SThree (LSE:STEM) EV-to-EBIT: 15.42 (As of Aug. 01, 2026) — 96% Above Median

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LSE:STEM SThree PLC LSE:STEM
62 GF Score
Price £2.56
GF Value £2.37
Valuation Fairly Valued
! 11 Warning Signs
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What is SThree EV-to-EBIT?

SThree LSE:STEM -1.16% 62 EV-to-EBIT is 15.42 as of Aug. 01, 2026, which is 96% above its 10-year median of 7.86. GuruFocus rates LSE:STEM with a GF Score™ of 62/100 and a GF Value™ of £2.37 (Fairly Valued). The stock has 11 warning signs investors should review. Among 854 Business Services companies, SThree ranks worse than 66.98% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, SThree's Enterprise Value is £316 Mil. SThree's EBIT for the trailing twelve months (TTM) ended in May. 2026 was £21 Mil. Therefore, SThree's EV-to-EBIT for today is 15.42.

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

LSE:STEM' s EV-to-EBIT Range Over the Past 10 Years
Min: 2.38   Med: 7.86   Max: 25.31
Current: 15.42

During the past 13 years, the highest EV-to-EBIT of SThree was 25.31. The lowest was 2.38. And the median was 7.86.

LSE:STEM's EV-to-EBIT is ranked worse than
66.98% of 854 companies
in the Business Services industry
Industry Median: 11.175 vs LSE:STEM: 15.42

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. SThree's Enterprise Value for the quarter that ended in May. 2026 was £211 Mil. SThree's EBIT for the trailing twelve months (TTM) ended in May. 2026 was £21 Mil. SThree's Earnings Yield (Joel Greenblatt) % for the quarter that ended in May. 2026 was 9.70%.


SThree  (LSE:STEM) 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) %.

SThree's Earnings Yield (Joel Greenblatt) % for the quarter that ended in May. 2026 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: May. 2026 ) =EBIT / Enterprise Value (Q: May. 2026 )
=20.514/211.422856
=9.70 %

SThree's Enterprise Value for the quarter that ended in May. 2026 was £211 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. SThree's EBIT for the trailing twelve months (TTM) ended in May. 2026 was £21 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.


SThree EV-to-EBIT Related Terms


SThree EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for SThree'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.

SThree EV-to-EBIT Chart

SThree Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.02 6.61 6.14 6.50 6.92

SThree Semi-Annual Data
Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24 May25 Nov25 May26
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 6.50 0.00 6.92 0.00

LSE:STEM vs KFY, RHI, TNET: EV-to-EBIT Comparison

For the Staffing & Employment Services subindustry, SThree'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.


SThree EV-to-EBIT vs Business Services Industry

For the Business Services industry and Industrials sector, SThree's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where SThree's EV-to-EBIT falls into.


LSE:STEM
62GF Score
SThree PLC LSE:STEM
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

SThree EV-to-EBIT Calculation

SThree's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=316.364/20.514
=15.42

SThree's current Enterprise Value is £316 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. SThree's EBIT for the trailing twelve months (TTM) ended in May. 2026 was £21 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 15.42 mean?
SThree (LSE:STEM) has a EV-to-EBIT of 15.42 as of Aug. 01, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on SThree and its competitors. This is 96% above median its historical median of 7.86. Over the past decade, SThree's EV-to-EBIT has ranged from 2.38 to 25.31. According to the industry distribution chart, SThree ranks #572 out of 854 companies in the Business Services industry, placing it in the top 67%.
Is SThree's EV-to-EBIT too high?
SThree's current EV-to-EBIT of 15.42 is 96% above median its 10-year median of 7.86. Over the past 10 years, this metric has ranged from a low of 2.38 to a high of 25.31. The Business Services industry median EV-to-EBIT is 11.18. SThree's value of 15.42 is 38% above this industry median. Based on the distribution chart, SThree ranks #572 out of 854 companies in the Business Services industry, which is below the industry midpoint. Overall, SThree has a GF Score™ of 62/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SThree's EV-to-EBIT compare to KFY and RHI?
According to the Business Services industry distribution chart, SThree ranks #572 out of 854 companies for EV-to-EBIT. This places SThree in the lower half of its industry. The industry median EV-to-EBIT is 11.18. SThree's value of 15.42 is 38% above this benchmark. Historically, SThree's own EV-to-EBIT has ranged from 2.38 to 25.31 over the past decade. While the company's 10-year median is 7.86 vs. the industry median of 11.18, SThree has consistently been above 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 a Business Services company?
The median EV-to-EBIT among Business Services companies is 11.18, based on 854 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. SThree's current EV-to-EBIT of 15.42 is 38% above 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 SThree and its competitors. For the Business Services industry, the median EV-to-EBIT is 11.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SThree's current EV-to-EBIT is 15.42, which is 96% above median its own 10-year median of 7.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SThree stock overvalued right now?
Based on GuruFocus' analysis, SThree (LSE:STEM) is currently considered Fairly Valued. The stock's GF Value™ is £2.37, compared to a current price of £2.56 — trading 7.8% above its estimated fair value. The current EV-to-EBIT is 15.42, which is 96% above median its 10-year median of 7.86 and 38% above the Business Services industry median of 11.18. SThree's overall GF Score™ is 62/100 with 11 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 SThree (LSE:STEM), the current EV-to-EBIT is 15.42 as of Aug. 01, 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 SThree (LSE:STEM) Overvalued in 2026?

Based on GuruFocus' analysis, SThree stock appears to be overvalued. The current stock price of £2.56 is trading 7.8% above its estimated GF Value™ of £2.37. GuruFocus considers SThree to be Fairly Valued.

Key valuation signals for LSE:STEM:

  • EV-to-EBIT: 15.42 (96% above median its 10-year median of 7.86)
  • GF Value™: £2.37 vs. price of £2.56 (7.8% above fair value)
  • GF Score™: 62/100 with 11 warning signs
  • Industry Position: 38% above the Business Services median (#572 of 854)

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


SThree Business Description

Other Exchanges STEMl:UK
Address 8 Bishopsgate, Level 16, London, GBR, EC2N 4BQ
SThree PLC is involved in the staffing business. It provides contract and permanent recruitment services. The company operates in information and communication, engineering, energy, life sciences, banking, and finance sectors. It provides its service through various brands such as Progressive, Computer Futures, Real Staffing Group, and Huxley Associates. The company generated its revenue from DACH, Rest of Europe, Netherlands including Spain, USA, Middle East & Asia.
62GF Score

Get the complete analysis for LSE:STEM

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

£2.56
Price
£2.37
GF Value