SThree (LSE:STEM) EV-to-OCF: 7.82 (As of Aug. 11, 2026) — 28% Below Median

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LSE:STEM SThree PLC LSE:STEM
68 GF Score
Price £2.83
GF Value £2.33
Valuation Modestly Overvalued
! 11 Warning Signs
View Full Analysis

What is SThree EV-to-OCF?

SThree LSE:STEM -1.05% 68 EV-to-OCF is 7.82 as of Aug. 11, 2026, which is 28% below its 10-year median of 10.84. GuruFocus rates LSE:STEM with a GF Score™ of 68/100 and a GF Value™ of £2.33 (Modestly Overvalued). The stock has 11 warning signs investors should review. Among 1,090 Business Services companies, SThree ranks worse than 53.12% on this metric.

EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, SThree's Enterprise Value is £349 Mil. SThree's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2026 was £45 Mil. Therefore, SThree's EV-to-OCF for today is 7.82.

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

LSE:STEM' s EV-to-OCF Range Over the Past 10 Years
Min: 2.74   Med: 10.84   Max: 29.15
Current: 7.9

During the past 13 years, the highest EV-to-OCF of SThree was 29.15. The lowest was 2.74. And the median was 10.84.

LSE:STEM's EV-to-OCF is ranked worse than
53.12% of 1090 companies
in the Business Services industry
Industry Median: 7.22 vs LSE:STEM: 7.90

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 (2026-08-11), SThree's stock price is £2.825. SThree's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2026 was £0.101. Therefore, SThree's PE Ratio (TTM) for today is 27.97.


SThree  (LSE:STEM) 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.

SThree's PE Ratio (TTM) for today is calculated as:

PE Ratio (TTM)=Share Price (Today)/Earnings per Share (Diluted) (TTM)
=2.825/0.101
=27.97

SThree's share price for today is £2.825.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. SThree's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2026 was £0.101.

* 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.


SThree EV-to-OCF Related Terms


SThree EV-to-OCF Historical Data

* Premium members only.

The historical data trend for SThree'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.

SThree EV-to-OCF Chart

SThree Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
EV-to-OCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.79 11.26 6.93 11.32 3.10

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-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 11.32 0.00 3.10 0.00

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

For the Staffing & Employment Services subindustry, SThree'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.


SThree EV-to-OCF vs Business Services Industry

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

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


LSE:STEM
68GF Score
SThree PLC LSE:STEM
EV-to-OCF is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

SThree EV-to-OCF Calculation

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

EV-to-OCF=Enterprise Value (Today)/Cash Flow from Operations (TTM)
=349.160/44.663
=7.82

SThree's current Enterprise Value is £349 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. SThree's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2026 was £45 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 7.82 mean?
SThree (LSE:STEM) has a EV-to-OCF of 7.82 as of Aug. 11, 2026. This is 28% below median its historical median of 10.84. Over the past decade, SThree's EV-to-OCF has ranged from 2.74 to 29.15. According to the industry distribution chart, SThree ranks #579 out of 1090 companies in the Business Services industry, placing it in the top 53.1%.
Is SThree's EV-to-OCF too high?
SThree's current EV-to-OCF of 7.82 is 28% below median its 10-year median of 10.84. Over the past 10 years, this metric has ranged from a low of 2.74 to a high of 29.15. The Business Services industry median EV-to-OCF is 7.22. SThree's value of 7.82 is 8.3% above this industry median. Based on the distribution chart, SThree ranks #579 out of 1090 companies in the Business Services industry, which is below the industry midpoint. Overall, SThree has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SThree's EV-to-OCF compare to KFY and RHI?
According to the Business Services industry distribution chart, SThree ranks #579 out of 1090 companies for EV-to-OCF. This places SThree in the lower half of its industry. The industry median EV-to-OCF is 7.22. SThree's value of 7.82 is 8.3% above this benchmark. Historically, SThree's own EV-to-OCF has ranged from 2.74 to 29.15 over the past decade. While the company's 10-year median is 10.84 vs. the industry median of 7.22, 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-OCF for a Business Services company?
The median EV-to-OCF among Business Services companies is 7.22, based on 1,090 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. SThree's current EV-to-OCF of 7.82 is 8.3% 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 Business Services industry, the median EV-to-OCF is 7.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SThree's current EV-to-OCF is 7.82, which is 28% below median its own 10-year median of 10.84. 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 Modestly Overvalued. The stock's GF Value™ is £2.33, compared to a current price of £2.83 — trading 21.2% above its estimated fair value. The current EV-to-OCF is 7.82, which is 28% below median its 10-year median of 10.84 and 8.3% above the Business Services industry median of 7.22. SThree's overall GF Score™ is 68/100 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-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For SThree (LSE:STEM), the current EV-to-OCF is 7.82 as of Aug. 11, 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 £2.83 is trading 21.2% above its estimated GF Value™ of £2.33. GuruFocus considers SThree to be Modestly Overvalued.

Key valuation signals for LSE:STEM:

  • EV-to-OCF: 7.82 (28% below median its 10-year median of 10.84)
  • GF Value™: £2.33 vs. price of £2.83 (21.2% above fair value)
  • GF Score™: 68/100 with 11 warning signs
  • Industry Position: 8.3% above the Business Services median (#579 of 1090)

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.
68GF Score

Get the complete analysis for LSE:STEM

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

£2.83
Price
£2.33
GF Value