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RMCHIX:RML 43 EV-to-OCF is 26.59 as of Jul. 31, 2026, which is 114% above its 10-year median of 12.41. GuruFocus rates CHIX:RML with a GF Score™ of 43/100 and a GF Value™ of £0.82 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 2,878 Software companies, RM ranks worse than 82.52% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, RM's Enterprise Value is £170.0 Mil.
RM's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2026 was £6.4 Mil. Therefore, RM's EV-to-OCF for today is 26.59.
The historical rank and industry rank for RM's EV-to-OCF or its related term are showing as below:
CHIX:RMl'
s EV-to-OCF Range Over the Past 10 Years
Min: -53.67 Med: 12.41 Max: 45.96
Current: 26.14
During the past 13 years, the highest EV-to-OCF of RM was 45.96. The lowest was -53.67. And the median was 12.41.
CHIX:RMl's EV-to-OCF is ranked worse than 82.52% of 2878
companies
in the Software industry
Industry Median: 6.66
vs CHIX:RMl: 26.14
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 (2026-07-31), RM's stock price is £0.98.
RM's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2026 was £0.044. Therefore, RM's PE Ratio (TTM) for today is 22.27.
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.
RM's share price for today is £0.98.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. RM's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2026 was £0.044.
* 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.
RM EV-to-OCF Related Terms
RM EV-to-OCF Historical Data
* Premium members only.
The historical data trend for RM'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.
For the Software - Application subindustry, RM'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.
RM EV-to-OCF vs Software Industry
For the Software industry and Technology sector, RM's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where RM's EV-to-OCF falls into.
RM's current Enterprise Value is £170.0 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. RM's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2026 was £6.4 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.
RM (CHIX:RML) has a EV-to-OCF of 26.59 as of Jul. 31, 2026. This is 114% above median its historical median of 12.41. According to the industry distribution chart, RM ranks #2375 out of 2878 companies in the Software industry, placing it in the top 82.5%.
Is RM's EV-to-OCF too high?
RM's current EV-to-OCF of 26.59 is 114% above median its 10-year median of 12.41. The Software industry median EV-to-OCF is 6.66. RM's value of 26.59 is 299.2% above this industry median. Based on the distribution chart, RM ranks #2375 out of 2878 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, RM has a GF Score™ of 43/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does RM's EV-to-OCF compare to QH and SHOP?
According to the Software industry distribution chart, RM ranks #2375 out of 2878 companies for EV-to-OCF. This places RM in the lower half of its industry. The industry median EV-to-OCF is 6.66. RM's value of 26.59 is 299.2% above this benchmark. While the company's 10-year median is 12.41 vs. the industry median of 6.66, RM 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-OCF for a Software company?
The median EV-to-OCF among Software companies is 6.66, based on 2,878 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. RM's current EV-to-OCF of 26.59 is 299.2% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Software industry, the median EV-to-OCF is 6.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. RM's current EV-to-OCF is 26.59, which is 114% above median its own 10-year median of 12.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RM stock overvalued right now?
Based on GuruFocus' analysis, RM (CHIX:RML) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.82, compared to a current price of £0.98 — trading 19.5% above its estimated fair value. The current EV-to-OCF is 26.59, which is 114% above median its 10-year median of 12.41 and 299.2% above the Software industry median of 6.66. RM's overall GF Score™ is 43/100 with 3 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 RM (CHIX:RML), the current EV-to-OCF is 26.59 as of Jul. 31, 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 RM (CHIX:RML) Overvalued in 2026?
Based on GuruFocus' analysis, RM stock appears to be overvalued.
The current stock price of £0.98 is trading 19.5% above its estimated GF Value™ of £0.82.
GuruFocus considers RM to be Modestly Overvalued.
Key valuation signals for CHIX:RML:
EV-to-OCF: 26.59 (114% above median its 10-year median of 12.41)
GF Value™: £0.82 vs. price of £0.98 (19.5% above fair value)
Industry Position: 299.2% above the Software median (#2375 of 2878)
No single metric tells the full story. See the CHIX:RML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
RM PLC supplies products, services, and solutions to the UK and international education markets. Its activities include the supply of products and software licences, rendering of services, and delivery of its own platform solutions, along with digital assessment and exam marking solutions, IT managed services and connectivity packages, and curriculum-aligned learning resources. The Group is structured into three operating divisions: RM TTS, RM Assessment, and RM Technology. It operates in the UK, Europe, North America, Asia, the Middle East, and the rest of the world, with the majority of revenue coming from the UK and the RM TTS segment.
43GF Score
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