Kip McGrath Education Centres (ASX:KME) EV-to-OCF: 4.61 (As of Aug. 05, 2026) — 35% Below Median

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ASX:KME Kip McGrath Education Centres Ltd ASX:KME
55 GF Score
Price A$0.71
GF Value A$0.55
Valuation Modestly Overvalued
! 4 Warning Signs
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What is Kip McGrath Education Centres EV-to-OCF?

Kip McGrath Education Centres ASX:KME 55 EV-to-OCF is 4.61 as of Aug. 05, 2026, which is 35% below its 10-year median of 7.04. GuruFocus rates ASX:KME with a GF Score™ of 55/100 and a GF Value™ of A$0.55 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 261 Education companies, Kip McGrath Education Centres ranks better than 67.43% on this metric.

EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Kip McGrath Education Centres's Enterprise Value is A$31.45 Mil. Kip McGrath Education Centres's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was A$6.82 Mil. Therefore, Kip McGrath Education Centres's EV-to-OCF for today is 4.61.

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

ASX:KME' s EV-to-OCF Range Over the Past 10 Years
Min: 1.73   Med: 7.04   Max: 21.06
Current: 2.84

During the past 13 years, the highest EV-to-OCF of Kip McGrath Education Centres was 21.06. The lowest was 1.73. And the median was 7.04.

ASX:KME's EV-to-OCF is ranked better than
67.43% of 261 companies
in the Education industry
Industry Median: 6.13 vs ASX:KME: 2.84

EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.

As of today (2026-08-05), Kip McGrath Education Centres's stock price is A$0.71. Kip McGrath Education Centres's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was A$-0.073. Therefore, Kip McGrath Education Centres's PE Ratio (TTM) for today is At Loss.


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

EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.

Kip McGrath Education Centres's PE Ratio (TTM) for today is calculated as:

PE Ratio (TTM)=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=0.71/-0.073
=At Loss

Kip McGrath Education Centres's share price for today is A$0.71.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Kip McGrath Education Centres's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Dec. 2025 was A$-0.073.

* 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.

Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.


Kip McGrath Education Centres EV-to-OCF Related Terms


Kip McGrath Education Centres EV-to-OCF Historical Data

* Premium members only.

The historical data trend for Kip McGrath Education Centres's EV-to-OCF 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-OCF Chart

Kip McGrath Education Centres Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
EV-to-OCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.81 10.30 3.36 5.46 4.57

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-OCF 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 5.46 0.00 4.57 0.00

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

For the Education & Training Services subindustry, Kip McGrath Education Centres's EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Education Industry

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

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


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

Kip McGrath Education Centres EV-to-OCF Calculation

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

EV-to-OCF=Enterprise Value (Today)/Cash Flow from Operations (TTM)
=31.454/6.822
=4.61

Kip McGrath Education Centres's current Enterprise Value is A$31.45 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Kip McGrath Education Centres's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was A$6.82 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-OCF →
What does a EV-to-OCF of 4.61 mean?
Kip McGrath Education Centres (ASX:KME) has a EV-to-OCF of 4.61 as of Aug. 05, 2026. This is 35% below median its historical median of 7.04. Over the past decade, Kip McGrath Education Centres' EV-to-OCF has ranged from 1.73 to 21.06. According to the industry distribution chart, Kip McGrath Education Centres ranks #85 out of 261 companies in the Education industry, placing it in the top 32.6%.
Is Kip McGrath Education Centres' EV-to-OCF too high?
Kip McGrath Education Centres' current EV-to-OCF of 4.61 is 35% below median its 10-year median of 7.04. Over the past 10 years, this metric has ranged from a low of 1.73 to a high of 21.06. The Education industry median EV-to-OCF is 6.13. Kip McGrath Education Centres' value of 4.61 is 24.8% below this industry median. Based on the distribution chart, Kip McGrath Education Centres ranks #85 out of 261 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 Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kip McGrath Education Centres' EV-to-OCF compare to EDU and TAL?
According to the Education industry distribution chart, Kip McGrath Education Centres ranks #85 out of 261 companies for EV-to-OCF. This puts Kip McGrath Education Centres in the upper half of its industry. The industry median EV-to-OCF is 6.13. Kip McGrath Education Centres' value of 4.61 is 24.8% below this benchmark. Historically, Kip McGrath Education Centres' own EV-to-OCF has ranged from 1.73 to 21.06 over the past decade. While the company's 10-year median is 7.04 vs. the industry median of 6.13, 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-OCF for an Education company?
The median EV-to-OCF among Education companies is 6.13, based on 261 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF 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-OCF of 4.61 is 24.8% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Education industry, the median EV-to-OCF is 6.13 — 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-OCF is 4.61, which is 35% below median its own 10-year median of 7.04. 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 Overvalued. The stock's GF Value™ is A$0.55, compared to a current price of A$0.71 — trading 29.1% above its estimated fair value. The current EV-to-OCF is 4.61, which is 35% below median its 10-year median of 7.04 and 24.8% below the Education industry median of 6.13. 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Kip McGrath Education Centres (ASX:KME), the current EV-to-OCF is 4.61 as of Aug. 05, 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 overvalued. The current stock price of A$0.71 is trading 29.1% above its estimated GF Value™ of A$0.55. GuruFocus considers Kip McGrath Education Centres to be Modestly Overvalued.

Key valuation signals for ASX:KME:

  • EV-to-OCF: 4.61 (35% below median its 10-year median of 7.04)
  • GF Value™: A$0.55 vs. price of A$0.71 (29.1% above fair value)
  • GF Score™: 55/100 with 4 warning signs
  • Industry Position: 24.8% below the Education median (#85 of 261)

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

A$0.71
Price
A$0.55
GF Value