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.
Pros Holdings's Sloan Ratio for the quarter that ended in Sep. 2025 was -11.36%.
As of Sep. 2025, Pros Holdings has a Sloan Ratio of -11.36%, indicating there is a warning stage of accrual build up.
Pros Holdings (NYSE:PRO) 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 Sep. 2025, Pros Holdings has a Sloan Ratio of -11.36%, indicating there is a warning stage of accrual build up.
Pros Holdings Sloan Ratio % Related Terms
Pros Holdings Sloan Ratio % Historical Data
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The historical data trend for Pros Holdings'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.
For the Software - Application subindustry, Pros Holdings'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.
Pros Holdings Sloan Ratio % vs Software Industry
For the Software industry and Technology sector, Pros Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Pros Holdings'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.
Pros Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Pros Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2025 was -1.967 (Dec. 2024 ) + -3.689 (Mar. 2025 ) + -1.756 (Jun. 2025 ) + -4.247 (Sep. 2025 ) = $-11.7 Mil.
Pros Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2025 was 24.013 (Dec. 2024 ) + 1.215 (Mar. 2025 ) + 3.215 (Jun. 2025 ) + 11.372 (Sep. 2025 ) = $39.8 Mil.
Pros Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2025 was -0.379 (Dec. 2024 ) + 0.015 (Mar. 2025 ) + -0.041 (Jun. 2025 ) + -0.53 (Sep. 2025 ) = $-0.9 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.
Pros Holdings (PRO) has a Sloan Ratio % of -11.36% as of Sep. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Pros Holdings and its competitors.
Is Pros Holdings' Sloan Ratio % too high?
Pros Holdings' current Sloan Ratio % is -11.36%. Overall, Pros Holdings has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does Pros Holdings' Sloan Ratio % compare to PD and PDFS?
Pros Holdings' Sloan Ratio % of -11.36% can be compared against companies in the Software 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 Software company?
A good Sloan Ratio % depends on the Software 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 Pros Holdings and its competitors. Pros Holdings's current Sloan Ratio % is -11.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pros Holdings stock overvalued right now?
Pros Holdings (PRO) has a current Sloan Ratio % of -11.36%. The stock's GF Value™ is $30.38, compared to a current price of $23.25 — trading 23.5% below its estimated fair value. The current Sloan Ratio % is -11.36%. Pros Holdings' overall GF Score™ is 58/100 with 5 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 Pros Holdings (PRO), the current Sloan Ratio % is -11.36% as of Sep. 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 Pros Holdings (PRO) Overvalued in 2026?
Based on GuruFocus' analysis, Pros Holdings stock appears to be undervalued.
The current stock price of $23.25 is trading 23.5% below its estimated GF Value™ of $30.38.
Key valuation signals for PRO:
Sloan Ratio %: -11.36%
GF Value™: $30.38 vs. price of $23.25 (23.5% below fair value)
No single metric tells the full story. See the PRO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pros Holdings Inc provides software solutions that optimize shopping and selling experiences for both business-to-business and business-to-consumer companies across industry verticals in more than nearly 80 countries. Its PROS Platform is designed to help businesses create, optimize and market available offers and handle orders through both first- and third-party digital channels. The firm generates key revenue form the United States of America, Germany, The rest of Europe, Africa, Asia-Pacific, and Middle East regions.
58GF Score
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