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DiplomaLSE:DPLM +1.32%94 EV-to-OCF is 37.32 as of Aug. 05, 2026, which is 30% above its 10-year median of 28.68. GuruFocus rates LSE:DPLM with a GF Score™ of 94/100 and a GF Value™ of £57.85 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 157 Industrial Distribution companies, Diploma ranks worse than 89.81% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Diploma's Enterprise Value is £10,595 Mil.
Diploma's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was £284 Mil. Therefore, Diploma's EV-to-OCF for today is 37.32.
The historical rank and industry rank for Diploma's EV-to-OCF or its related term are showing as below:
LSE:DPLM'
s EV-to-OCF Range Over the Past 10 Years
Min: 16.91 Med: 28.68 Max: 40.15
Current: 37.06
During the past 13 years, the highest EV-to-OCF of Diploma was 40.15. The lowest was 16.91. And the median was 28.68.
LSE:DPLM's EV-to-OCF is ranked worse than 89.81% of 157
companies
in the Industrial Distribution industry
Industry Median: 8.91
vs LSE:DPLM: 37.06
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.
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.
Diploma's share price for today is £76.75.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Diploma's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Mar. 2026 was £1.408.
* 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.
Diploma EV-to-OCF Related Terms
Diploma EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Diploma'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 Industrial Distribution subindustry, Diploma'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.
Diploma EV-to-OCF vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Diploma's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Diploma's EV-to-OCF falls into.
Diploma's current Enterprise Value is £10,595 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Diploma's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was £284 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.
Diploma (LSE:DPLM) has a EV-to-OCF of 37.32 as of Aug. 05, 2026. This is 30% above median its historical median of 28.68. Over the past decade, Diploma's EV-to-OCF has ranged from 16.91 to 40.15. According to the industry distribution chart, Diploma ranks #141 out of 157 companies in the Industrial Distribution industry, placing it in the top 89.8%.
Is Diploma's EV-to-OCF too high?
Diploma's current EV-to-OCF of 37.32 is 30% above median its 10-year median of 28.68. Over the past 10 years, this metric has ranged from a low of 16.91 to a high of 40.15. The Industrial Distribution industry median EV-to-OCF is 8.91. Diploma's value of 37.32 is 318.9% above this industry median. Based on the distribution chart, Diploma ranks #141 out of 157 companies in the Industrial Distribution industry, which is in the bottom quartile relative to peers. Overall, Diploma has a GF Score™ of 94/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diploma's EV-to-OCF compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Diploma ranks #141 out of 157 companies for EV-to-OCF. This places Diploma in the lower half of its industry. The industry median EV-to-OCF is 8.91. Diploma's value of 37.32 is 318.9% above this benchmark. Historically, Diploma's own EV-to-OCF has ranged from 16.91 to 40.15 over the past decade. While the company's 10-year median is 28.68 vs. the industry median of 8.91, Diploma 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 an Industrial Distribution company?
The median EV-to-OCF among Industrial Distribution companies is 8.91, based on 157 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. Diploma's current EV-to-OCF of 37.32 is 318.9% 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 Industrial Distribution industry, the median EV-to-OCF is 8.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diploma's current EV-to-OCF is 37.32, which is 30% above median its own 10-year median of 28.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diploma stock overvalued right now?
Based on GuruFocus' analysis, Diploma (LSE:DPLM) is currently considered Significantly Overvalued. The stock's GF Value™ is £57.85, compared to a current price of £76.75 — trading 32.7% above its estimated fair value. The current EV-to-OCF is 37.32, which is 30% above median its 10-year median of 28.68 and 318.9% above the Industrial Distribution industry median of 8.91. Diploma's overall GF Score™ is 94/100 with 7 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 Diploma (LSE:DPLM), the current EV-to-OCF is 37.32 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 Diploma (LSE:DPLM) Overvalued in 2026?
Based on GuruFocus' analysis, Diploma stock appears to be overvalued.
The current stock price of £76.75 is trading 32.7% above its estimated GF Value™ of £57.85.
GuruFocus considers Diploma to be Significantly Overvalued.
Key valuation signals for LSE:DPLM:
EV-to-OCF: 37.32 (30% above median its 10-year median of 28.68)
GF Value™: £57.85 vs. price of £76.75 (32.7% above fair value)
Industry Position: 318.9% above the Industrial Distribution median (#141 of 157)
No single metric tells the full story. See the LSE:DPLM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diploma PLC is a group of businesses supplying specialised technical products and services to various industries. The Group is organized into three main reportable business sectors: Controls, Seals and Life Sciences. The company offers consumables, instrumentation, and related services to the healthcare and environmental industries; seals, gaskets, filters, cylinders, components, and kits for heavy mobile machinery and industrial equipment; and specialized wiring, connectors, fasteners, and control devices for various applications. It operates in segments such as Wire & Cable (UK), Industrial Automation, Specialty Adhesives, Windy City Wire, Interconnect and Specialty Fasteners. The company operates in UK, USA, Rest of Europe, and Rest of World.
94GF Score
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