Latest Ratios: P/E Ratio -26.1x · EV/EBITDA N/A · ROE -10.0%. (2005–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $7.1B | $9.6B | $4.3B | $4.4B | $2.5B | $2.0B | $2.7B | $1.5B | $1.7B | $1.3B | $666M |
| Enterprise Value | $7.6B | $10.0B | $4.3B | $4.4B | $2.6B | $2.1B | $2.8B | $1.2B | $1.5B | $1.2B | $586M |
| P/E Ratio → | -26.08 | — | 97.75 | 73.30 | — | — | 79.40 | 35.03 | 34.80 | 64.88 | 51.02 |
| P/S Ratio | 3.60 | 4.84 | 5.20 | 6.09 | 4.67 | 4.45 | 6.81 | 3.95 | 5.25 | 4.84 | 2.86 |
| P/B Ratio | 1.57 | 2.18 | 4.82 | 5.31 | 4.58 | 3.26 | 4.39 | 2.85 | 3.57 | 3.16 | 1.74 |
| P/FCF | — | — | — | — | — | — | 35.72 | 104.60 | 159.24 | 21.76 | — |
| P/OCF | — | — | — | 285.56 | 221.21 | — | 31.07 | 57.84 | 85.69 | 18.75 | — |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 5.07 | 5.23 | 6.07 | 4.72 | 4.76 | 7.00 | 3.29 | 4.70 | 4.30 | 2.51 |
| EV / EBITDA | — | — | 52.48 | 40.47 | — | 41.66 | 44.15 | 21.16 | 35.61 | 31.71 | 22.70 |
| EV / EBIT | — | — | 67.71 | 59.07 | 213.66 | — | 54.95 | 26.06 | 38.66 | 36.71 | 26.52 |
| EV / FCF | — | — | — | — | — | — | 36.71 | 86.95 | 142.58 | 19.35 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.3% | 25.3% | 39.4% | 39.6% | 32.1% | 31.7% | 41.7% | 41.7% | 40.9% | 40.1% | 41.8% |
| Operating Margin | -15.7% | -15.7% | 5.0% | 10.0% | -33.1% | -2.2% | 11.0% | 12.8% | 10.8% | 11.3% | 8.9% |
| Net Profit Margin | -13.4% | -13.4% | 5.3% | 8.3% | -32.6% | -0.9% | 5.9% | 11.2% | 15.1% | 6.7% | 5.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -10.0% | -10.0% | 5.1% | 8.7% | -30.4% | -0.7% | 4.2% | 8.4% | 10.9% | 4.5% | 3.5% |
| ROA | -7.8% | -7.8% | 4.1% | 6.5% | -20.3% | -0.5% | 3.1% | 7.5% | 9.7% | 3.9% | 3.1% |
| ROIC | -8.1% | -8.1% | 3.6% | 7.8% | -20.2% | -1.0% | 6.8% | 12.7% | 9.1% | 8.0% | 5.8% |
| ROCE | -10.0% | -10.0% | 4.5% | 9.1% | -23.6% | -1.2% | 6.4% | 9.6% | 7.7% | 7.6% | 5.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.19 | 0.19 | 0.07 | 0.07 | 0.30 | 0.36 | 0.36 | 0.02 | — | 0.00 | 0.00 |
| Debt / EBITDA | — | — | 0.79 | 0.55 | — | 4.25 | 3.56 | 0.18 | — | 0.00 | 0.01 |
| Net Debt / Equity | — | 0.10 | 0.03 | -0.02 | 0.05 | 0.23 | 0.12 | -0.48 | -0.37 | -0.35 | -0.21 |
| Net Debt / EBITDA | — | — | 0.29 | -0.13 | — | 2.74 | 1.18 | -4.30 | -4.16 | -3.94 | -3.09 |
| Debt / FCF | — | — | — | — | — | — | 0.98 | -17.65 | -16.66 | -2.41 | — |
| Interest Coverage | -55.41 | -55.41 | 28.97 | 17.46 | 1.27 | -1.65 | 81.36 | — | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 4.30 | 4.30 | 3.52 | 3.56 | 3.93 | 3.64 | 4.18 | 7.53 | 10.47 | 6.43 | 7.37 |
| Quick Ratio | 3.59 | 3.59 | 2.69 | 2.52 | 2.79 | 2.74 | 3.43 | 6.85 | 9.26 | 5.81 | 6.12 |
| Cash Ratio | 1.44 | 1.44 | 0.24 | 0.51 | 1.09 | 1.01 | 1.88 | 4.52 | 7.20 | 4.14 | 4.16 |
| Asset Turnover | — | 0.35 | 0.73 | 0.71 | 0.66 | 0.49 | 0.43 | 0.63 | 0.62 | 0.57 | 0.54 |
| Inventory Turnover | 4.72 | 4.72 | 3.45 | 2.88 | 2.64 | 3.36 | 3.22 | 4.70 | 3.44 | 4.16 | 2.26 |
| Days Sales Outstanding | — | 163.70 | 174.62 | 137.39 | 130.52 | 134.96 | 124.11 | 148.56 | 98.63 | 100.20 | 129.71 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 1.0% | 1.4% | — | — | 1.3% | 2.9% | 2.9% | 1.5% | 2.0% |
| FCF Yield | — | — | — | — | — | — | 2.8% | 1.0% | 0.6% | 4.6% | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $49M | $28M | $27M | $25M | $25M | $24M | $24M | $24M | $24M | $23M |
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying AVAV stock.
AeroVironment, Inc.'s current P/E ratio is -26.1x. The historical average is 55.2x.
AeroVironment, Inc.'s return on equity (ROE) is -10.0%. The historical average is 9.2%.
Based on historical data, AeroVironment, Inc. is trading at a P/E of -26.1x. Compare with industry peers and growth rates for a complete picture.
AeroVironment, Inc. has 25.3% gross margin and -15.7% operating margin.
Key Metrics
Top Statement Risk
Profitability gap persists despite revenue surge
Metrics are mathematically derived from official filings.
Growth Premium Amidst Negative Earnings
The forward P/E of 44.88x and P/S of 3.76x reflect a high-growth premium, but the negative TTM P/E of -27.17x indicates the market is pricing future profitability that has yet to materialize from current operations.
The valuation multiples appear to be pricing a significant inflection in earnings power that is not yet visible in the trailing financials. The P/S ratio, when compared to the peer group, suggests the market is assigning a premium to AVAV's growth profile and Switchblade TMS potential, but the negative TTM P/E creates a valuation dislocation that hinges entirely on management's ability to convert its scaling revenue into positive operating income. Investors should monitor if the forward EV/EBITDA of 18.18x is justified by the trajectory of core hardware margins.
Gross Margin Swings Hide Structural Weakness
Gross margin has been highly volatile, ranging from 17.1% to 43.0% over the past ten quarters, suggesting significant product mix shifts, while the operating margin has plunged to -2.3% in Q1 FY27, indicating a failure to achieve operating leverage at scale.
The core profitability challenge is not gross margin itself, but the company's inability to cover its fixed overhead as it scales. The persistent negative operating margin, despite revenue surging to over $640 million quarterly, points to structural issues in SG&A and R&D spending that are outpacing revenue growth. This pattern implies the company is in a heavy investment phase, but the return on that investment, as measured by operating income, remains deeply negative.
Capital Returns Turn Negative as Scale Increases
ROIC has deteriorated from a positive 2.1% in Q1 FY25 to negative 0.2% in Q1 FY27, which suggests the company is currently destroying value on the incremental capital being deployed into its rapid expansion.
The shift from positive to negative returns on invested capital is a critical red flag that aligns with the emergence of debt on the balance sheet and the massive goodwill from acquisitions. It indicates that the recent surge in assets and capital deployed has not yet generated commensurate profits. The primary driver appears to be the collapse in operating margin rather than asset turnover, pointing to a profitability problem, not an efficiency one.
Working Capital Strains from Rapid Expansion
The Cash Conversion Cycle has ballooned to 217 days in Q1 FY27, driven by a Days Sales Outstanding of 166 days, which implies that AVAV's rapid revenue growth is consuming significant cash as it extends credit to government customers.
The elongation of the CCC is a direct consequence of the company's growth trajectory and customer mix. The high DSO suggests lengthy government payment cycles or the recognition of revenue ahead of cash collection on large, project-based contracts. Combined with rising inventory days (95 in Q1 FY27), this working capital build is a primary reason for the negative free cash flow, despite reported revenue growth.
Low Headline Leverage Amidst Erosion of Coverage
While the debt-to-equity ratio of 0.19 remains low for an industrial, the interest coverage ratio has turned negative in multiple recent quarters, indicating that operating losses are not generating enough earnings to service even a modest debt load.
The company's leverage profile is manageable in absolute terms but concerning in a relative earnings context. The negative interest coverage in periods like Q4 FY26 (-3.82x) and Q1 FY26 (-3.98x) is a direct result of the negative operating income. This means debt service is currently being funded by existing cash reserves or new financing, not operational cash flow, a dynamic that warrants monitoring as the total debt load has increased.
The P/E Ratio Is the Wrong Tool Here
The P/E ratio, whether trailing or forward, is the most commonly misapplied metric to AVAV's business model, as it obscures the value of its growing, high-margin Switchblade TMS backlog and the potential shift to a 'consumable' munitions revenue stream.
For a company investing heavily to capture a large addressable market, P/E focuses on a single point of current, distorted earnings. A more appropriate analysis would focus on the growth trajectory of the TMS segment's revenue and its contribution to gross profit, alongside the trajectory of the operating margin ex-R&D. The market's focus on when AVAV will reach profitability may be distracting from the value being created in its installed base and switching-cost moat.