Kip McGrath Education Centres (ASX:KME) EV-to-FCF: 5.83 (As of Aug. 18, 2026) — 50% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ASX:KME Kip McGrath Education Centres Ltd ASX:KME
60 GF Score
Price A$0.73
GF Value A$0.52
Valuation Significantly Overvalued
! 5 Warning Signs
View Full Analysis

What is Kip McGrath Education Centres EV-to-FCF?

Kip McGrath Education Centres ASX:KME +0.69% 60 EV-to-FCF is 5.83 as of Aug. 18, 2026, which is 50% below its 10-year median of 11.73. GuruFocus rates ASX:KME with a GF Score™ of 60/100 and a GF Value™ of A$0.52 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 200 Education companies, Kip McGrath Education Centres ranks better than 71.5% on this metric.

EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Kip McGrath Education Centres's Enterprise Value is A$33.33 Mil. Kip McGrath Education Centres's Free Cash Flow for the trailing twelve months (TTM) ended in Jun. 2026 was A$5.72 Mil. Therefore, Kip McGrath Education Centres's EV-to-FCF for today is 5.83.

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

ASX:KME' s EV-to-FCF Range Over the Past 10 Years
Min: -19.94   Med: 11.73   Max: 2799.21
Current: 5.78

During the past 13 years, the highest EV-to-FCF of Kip McGrath Education Centres was 2799.21. The lowest was -19.94. And the median was 11.73.

ASX:KME's EV-to-FCF is ranked better than
71.5% of 200 companies
in the Education industry
Industry Median: 9.48 vs ASX:KME: 5.78

EV-to-FCF 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 (2026-08-18), Kip McGrath Education Centres's stock price is A$0.725. Kip McGrath Education Centres's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 was A$0.045. Therefore, Kip McGrath Education Centres's PE Ratio (TTM) for today is 16.11.


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

EV-to-FCF 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)
=0.725/0.045
=16.11

Kip McGrath Education Centres's share price for today is A$0.725.
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 Jun. 2026 was A$0.045.

* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.


Kip McGrath Education Centres EV-to-FCF Related Terms


Kip McGrath Education Centres EV-to-FCF Historical Data

* Premium members only.

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

Kip McGrath Education Centres Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25 Jun26
EV-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 187.88 7.63 -9.94 6.65 3.94

Kip McGrath Education Centres Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25 Jun26
EV-to-FCF 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 -9.94 0.00 6.65 0.00 3.94

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

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

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

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


ASX:KME
60GF Score
Kip McGrath Education Centres Ltd ASX:KME
EV-to-FCF is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Kip McGrath Education Centres EV-to-FCF Calculation

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

EV-to-FCF=Enterprise Value (Today)/Free Cash Flow (TTM)
=33.329/5.721
=5.83

Kip McGrath Education Centres's current Enterprise Value is A$33.33 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Kip McGrath Education Centres's Free Cash Flow for the trailing twelve months (TTM) ended in Jun. 2026 was A$5.72 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-FCF →
What does a EV-to-FCF of 5.83 mean?
Kip McGrath Education Centres (ASX:KME) has a EV-to-FCF of 5.83 as of Aug. 18, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Kip McGrath Education Centres and its competitors. This is 50% below median its historical median of 11.73. According to the industry distribution chart, Kip McGrath Education Centres ranks #57 out of 200 companies in the Education industry, placing it in the top 28.5%.
Is Kip McGrath Education Centres' EV-to-FCF too high?
Kip McGrath Education Centres' current EV-to-FCF of 5.83 is 50% below median its 10-year median of 11.73. The Education industry median EV-to-FCF is 9.48. Kip McGrath Education Centres' value of 5.83 is 38.5% below this industry median. Based on the distribution chart, Kip McGrath Education Centres ranks #57 out of 200 companies in the Education industry, which is above the industry midpoint. Overall, Kip McGrath Education Centres has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kip McGrath Education Centres' EV-to-FCF compare to EDU and TAL?
According to the Education industry distribution chart, Kip McGrath Education Centres ranks #57 out of 200 companies for EV-to-FCF. This puts Kip McGrath Education Centres in the upper half of its industry. The industry median EV-to-FCF is 9.48. Kip McGrath Education Centres' value of 5.83 is 38.5% below this benchmark. While the company's 10-year median is 11.73 vs. the industry median of 9.48, 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-FCF for an Education company?
The median EV-to-FCF among Education companies is 9.48, based on 200 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF 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-FCF of 5.83 is 38.5% 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Kip McGrath Education Centres and its competitors. For the Education industry, the median EV-to-FCF is 9.48 — 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-FCF is 5.83, which is 50% below median its own 10-year median of 11.73. 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 Significantly Overvalued. The stock's GF Value™ is A$0.52, compared to a current price of A$0.73 — trading 39.4% above its estimated fair value. The current EV-to-FCF is 5.83, which is 50% below median its 10-year median of 11.73 and 38.5% below the Education industry median of 9.48. Kip McGrath Education Centres' overall GF Score™ is 60/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Kip McGrath Education Centres (ASX:KME), the current EV-to-FCF is 5.83 as of Aug. 18, 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$0.73 is trading 39.4% above its estimated GF Value™ of A$0.52. GuruFocus considers Kip McGrath Education Centres to be Significantly Overvalued.

Key valuation signals for ASX:KME:

  • EV-to-FCF: 5.83 (50% below median its 10-year median of 11.73)
  • GF Value™: A$0.52 vs. price of A$0.73 (39.4% above fair value)
  • GF Score™: 60/100 with 5 warning signs
  • Industry Position: 38.5% below the Education median (#57 of 200)

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.
60GF Score

Get the complete analysis for ASX:KME

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

A$0.73
Price
A$0.52
GF Value