Latest Ratios: P/E Ratio 15.1x · EV/EBITDA 10.8x · ROE 35.2%. (1996–2025 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 | $5.6B | $8.1B | $10.0B | $10.3B | $8.1B | $9.4B | $7.7B | $5.6B | $3.4B | $3.7B | $2.5B |
| Enterprise Value | $10.5B | $13.0B | $14.7B | $15.0B | $12.6B | $11.1B | $9.3B | $6.9B | $4.1B | $4.8B | $3.4B |
| P/E Ratio → | 15.12 | 21.39 | 23.51 | 24.62 | 18.51 | 37.88 | 572.94 | 40.59 | 9.59 | 26.56 | 23.43 |
| P/S Ratio | 1.92 | 2.78 | 3.64 | 4.17 | 4.50 | 5.91 | 7.32 | 4.19 | 3.35 | 4.22 | 1.93 |
| P/B Ratio | 5.44 | 7.69 | 9.03 | 11.49 | 14.76 | 30.78 | 21.01 | 10.90 | 7.15 | 5.81 | 3.69 |
| P/FCF | 11.33 | 16.42 | 44.14 | — | 101.76 | 38.75 | — | 44.10 | 69.89 | 36.75 | 14.90 |
| P/OCF | 7.29 | 10.55 | 12.89 | 16.95 | 15.16 | 28.15 | 54.36 | 19.23 | 17.10 | 17.06 | 11.14 |
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 | — | 4.45 | 5.38 | 6.08 | 6.97 | 6.96 | 8.79 | 5.23 | 4.10 | 5.44 | 2.60 |
| EV / EBITDA | 10.78 | 13.35 | 16.09 | 20.25 | 28.62 | 28.30 | 58.63 | 21.94 | 16.35 | 21.91 | 12.61 |
| EV / EBIT | 14.28 | 15.70 | 17.04 | 18.03 | 16.69 | 25.96 | 105.33 | 25.99 | 15.09 | 31.62 | 17.81 |
| EV / FCF | — | 26.33 | 65.14 | — | 157.70 | 45.63 | — | 55.01 | 85.41 | 47.39 | 20.07 |
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 | 33.6% | 33.6% | 34.3% | 32.3% | 31.3% | 27.9% | 18.4% | 25.8% | 28.7% | 28.6% | 24.1% |
| Operating Margin | 25.2% | 25.2% | 25.9% | 22.9% | 17.8% | 17.8% | 5.7% | 16.2% | 18.7% | 16.5% | 14.8% |
| Net Profit Margin | 13.0% | 13.0% | 15.6% | 17.0% | 24.3% | 15.6% | -7.8% | 10.3% | 35.0% | 15.9% | 8.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 35.2% | 35.2% | 42.7% | 57.8% | 102.4% | 73.9% | -18.7% | 27.9% | 63.4% | 21.2% | 16.6% |
| ROA | 5.1% | 5.1% | 6.0% | 6.3% | 9.6% | 8.8% | -3.1% | 6.4% | 17.3% | 6.1% | 4.8% |
| ROIC | 9.4% | 9.4% | 9.3% | 8.0% | 6.9% | 10.9% | 2.4% | 10.4% | 9.6% | 6.7% | 10.1% |
| ROCE | 11.1% | 11.1% | 11.1% | 9.6% | 7.9% | 11.7% | 2.7% | 11.6% | 11.2% | 7.9% | 11.3% |
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 | 4.92 | 4.92 | 4.46 | 5.42 | 8.35 | 6.41 | 4.42 | 2.88 | 1.87 | 1.76 | 1.35 |
| Debt / EBITDA | 5.33 | 5.33 | 5.38 | 6.55 | 10.45 | 5.01 | 10.26 | 4.65 | 3.50 | 5.15 | 3.41 |
| Net Debt / Equity | — | 4.65 | 4.30 | 5.26 | 8.12 | 5.47 | 4.24 | 2.70 | 1.59 | 1.68 | 1.28 |
| Net Debt / EBITDA | 5.03 | 5.03 | 5.19 | 6.36 | 10.15 | 4.27 | 9.83 | 4.35 | 2.97 | 4.92 | 3.25 |
| Debt / FCF | — | 9.92 | 21.00 | — | 55.95 | 6.88 | — | 10.91 | 15.52 | 10.64 | 5.17 |
| Interest Coverage | 2.79 | 2.79 | 2.98 | 3.09 | 5.13 | 5.06 | 1.10 | 3.77 | 6.83 | 3.08 | 4.37 |
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 | 0.60 | 0.60 | 0.57 | 0.53 | 0.55 | 1.27 | 0.55 | 0.73 | 0.94 | 0.57 | 0.53 |
| Quick Ratio | 0.60 | 0.60 | 0.55 | 0.51 | 0.55 | 1.27 | 0.55 | 0.73 | 0.94 | 0.57 | 0.53 |
| Cash Ratio | 0.39 | 0.39 | 0.24 | 0.19 | 0.21 | 0.74 | 0.16 | 0.32 | 0.52 | 0.11 | 0.10 |
| Asset Turnover | — | 0.39 | 0.38 | 0.35 | 0.29 | 0.54 | 0.39 | 0.52 | 0.58 | 0.37 | 0.58 |
| Inventory Turnover | — | — | 154.81 | 96.86 | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 13.78 | 15.11 | 17.72 | 19.26 | 24.75 | 29.75 | 14.22 | 16.57 | 35.23 | 21.70 |
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 | 0.5% | 0.4% | 0.3% | 0.3% | 0.3% | 0.3% | 0.3% | 0.4% | 0.7% | 0.6% | 0.8% |
| Payout Ratio | 8.1% | 8.1% | 6.8% | 6.5% | 5.9% | 10.0% | — | 16.1% | 6.7% | 15.3% | 17.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.6% | 4.7% | 4.3% | 4.1% | 5.4% | 2.6% | 0.2% | 2.5% | 10.4% | 3.8% | 4.3% |
| FCF Yield | 8.8% | 6.1% | 2.3% | — | 1.0% | 2.6% | — | 2.3% | 1.4% | 2.7% | 6.7% |
| Buyback Yield | 7.6% | 5.3% | 1.9% | 0.5% | 2.1% | 3.2% | 0.4% | 1.7% | 16.2% | 5.1% | 1.5% |
| Total Shareholder Yield | 8.2% | 5.6% | 2.2% | 0.8% | 2.5% | 3.4% | 0.7% | 2.1% | 16.9% | 5.7% | 2.3% |
| Shares Outstanding | — | $71M | $75M | $76M | $77M | $78M | $79M | $81M | $83M | $96M | $101M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying CHDN stock.
Churchill Downs Incorporated's current P/E ratio is 15.1x. The historical average is 25.9x. This places it at the 14th percentile of its historical range.
Churchill Downs Incorporated's current EV/EBITDA is 10.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.8x.
Churchill Downs Incorporated's return on equity (ROE) is 35.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 21.3%.
Based on historical data, Churchill Downs Incorporated is trading at a P/E of 15.1x. This is at the 14th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Churchill Downs Incorporated's current dividend yield is 0.54% with a payout ratio of 8.1%.
Churchill Downs Incorporated has 33.6% gross margin and 25.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Churchill Downs Incorporated's Debt/EBITDA ratio is 5.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
High leverage and thin liquidity
Metrics are mathematically derived from official filings.
Discounted Growth, Seasonal Earnings
CHDN trades at 16.2x trailing earnings but only 12.2x forward, with a PEG of 0.16, implying the market expects significant earnings growth, according to current valuation multiples.
The forward P/E of 12.2 is well below the trailing multiple, suggesting the market is pricing in a substantial earnings uplift, likely from the Kentucky Derby quarter and ongoing operational improvements. The PEG of 0.16 is exceptionally low, but this is distorted by the seasonal earnings pattern; investors should compare against the average annual growth rate rather than a single quarter's spike. Relative to peers, CHDN's EV/EBITDA of 11.2 is higher than Boyd's 7.0 but lower than DraftKings' 47.6, indicating a middle-ground valuation that may not fully reflect its asset-heavy model.
Seasonal Margin Peaks, Structural Strength
Q2 2026 operating margin hit 36.4% versus 14-21% in other quarters, as per financial statements, revealing a highly seasonal but fundamentally strong profit engine.
The gross margin anomaly in Q2 2026 (100%) is a data artifact, but the operating margin of 36.4% in that quarter versus 14-21% in off-peak quarters underscores the extreme seasonality of the business. Excluding Q2, net margins hover around 10-12%, which is still respectable for a capital-intensive gaming operator. The consistency of off-peak margins around 20% operating suggests that the core operations are profitable, but the reliance on the Derby quarter for the bulk of annual profits is a structural risk that investors should monitor.
ROIC Peaks in Q2, Decays Off-Season
ROIC swings from 4.5% in Q2 2026 to 1.2-1.8% in other quarters, based on reported figures, indicating that capital efficiency is heavily concentrated in the Derby season.
The annualized ROIC, if we consider the Q2 peak, would be around 18%, but the off-peak quarters show ROIC of only 1-2%, which is below the cost of capital. This suggests that the company's invested capital base is not generating adequate returns outside the peak season, potentially due to high fixed assets and goodwill. The trend over the past two years shows no significant improvement in off-peak ROIC, implying that the capital deployed in non-Derby assets may not be earning its keep. Investors should assess whether the company can improve off-season utilization or if the capital intensity is a permanent drag.
Working Capital Efficiency Masked by Seasonality
CCC is negative in Q1 and Q2 2026 (-23 and -24 days), as per cash flow data, indicating that CHDN collects cash from customers before paying suppliers, a favorable position.
The negative cash conversion cycle in the first half of the year is driven by the Derby season, where advance ticket sales and event-related receivables are collected quickly, while payables are extended. However, DSO of 11-18 days is low, reflecting the cash nature of gaming and pari-mutuel operations. Asset turnover is extremely low at 0.09-0.13, which is typical for a capital-intensive business with large property and goodwill. The efficiency metrics suggest that working capital management is not a primary concern, but the low asset turnover highlights the need for high margins to generate adequate returns.
Debt Burden Intensifies, Coverage Thins
D/EBITDA rose to 11.5 in Q2 2026 from 12.8 a year earlier, while interest coverage fell to 5.7 from 5.0, based on reported figures, indicating a strained balance sheet.
The D/EBITDA of 11.5 is extremely high, even for a gaming company, and is well above the 4-5x typically considered manageable. Interest coverage of 5.7x in Q2 2026 is adequate but drops to 1.8-2.6x in off-peak quarters, suggesting that debt service becomes tight outside the Derby season. The company's equity base is thin at $1.0-1.3B against $4.8-5.2B of debt, leaving little cushion for adverse events. This leverage profile appears to be a structural feature of the business, but it amplifies the risk of any downturn in the core racing and gaming operations.
Liquidity Cushion Dangerously Thin
Current ratio fell to 0.36 in Q2 2026 from 0.57 a year earlier, with cash of only $196M against $4.8B debt, as per balance sheet data, signaling a fragile liquidity position.
A current ratio of 0.36 indicates that CHDN would struggle to cover short-term obligations if access to credit markets were disrupted. The quick ratio is identical, suggesting that inventory is not a significant buffer. The company relies heavily on operating cash flows from the Derby quarter to service debt, but off-peak quarters generate minimal cash, as evidenced by FCF margins of 0.2% in Q4 2024. This thin liquidity, combined with high leverage, suggests that the company is vulnerable to any unexpected cash flow disruption, such as a poor Derby turnout or a regulatory change.
Misapplied Metric: Annualized ROE
The most misapplied ratio for CHDN is annualized ROE, which is distorted by extreme seasonality and the thin equity base, as per quarterly data.
Quarterly ROE figures range from 3.5% to 22.3%, and annualizing a single quarter's ROE would be misleading because the Derby quarter generates a disproportionate share of earnings. For example, Q2 2026 ROE of 19% annualizes to 76%, but the actual full-year ROE is likely closer to 15-20% given the off-peak quarters. Additionally, the thin equity base (due to heavy buybacks) inflates ROE, making it appear more attractive than the underlying return on invested capital. Investors should instead focus on ROIC, which is more stable and reflects the true return on all capital employed, or use a trailing twelve-month ROE to smooth seasonality.