Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Dec. 2025, Eurofins Scientific SE has a Sloan Ratio of 1.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Eurofins Scientific SE (OTCPK:ERFSF) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Dec. 2025, Eurofins Scientific SE has a Sloan Ratio of 1.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Eurofins Scientific SE Sloan Ratio % Related Terms
Eurofins Scientific SE Sloan Ratio % Historical Data
* 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 Diagnostics & Research subindustry, Eurofins Scientific SE's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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.
Eurofins Scientific SE Sloan Ratio % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Eurofins Scientific SE's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Eurofins Scientific SE's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Eurofins Scientific SE's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Eurofins Scientific SE's Net Income for the trailing twelve months (TTM) ended in Dec. 2025 was 284.429 (Jun. 2025 ) + 267.213 (Dec. 2025 ) = $552 Mil.
Eurofins Scientific SE's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was 607.036 (Jun. 2025 ) + 1021.78 (Dec. 2025 ) = $1,629 Mil.
Eurofins Scientific SE's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2025 was -471.165 (Jun. 2025 ) + -781.85 (Dec. 2025 ) = $-1,253 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.
Eurofins Scientific SE (ERFSF) has a Sloan Ratio % of 1.37% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Eurofins Scientific SE and its competitors.
Is Eurofins Scientific SE's Sloan Ratio % too high?
Eurofins Scientific SE's current Sloan Ratio % is 1.37%. Overall, Eurofins Scientific SE has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eurofins Scientific SE's Sloan Ratio % compare to TMO and DHR?
Eurofins Scientific SE's Sloan Ratio % of 1.37% can be compared against companies in the Medical Diagnostics & Research industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Medical Diagnostics & Research company?
A good Sloan Ratio % depends on the Medical Diagnostics & Research industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Eurofins Scientific SE and its competitors. Eurofins Scientific SE's current Sloan Ratio % is 1.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eurofins Scientific SE stock overvalued right now?
Based on GuruFocus' analysis, Eurofins Scientific SE (ERFSF) is currently considered Fairly Valued. The stock's GF Value™ is $78.13, compared to a current price of $80.40 — trading 2.9% above its estimated fair value. The current Sloan Ratio % is 1.37%. Eurofins Scientific SE's overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Eurofins Scientific SE (ERFSF), the current Sloan Ratio % is 1.37% as of Dec. 2025. 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 Eurofins Scientific SE (ERFSF) Overvalued in 2026?
Based on GuruFocus' analysis, Eurofins Scientific SE stock appears to be overvalued.
The current stock price of $80.40 is trading 2.9% above its estimated GF Value™ of $78.13.
GuruFocus considers Eurofins Scientific SE to be Fairly Valued.
Key valuation signals for ERFSF:
Sloan Ratio %: 1.37%
GF Value™: $78.13 vs. price of $80.40 (2.9% above fair value)
No single metric tells the full story. See the ERFSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eurofins, headquartered in Luxembourg, is a decentralized network of life sciences companies that provide various analytical tests and laboratory services. These include tests to evaluate the safety, identity, composition, authenticity, purity, origin, and traceability of various biological substances and products. Eurofins operates over 950 laboratories in 61 countries. Its revenue from Europe, North America, and the rest of the world contributes approximately 50%, 40%, and 10% of total revenue, respectively. Its areas of business activity are food, feed, and environmental testing ("life"), biopharmaceutical services, diagnostic services and products, and consumer and technology products testing, which contribute approximately 40%, 30%, 20%, and 10% respectively.
79GF Score
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