Latest Ratios: P/E Ratio 54.1x · EV/EBITDA 42.5x · ROE 26.5%. (2013–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.5B | $8.5B | $9.1B | $6.3B | $3.7B | $4.3B | $6.4B | $3.9B | $2.1B | $1.5B | $800M |
| Enterprise Value | $7.5B | $8.4B | $9.1B | $6.3B | $3.7B | $4.3B | $6.3B | $4.0B | $2.1B | $1.4B | $790M |
| P/E Ratio → | 54.13 | 59.96 | 44.45 | 2334.77 | — | 4203.47 | 40.55 | 107.79 | 105.75 | 148.21 | — |
| P/S Ratio | 7.89 | 8.89 | 11.43 | 10.17 | 7.82 | 12.03 | 20.74 | 15.28 | 11.08 | 10.14 | 7.58 |
| P/B Ratio | 14.06 | 15.58 | 17.48 | 21.22 | 13.89 | 14.53 | 22.49 | 29.64 | 22.93 | 17.15 | 11.49 |
| P/FCF | 31.40 | 35.37 | 48.75 | 135.92 | 195.98 | 1616.90 | 1997.44 | 398.84 | 96.33 | 87.34 | — |
| P/OCF | 30.99 | 34.91 | 48.23 | 104.65 | 145.45 | 122.12 | 133.12 | 100.56 | 58.07 | 49.67 | 69.60 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 8.85 | 11.43 | 10.16 | 7.78 | 12.03 | 20.42 | 15.54 | 10.95 | 10.03 | 7.48 |
| EV / EBITDA | 42.54 | 47.93 | 58.47 | 213.01 | — | 194.97 | 157.21 | 120.64 | 60.81 | 65.47 | 522.31 |
| EV / EBIT | 48.84 | 52.24 | 60.36 | 788.31 | — | 2492.34 | 31.87 | 614.40 | 105.91 | 154.54 | — |
| EV / FCF | — | 35.22 | 48.75 | 135.81 | 195.07 | 1616.81 | 1966.91 | 405.86 | 95.22 | 86.38 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 61.3% | 61.3% | 62.0% | 61.6% | 59.3% | 59.9% | 61.6% | 60.3% | 61.3% | 61.6% | 57.7% |
| Operating Margin | 16.1% | 16.1% | 17.1% | 0.2% | -15.3% | -3.3% | 3.2% | 2.5% | 10.3% | 6.5% | -8.0% |
| Net Profit Margin | 14.8% | 14.8% | 25.7% | 0.4% | -14.4% | 0.3% | 51.1% | 14.2% | 10.5% | 6.8% | -7.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 26.5% | 26.5% | 50.0% | 1.0% | -24.2% | 0.4% | 75.8% | 32.4% | 22.6% | 12.6% | -11.6% |
| ROA | 20.9% | 20.9% | 39.4% | 0.7% | -17.3% | 0.3% | 48.8% | 16.6% | 14.0% | 9.6% | -9.0% |
| ROIC | 22.4% | 22.4% | 25.1% | 0.3% | -19.9% | -3.7% | 3.8% | 3.6% | 21.6% | 10.9% | -10.6% |
| ROCE | 25.9% | 25.9% | 30.1% | 0.3% | -21.4% | -3.4% | 3.5% | 3.6% | 16.8% | 11.8% | -11.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.13 | 0.13 | 0.08 | 0.15 | 0.20 | 0.19 | 0.15 | 0.64 | 0.54 | — | — |
| Debt / EBITDA | 0.41 | 0.41 | 0.27 | 1.51 | — | 2.60 | 1.04 | 2.57 | 1.46 | — | — |
| Net Debt / Equity | — | -0.07 | -0.00 | -0.02 | -0.06 | -0.00 | -0.34 | 0.52 | -0.26 | -0.19 | -0.15 |
| Net Debt / EBITDA | -0.20 | -0.20 | -0.01 | -0.16 | — | -0.01 | -2.44 | 2.09 | -0.71 | -0.73 | -7.08 |
| Debt / FCF | — | -0.15 | -0.01 | -0.10 | -0.91 | -0.09 | -30.53 | 7.03 | -1.11 | -0.96 | — |
| Interest Coverage | — | — | — | — | — | — | 107.45 | 3.92 | — | 17.45 | -34.24 |
Net cash position: cash ($107M) exceeds total debt ($71M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.20 | 3.20 | 5.30 | 3.90 | 3.28 | 3.01 | 4.00 | 1.30 | 3.83 | 2.25 | 1.51 |
| Quick Ratio | 3.20 | 3.20 | 5.30 | 3.90 | 3.28 | 3.01 | 4.00 | 1.30 | 3.83 | 2.25 | 1.51 |
| Cash Ratio | 2.35 | 2.35 | 4.40 | 3.03 | 2.61 | 2.33 | 3.38 | 0.82 | 3.22 | 1.92 | 1.23 |
| Asset Turnover | — | 1.32 | 1.27 | 1.52 | 1.24 | 0.88 | 0.80 | 0.98 | 1.08 | 1.30 | 1.14 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 24.57 | 11.19 | 12.18 | 12.77 | 12.79 | 11.84 | 10.78 | 10.59 | 8.60 | 8.68 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.8% | 1.7% | 2.2% | 0.0% | — | 0.0% | 2.5% | 0.9% | 0.9% | 0.7% | — |
| FCF Yield | 3.2% | 2.8% | 2.1% | 0.7% | 0.5% | 0.1% | 0.1% | 0.3% | 1.0% | 1.1% | — |
| Buyback Yield | 2.5% | 2.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 1.0% | 0.1% | 0.0% |
| Total Shareholder Yield | 2.5% | 2.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 1.0% | 0.1% | 0.0% |
| Shares Outstanding | — | $36M | $37M | $36M | $35M | $36M | $36M | $36M | $36M | $35M | $34M |
Includes 30+ ratios · 13 years · Updated daily
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Quick answers to the most common questions about buying APPF stock.
AppFolio Inc.'s current P/E ratio is 54.1x. The historical average is 84.5x. This places it at the 33th percentile of its historical range.
AppFolio Inc.'s current EV/EBITDA is 42.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 58.2x.
AppFolio Inc.'s return on equity (ROE) is 26.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 3.4%.
Based on historical data, AppFolio Inc. is trading at a P/E of 54.1x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
AppFolio Inc. has 61.3% gross margin and 16.1% operating margin. Operating margin between 10-20% is typical for established companies.
AppFolio Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
VAS revenue volatility and margin pressure
Metrics are mathematically derived from official filings.
Margin Expansion Tempered by VAS Mix
Operating margin improved to 18.8% in 2026Q2 from 11.3% in 2024Q4, per reported figures, yet gross margin at 63.5% remains below pure-play SaaS peers, reflecting the service-heavy VAS component.
The sequential improvement in operating margin from 14.1% in 2025Q3 to 18.8% in 2026Q2 suggests that the company is beginning to realize operating leverage as revenue scales, though the path has been uneven. The gross margin stability around 61-64% indicates that the mix shift toward Value-Added Services is not deteriorating, but it also caps the potential for margin expansion to the levels seen in subscription-only software models. Investors should monitor whether the Plus tier adoption can lift gross margins toward the 70% range, as the current level implies a structural cost base tied to payment processing and screening services.
ROIC Inflecting Higher on Asset-Light Model
ROIC rose from 3.8% in 2024Q4 to 11.3% in 2026Q2, per financial statements, driven by improving operating margins and minimal capital intensity, though the 2024Q4 figure was distorted by a one-time tax benefit.
The sharp increase in ROIC over the past two quarters suggests that the company is compounding returns on invested capital as it scales, with the asset-light model requiring minimal incremental capital to support growth. The 2024Q4 ROIC of 3.8% was artificially depressed by the inflated net income from a one-time tax benefit, which also inflated ROE to 22.0% in that quarter. Excluding that anomaly, ROIC has trended from the mid-single digits to the low double digits, indicating that the business is generating increasingly efficient returns on its invested capital, though the absolute level remains below the 20%+ seen in some high-quality SaaS peers.
Working Capital Efficiency Masked by Float
DSO has risen from 11 days in 2024Q1 to 20 days in 2026Q2, per reported data, while DPO remains at 4 days, suggesting that the company is collecting receivables more slowly but still paying suppliers promptly.
The increase in DSO from 11 to 20 days over the last ten quarters may indicate a shift toward larger enterprise customers with longer payment terms, which could be a natural consequence of moving up-market. However, the very low DPO of 4 days suggests that the company is not leveraging supplier credit to fund its working capital, which is typical for a software company with minimal inventory. The cash conversion cycle is not calculable due to missing DIO data, but the company's strong current ratio of 3.83 and cash balance of $217.4M indicate that working capital efficiency is not a constraint on growth. The float from client funds held for payments may be providing a source of low-cost funding that is not captured in these traditional efficiency metrics.
Minimal Debt Provides Strategic Flexibility
Debt-to-equity stands at 0.07 as of 2026Q2, down from 0.13 in 2024Q1, per reported figures, with D/EBITDA at 0.62, indicating a conservative capital structure that limits financial risk.
The company's leverage is negligible, with total debt of $35.8M against an equity base of $526.1M, and the D/EBITDA ratio of 0.62 suggests that debt service is easily covered by operating cash flow. This conservative approach provides ample flexibility for strategic investments, though it may also indicate that management is not aggressively pursuing growth through acquisitions. The low leverage is a positive in a rising-rate environment, as it insulates the company from interest rate risk, but it also means that the company is not using debt to enhance returns on equity. Investors should monitor whether the company begins to employ leverage to fund buybacks or acquisitions, which could alter the risk profile.
Liquidity Buffer Remains Robust
Current ratio stands at 3.83 as of 2026Q2, down from a peak of 6.20 in 2024Q3, per financial statements, but cash reserves of $217.4M provide a substantial cushion against operational shocks.
The decline in the current ratio from 6.20 to 3.83 over the past two years reflects a deliberate deployment of cash into growth initiatives and share repurchases, but the absolute level remains strong. The quick ratio is identical to the current ratio, indicating that the company holds no inventory, which is typical for a software business. With cash representing 33.5% of total assets, the company is well-positioned to weather a downturn in transaction volumes, though the high cash balance may also drag on returns on capital. The liquidity position appears adequate to cover any near-term obligations, and the lack of debt maturities reduces refinancing risk.
P/E Misleads on VAS-Driven Earnings
The trailing P/E of 57.84 appears expensive, but it is distorted by a one-time tax benefit in 2024Q4; forward P/E of 31.74 better reflects normalized earnings, yet still embeds high growth expectations.
The most commonly misapplied ratio for AppFolio is the P/E multiple, because the company's earnings are heavily influenced by non-recurring items and the mix of transaction-based revenue. The 2024Q4 net margin of 50.4% was inflated by a one-time tax benefit, which artificially depressed the trailing P/E at that time. Investors should instead focus on EV/EBITDA, which at 45.46 is still elevated but more accurately captures the company's operating performance, or use a price-to-sales multiple of 8.43 to compare against peers. The forward EV/EBITDA of 18.27 suggests that the market is pricing in significant margin expansion, which may be optimistic given the structural cost base of the VAS segment. A more appropriate valuation metric would be EV/EBITDA adjusted for stock-based compensation, as the company's cash flow generation is partially offset by equity dilution.