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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.
Ulta Beauty's Sloan Ratio for the quarter that ended in Apr. 2026 was 7.87%.
As of Apr. 2026, Ulta Beauty has a Sloan Ratio of 7.87%, indicating the company is in the safe zone and there is no funny business with accruals.
Ulta Beauty (FRA:34U) 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 Apr. 2026, Ulta Beauty has a Sloan Ratio of 7.87%, indicating the company is in the safe zone and there is no funny business with accruals.
Ulta Beauty Sloan Ratio % Related Terms
Ulta Beauty Sloan Ratio % Historical Data
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The historical data trend for Ulta Beauty's Sloan Ratio % 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.
FRA:34U vs DKS, BBY, TSCO: Sloan Ratio % Comparison
For the Specialty Retail subindustry, Ulta Beauty'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.
Ulta Beauty Sloan Ratio % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Ulta Beauty's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ulta Beauty'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.
Ulta Beauty's Sloan Ratio for the fiscal year that ended in Jan. 2026 is calculated as
Ulta Beauty's Net Income for the trailing twelve months (TTM) ended in Apr. 2026 was 223.57 (Jul. 2025 ) + 198.322 (Oct. 2025 ) + 303.532 (Jan. 2026 ) + 291.101 (Apr. 2026 ) = €1,017 Mil.
Ulta Beauty's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2026 was 82.719 (Jul. 2025 ) + 4.846 (Oct. 2025 ) + 1004.687 (Jan. 2026 ) + 223.919 (Apr. 2026 ) = €1,316 Mil.
Ulta Beauty's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2026 was -405.819 (Jul. 2025 ) + -82.111 (Oct. 2025 ) + -234.745 (Jan. 2026 ) + -41.232 (Apr. 2026 ) = €-764 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.
Ulta Beauty (FRA:34U) has a Sloan Ratio % of 7.87% as of Apr. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Ulta Beauty and its competitors.
Is Ulta Beauty's Sloan Ratio % too high?
Ulta Beauty's current Sloan Ratio % is 7.87%. Overall, Ulta Beauty has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ulta Beauty's Sloan Ratio % compare to DKS and BBY?
Ulta Beauty's Sloan Ratio % of 7.87% can be compared against companies in the Retail - Cyclical 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 Retail - Cyclical company?
A good Sloan Ratio % depends on the Retail - Cyclical 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 Ulta Beauty and its competitors. Ulta Beauty's current Sloan Ratio % is 7.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ulta Beauty stock overvalued right now?
Based on GuruFocus' analysis, Ulta Beauty (FRA:34U) is currently considered Modestly Undervalued. The stock's GF Value™ is €492.19, compared to a current price of €416.70 — trading 15.3% below its estimated fair value. The current Sloan Ratio % is 7.87%. Ulta Beauty's overall GF Score™ is 94/100 with 2 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 Ulta Beauty (FRA:34U), the current Sloan Ratio % is 7.87% as of Apr. 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 Ulta Beauty (FRA:34U) Overvalued in 2026?
Based on GuruFocus' analysis, Ulta Beauty stock appears to be undervalued.
The current stock price of €416.70 is trading 15.3% below its estimated GF Value™ of €492.19.
GuruFocus considers Ulta Beauty to be Modestly Undervalued.
Key valuation signals for FRA:34U:
Sloan Ratio %: 7.87%
GF Value™: €492.19 vs. price of €416.70 (15.3% below fair value)
No single metric tells the full story. See the FRA:34U stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ulta Beauty is the largest specialized beauty retailer in the US with more than 1,500 freestanding stores. The firm offers cosmetics (38% of 2025 sales), fragrances (13%), skin care (24%), and hair care products (19%). It also has salon services, including hair, makeup, skin, and brow, that account for 4% of its revenue and drive customer traffic. Outside of the US, Ulta operates premium beauty retailer Space NK (86 stores at year-end 2025 in the UK and Ireland) and has franchised stores in Mexico, and a joint venture in the Middle East. Ulta was founded in 1990 and is based in Bolingbrook, Illinois.
94GF Score
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