Latest Ratios: P/E Ratio 32.4x · EV/EBITDA 17.8x · ROE 10.4%. (2017–2025 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $45.4B | $44.7B | $62.2B | $49.0B | $35.5B | $48.3B | $33.2B | — | — | — |
| Enterprise Value | $56.5B | $55.9B | $71.0B | $53.8B | $41.4B | $55.5B | $41.1B | — | — | — |
| P/E Ratio → | 32.41 | 31.08 | 11.10 | 35.25 | 10.06 | 29.01 | 16.76 | — | — | — |
| P/S Ratio | 2.09 | 2.06 | 2.77 | 2.59 | 2.05 | 2.34 | 1.90 | — | — | — |
| P/B Ratio | 3.30 | 3.17 | 4.32 | 5.44 | 4.40 | 6.81 | 5.05 | — | — | — |
| P/FCF | 26.77 | 26.36 | 1414.38 | 22.60 | 24.91 | 25.51 | 24.06 | — | — | — |
| P/OCF | 21.74 | 21.42 | 110.54 | 18.80 | 20.38 | 21.59 | 19.62 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.57 | 3.16 | 2.84 | 2.39 | 2.69 | 2.36 | — | — | — |
| EV / EBITDA | 17.77 | 17.56 | 21.31 | 21.06 | 18.54 | 18.61 | 12.03 | — | — | — |
| EV / EBIT | 29.65 | 24.76 | 24.87 | 23.33 | 10.03 | 23.56 | 13.04 | — | — | — |
| EV / FCF | — | 32.91 | 1613.04 | 24.81 | 29.02 | 29.33 | 29.79 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.9% | 25.9% | 26.6% | 27.2% | 24.9% | 29.0% | 29.3% | 29.1% | 29.4% | 29.1% |
| Operating Margin | 8.8% | 8.8% | 9.3% | 10.9% | 11.0% | 12.8% | 17.7% | 13.4% | 19.2% | 17.0% |
| Net Profit Margin | 6.8% | 6.8% | 24.9% | 7.1% | 20.4% | 8.1% | 11.4% | 11.4% | 14.5% | 6.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.4% | 10.4% | 47.9% | 15.8% | 46.6% | 24.3% | 18.9% | 14.7% | 18.8% | 8.3% |
| ROA | 4.0% | 4.0% | 16.0% | 4.6% | 13.5% | 6.5% | 8.3% | 9.6% | 12.5% | 5.6% |
| ROIC | 5.9% | 5.9% | 8.5% | 11.2% | 10.1% | 13.8% | 16.1% | 13.5% | 20.2% | 16.7% |
| ROCE | 6.4% | 6.4% | 7.6% | 9.0% | 9.6% | 13.4% | 16.3% | 14.2% | 20.8% | 17.1% |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.90 | 0.90 | 0.88 | 1.62 | 1.16 | 1.44 | 1.68 | 0.05 | 0.02 | 0.01 |
| Debt / EBITDA | 3.98 | 3.98 | 3.82 | 5.73 | 4.20 | 3.43 | 3.23 | 0.24 | 0.07 | 0.05 |
| Net Debt / Equity | — | 0.79 | 0.61 | 0.53 | 0.72 | 1.02 | 1.20 | -0.02 | -0.06 | -0.08 |
| Net Debt / EBITDA | 3.49 | 3.49 | 2.62 | 1.87 | 2.62 | 2.43 | 2.32 | -0.10 | -0.21 | -0.34 |
| Debt / FCF | — | 6.55 | 198.66 | 2.20 | 4.10 | 3.82 | 5.74 | -0.15 | -0.47 | -0.66 |
| Interest Coverage | 6.54 | 6.54 | 4.92 | 7.53 | 13.66 | 7.39 | 10.58 | 30.09 | 46.74 | 14.95 |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.20 | 1.20 | 1.25 | 2.80 | 1.64 | 1.72 | 1.67 | 1.33 | 1.37 | 1.41 |
| Quick Ratio | 0.85 | 0.85 | 0.96 | 2.54 | 1.20 | 1.42 | 1.35 | 1.04 | 1.06 | 1.05 |
| Cash Ratio | 0.22 | 0.22 | 0.50 | 1.41 | 0.58 | 0.45 | 0.61 | 0.21 | 0.25 | 0.31 |
| Asset Turnover | — | 0.58 | 0.60 | 0.58 | 0.66 | 0.79 | 0.70 | 0.83 | 0.87 | 0.81 |
| Inventory Turnover | 6.49 | 6.49 | 7.18 | 7.56 | 4.92 | 7.43 | 7.58 | 9.90 | 9.79 | 8.26 |
| Days Sales Outstanding | — | 44.29 | 43.03 | 40.06 | 71.15 | 51.46 | 71.87 | 65.67 | 62.51 | 54.46 |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.7% | 1.7% | 1.1% | 1.3% | 1.4% | 0.9% | 0.4% | — | — | — |
| Payout Ratio | 52.0% | 52.0% | 12.0% | 46.0% | 14.4% | 25.1% | 7.0% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.1% | 3.2% | 9.0% | 2.8% | 9.9% | 3.4% | 6.0% | — | — | — |
| FCF Yield | 3.7% | 3.8% | 0.1% | 4.4% | 4.0% | 3.9% | 4.2% | — | — | — |
| Buyback Yield | 6.4% | 6.5% | 3.1% | 0.1% | 3.9% | 1.1% | 0.0% | — | — | — |
| Total Shareholder Yield | 8.0% | 8.2% | 4.2% | 1.4% | 5.3% | 2.0% | 0.4% | — | — | — |
| Shares Outstanding | — | $847M | $912M | $853M | $861M | $890M | $880M | $866M | $873M | $873M |
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying CARR stock.
Carrier Global Corporation's current P/E ratio is 32.4x. The historical average is 22.2x. This places it at the 83th percentile of its historical range.
Carrier Global Corporation's current EV/EBITDA is 17.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.2x.
Carrier Global Corporation's return on equity (ROE) is 10.4%. The historical average is 22.9%.
Based on historical data, Carrier Global Corporation is trading at a P/E of 32.4x. This is at the 83th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Carrier Global Corporation's current dividend yield is 1.65% with a payout ratio of 52.0%.
Carrier Global Corporation has 25.9% gross margin and 8.8% operating margin.
Carrier Global Corporation's Debt/EBITDA ratio is 4.0x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Viessmann integration execution risk
Metrics are mathematically derived from official filings.
Margin Recovery Tempered by Mix
Gross margin improved to 27.2% in Q2 2026 from 23.3% in Q1, yet remains below the 28.9% peak a year earlier, according to reported financials, suggesting pricing power is still constrained.
The sequential margin rebound reflects operational leverage from returning organic growth, but the year-over-year gap indicates that the Viessmann integration and product mix are diluting gross margin. Operating margin swung from 1.1% in Q4 2025 to 12.1% in Q2 2026, highlighting the volatility from restructuring and revenue timing. Investors should monitor whether the backlog conversion sustains margins above the 12% level, as the 900 basis point gap to Trane's gross margin remains a structural concern.
ROIC Recovery Still Subpar
ROIC improved to 2.3% in Q2 2026 from 0.7% in Q1, but remains far below the 26.2% reported by Trane, per peer data, indicating capital efficiency is still recovering.
The low ROIC reflects the heavy goodwill from the Viessmann acquisition, which inflates invested capital without immediate earnings contribution. While the sequential improvement is encouraging, the absolute level suggests that the acquisition has not yet generated returns above the cost of capital. The company's asset-light model, with net PPE of only $3.7B, implies that future ROIC gains will depend on margin expansion rather than asset turnover.
Working Capital Efficiency Improves
Cash conversion cycle shortened to 37 days in Q2 2026 from 53 days in Q4 2025, driven by faster receivables collection and lower inventory days, as per quarterly data, indicating better working capital management.
DSO fell to 46 days from 55 days, and DIO dropped to 53 days from 65 days, while DPO remained stable around 61 days. This improvement suggests that Carrier is managing its working capital more tightly, possibly due to better collection processes and inventory discipline. However, the current ratio of 1.02 remains thin, so the efficiency gains are critical to maintaining liquidity without additional debt.
Leverage Elevated but Manageable
Debt-to-EBITDA rose to 15.0x in Q2 2026 from 10.7x a year earlier, per balance sheet data, reflecting the Viessmann acquisition, though interest coverage of 7.9x remains adequate.
The D/E ratio of 0.92 is higher than Trane's 0.54, indicating a structurally more leveraged balance sheet. However, the interest coverage of 7.9x suggests that earnings are sufficient to service debt, and the company has been deleveraging since the spin-off. The elevated leverage is a direct result of the $13B Viessmann deal, and investors should monitor whether the integration delivers the expected cash flows to reduce debt over time.
Liquidity Cushion Thins
Current ratio fell to 1.02 in Q2 2026 from 1.25 in Q4 2024, with cash at $1.3B, according to balance sheet data, leaving a slim buffer against short-term obligations.
The quick ratio of 0.72 indicates that inventory is a significant component of current assets, which may be less liquid in a downturn. The thin liquidity position is concerning given the high leverage and ongoing transformation costs. However, the strong FCF margin of 12.8% in Q2 2026 provides some cushion, but the company remains vulnerable to working capital swings.
P/E Misleads on Earnings Quality
The trailing P/E of 36.36 is distorted by one-time gains from discontinued operations, as seen in Q4 2024 and Q2 2024, per SEC filings, making forward P/E of 21.49 a more reliable gauge.
The trailing P/E is artificially inflated by the large gains from divestitures, which are not indicative of ongoing earning power. Investors should focus on forward multiples and EV/EBITDA, which adjust for the capital structure and non-recurring items. The forward EV/EBITDA of 15.28 is more comparable to peers, but still reflects a premium that may be justified by the pure-play HVAC strategy.