Latest Ratios: P/E Ratio 12.2x · EV/EBITDA 5.1x · ROE 22.7%. (2022–2025 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 |
|---|---|---|---|---|---|
| Market Cap | $2.1B | $1.9B | — | — | — |
| Enterprise Value | $1.1B | $-4447707297 | — | — | — |
| P/E Ratio → | 12.25 | 1.94 | — | — | — |
| P/S Ratio | 1.09 | 0.15 | — | — | — |
| P/B Ratio | 1.60 | 0.25 | — | — | — |
| P/FCF | 11.78 | 1.61 | — | — | — |
| P/OCF | 8.54 | 1.17 | — | — | — |
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 |
|---|---|---|---|---|---|
| EV / Revenue | — | -0.34 | — | — | — |
| EV / EBITDA | 5.14 | -2.98 | — | — | — |
| EV / EBIT | 5.70 | -2.75 | — | — | — |
| EV / FCF | — | -3.73 | — | — | — |
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 |
|---|---|---|---|---|---|
| Gross Margin | 45.8% | 45.8% | 45.8% | 42.5% | 27.1% |
| Operating Margin | 10.4% | 10.4% | 23.3% | 23.1% | -23.6% |
| Net Profit Margin | 9.1% | 9.1% | 20.3% | 17.3% | -18.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| ROE | 22.7% | 22.7% | 159.0% | 1558.3% | — |
| ROA | 13.0% | 13.0% | 52.8% | 48.0% | -23.0% |
| ROIC | 82.9% | 82.9% | — | — | — |
| ROCE | 20.9% | 20.9% | 99.8% | 135.6% | -120.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Debt / Equity | 0.17 | 0.17 | 0.20 | 0.27 | — |
| Debt / EBITDA | 0.85 | 0.85 | 0.19 | 0.10 | — |
| Net Debt / Equity | — | -0.84 | -1.53 | -5.40 | — |
| Net Debt / EBITDA | -4.26 | -4.26 | -1.43 | -2.04 | — |
| Debt / FCF | — | -5.34 | -1.62 | -1.16 | -4.25 |
| Interest Coverage | — | — | — | — | — |
Net cash position: cash ($7.6B) exceeds total debt ($1.3B)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Current Ratio | 3.11 | 3.11 | 2.37 | 1.82 | 0.93 |
| Quick Ratio | 3.03 | 3.03 | 2.31 | 1.79 | 0.81 |
| Cash Ratio | 2.80 | 2.80 | 2.11 | 1.67 | 0.67 |
| Asset Turnover | — | 1.13 | 1.88 | 1.58 | 1.25 |
| Inventory Turnover | 30.64 | 30.64 | 50.91 | 64.32 | 10.81 |
| Days Sales Outstanding | — | 4.19 | 5.78 | 9.92 | 19.37 |
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 |
|---|---|---|---|---|---|
| Dividend Yield | 10.2% | 64.4% | — | — | — |
| Payout Ratio | 105.3% | 105.3% | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Earnings Yield | 8.2% | 51.7% | — | — | — |
| FCF Yield | 8.5% | 62.2% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 10.2% | 64.4% | — | — | — |
| Shares Outstanding | — | $165M | $184M | $184M | $184M |
Includes 30+ ratios · 4 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying CHA stock.
Chagee Holdings Limited American Depositary Shares's current P/E ratio is 12.2x. The historical average is 1.9x. This places it at the 100th percentile of its historical range.
Chagee Holdings Limited American Depositary Shares's current EV/EBITDA is 5.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Chagee Holdings Limited American Depositary Shares's return on equity (ROE) is 22.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 90.8%.
Based on historical data, Chagee Holdings Limited American Depositary Shares is trading at a P/E of 12.2x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Chagee Holdings Limited American Depositary Shares's current dividend yield is 10.17% with a payout ratio of 105.3%.
Chagee Holdings Limited American Depositary Shares has 45.8% gross margin and 10.4% operating margin. Operating margin between 10-20% is typical for established companies.
Chagee Holdings Limited American Depositary Shares's Debt/EBITDA ratio is 0.9x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin compression eroding returns
Extreme Discount Reflects Growth Normalization
Chagee's forward P/E of 1.34 and EV/EBITDA of 0.65 represent a profound discount to peers, suggesting the market is pricing in a severe and permanent contraction in its earnings power following its post-IPO growth deceleration.
The valuation multiples are exceptionally low relative to the peer group, where Dutch Bros trades at a forward EV/EBITDA of 24.24. This extreme discount appears to be a direct reflection of the market's skepticism regarding the sustainability of Chagee's profitability, given the sharp decline in operating margins from 28.2% in 2024Q1 to 15.4% in 2026Q2. The 9.3% dividend yield further underscores that the market is treating the company more as a value or income play than a growth story, a significant shift from its recent history.
Gross Margin Erosion Undermines Core Earning Power
Gross margin has contracted by 1,110 basis points from its 2025Q1 peak to 37.4% in 2026Q2, a trend that has directly driven operating margin compression and suggests the company's core pricing power or cost structure is under significant pressure.
The decline in gross margin is the most critical profitability trend, as it has directly eroded operating leverage and caused net margin to fall from 23.7% to 13.7% over the same period. While the company remains profitable, the trajectory indicates that the high-margin growth phase is over, and the business is now operating with a fundamentally different cost profile. This margin compression appears to be the primary driver behind the 'Strained' profitability signal, as it directly impacts the company's ability to generate returns on its expanding asset base.
ROIC Volatility Signals Unstable Capital Efficiency
Return on Invested Capital has been highly erratic, swinging from a negative -2.6% in 2025Q4 to 17.4% in 2026Q2, indicating that the company's ability to generate returns on its capital base is not yet on a stable or predictable trajectory.
The extreme volatility in ROIC, particularly the negative reading in 2025Q4, suggests that the company's capital deployment is not yet yielding consistent returns. This instability is likely driven by the rapid expansion of the asset base (from $2.9B to $12.2B) coinciding with a period of margin compression. The current ROIC of 17.4% is respectable but must be viewed in the context of this volatility; it is unclear if this represents a sustainable return level or a temporary rebound.
Asset Turnover Decline Signals Scaling Challenges
Asset turnover has fallen from a peak of 0.83 in 2023Q4 to 0.29 in 2026Q2, a 65% decline that indicates the company is generating significantly less revenue per dollar of assets as it scales, a trend that warrants close monitoring.
The declining asset turnover ratio is a direct consequence of the massive expansion in the asset base, which has outpaced revenue growth. This trend, combined with the negative cash conversion cycle, suggests that while the company is efficient at managing working capital (collecting cash quickly and paying suppliers slowly), it is becoming less efficient at deploying its growing asset base to generate sales. This declining efficiency is a key factor behind the compression in ROA from 17.9% to 3.9% over the same period.
Minimal Leverage Amidst Cash Accumulation
With a debt-to-equity ratio of just 0.17 and a cash position of $6.6B against $3.8B in total liabilities, Chagee maintains a fortress-like balance sheet that provides substantial financial flexibility and minimal refinancing risk.
The company's leverage profile is exceptionally conservative, with a D/E ratio that has remained below 0.30 throughout the entire period. This low leverage, combined with a massive cash hoard, suggests that the company is not reliant on debt financing for its operations or growth. The primary risk is not financial distress but rather the opportunity cost of holding such a large cash balance, which may be a drag on returns on equity if not deployed effectively.
The Misleading Signal of High Dividend Yield
The 9.3% dividend yield is the most commonly misapplied ratio for this business model, as it obscures the underlying margin compression and may be unsustainable if free cash flow generation does not stabilize.
Investors may be attracted to the high dividend yield, but this metric is misleading for a company experiencing rapid margin erosion and volatile free cash flow. The yield is high precisely because the stock price has fallen dramatically, reflecting the market's concern about future earnings. Given that FCF margin has swung from 33.7% to 10.5% and was negative in 2025Q4, the sustainability of this dividend is questionable. A more appropriate metric to assess shareholder returns would be the payout ratio relative to normalized, sustainable earnings, not the current yield.