4.71, which is 59% below median its own 10-year median of 11.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kip McGrath Education Centres stock overvalued right now?
Based on GuruFocus' analysis, Kip McGrath Education Centres (ASX:KME) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.55, compared to a current price of A$0.48 — trading 12.7% below its estimated fair value. The current EV-to-EBIT is 4.71, which is 59% below median its 10-year median of 11.56 and 51.6% below the Education industry median of 9.74. Kip McGrath Education Centres' overall GF Score™ is 55/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Kip McGrath Education Centres (ASX:KME), the current EV-to-EBIT is 4.71 as of Jul. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Kip McGrath Education Centres (ASX:KME) Overvalued in 2026?

Based on GuruFocus' analysis, Kip McGrath Education Centres stock appears to be undervalued. The current stock price of A$0.48 is trading 12.7% below its estimated GF Value™ of A$0.55. GuruFocus considers Kip McGrath Education Centres to be Modestly Undervalued.

Key valuation signals for ASX:KME:

  • EV-to-EBIT: 4.71 (59% below median its 10-year median of 11.56)
  • GF Value™: A$0.55 vs. price of A$0.48 (12.7% below fair value)
  • GF Score™: 55/100 with 4 warning signs
  • Industry Position: 51.6% below the Education median (#51 of 198)

No single metric tells the full story. See the ASX:KME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Kip McGrath Education Centres Business Description

Address 31 Market Street, Suite 2.02, Level 2, Sydney, NSW, AUS, 2000
Kip McGrath Education Centres Ltd offers supplementary education to students through the franchise in Australia and overseas, in the United Kingdom and New Zealand. Its products are face-to-face tuition programs, direct at-home educational products, and online tertiary courses. Geographically, the company operates in Australasia, the United Kingdom and Europe, and Other overseas regions. It derives revenue from franchise fees, student lesson fees, sales of master territories and franchise centers, and direct sales, of which a majority of the revenue is derived from franchise fees.
55GF Score

Get the complete analysis for ASX:KME

EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$0.48
Price
A$0.55
GF Value