Latest Ratios: P/E Ratio 16.8x · EV/EBITDA 17.4x · ROE 37.3%. (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 | $14.7B | $20.4B | $21.2B | $18.1B | $15.9B | $15.6B | $18.9B | $16.9B | $16.4B | $17.3B | $14.6B |
| Enterprise Value | $14.9B | $20.6B | $20.7B | $17.5B | $15.7B | $15.4B | $18.6B | $16.6B | $16.1B | $17.0B | $14.4B |
| P/E Ratio → | 16.79 | 19.29 | 25.03 | 21.52 | 19.99 | 19.17 | 22.30 | 20.43 | 19.93 | 21.50 | 20.21 |
| P/S Ratio | 5.34 | 7.48 | 8.25 | 7.49 | 6.84 | 7.21 | 9.14 | 8.46 | 8.54 | 9.31 | 8.41 |
| P/B Ratio | 5.50 | 7.08 | 7.59 | 6.41 | 5.44 | 4.80 | 5.44 | 4.73 | 4.34 | 4.80 | 4.19 |
| P/FCF | 13.15 | 17.39 | 20.59 | 17.74 | 14.81 | 13.16 | 16.53 | 15.65 | 14.53 | 15.97 | 15.82 |
| P/OCF | 12.27 | 17.00 | 20.12 | 17.42 | 14.51 | 12.98 | 16.26 | 15.28 | 14.31 | 15.56 | 15.42 |
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 | — | 7.55 | 8.07 | 7.27 | 6.76 | 7.09 | 9.02 | 8.32 | 8.38 | 9.18 | 8.30 |
| EV / EBITDA | 17.39 | 22.26 | 21.57 | 18.54 | 17.10 | 16.37 | 19.99 | 18.32 | 17.18 | 18.09 | 16.67 |
| EV / EBIT | 17.92 | 21.76 | 21.25 | 17.94 | 16.93 | 16.10 | 20.59 | 18.82 | 16.37 | 17.53 | 16.95 |
| EV / FCF | — | 17.54 | 20.13 | 17.21 | 14.63 | 12.93 | 16.31 | 15.39 | 14.26 | 15.75 | 15.62 |
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 | 86.7% | 86.7% | 87.6% | 88.3% | 86.9% | 88.1% | 89.0% | 89.2% | 89.5% | 88.5% | 88.4% |
| Operating Margin | 30.5% | 30.5% | 34.2% | 37.2% | 38.0% | 41.9% | 43.8% | 44.2% | 47.7% | 49.8% | 48.9% |
| Net Profit Margin | 38.8% | 38.8% | 33.0% | 34.8% | 34.2% | 37.6% | 41.0% | 41.4% | 42.9% | 43.3% | 41.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 37.3% | 37.3% | 30.1% | 29.2% | 25.8% | 24.3% | 24.1% | 22.5% | 22.3% | 22.6% | 20.6% |
| ROA | 15.6% | 15.6% | 14.8% | 14.7% | 13.7% | 13.9% | 14.6% | 14.2% | 14.5% | 15.0% | 14.1% |
| ROIC | 23.2% | 23.2% | 28.6% | 26.9% | 23.2% | 22.0% | 20.9% | 19.6% | 20.1% | 20.8% | 19.2% |
| ROCE | 17.2% | 17.2% | 23.1% | 23.5% | 21.9% | 21.4% | 20.9% | 19.9% | 20.9% | 22.2% | 21.1% |
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 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.68 | 0.68 | 0.01 | — | — | — | — | — | — | — | — |
| Debt / EBITDA | 2.13 | 2.13 | 0.03 | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 0.06 | -0.17 | -0.19 | -0.07 | -0.08 | -0.07 | -0.08 | -0.08 | -0.07 | -0.05 |
| Net Debt / EBITDA | 0.19 | 0.19 | -0.50 | -0.57 | -0.21 | -0.29 | -0.27 | -0.31 | -0.32 | -0.26 | -0.22 |
| Debt / FCF | — | 0.15 | -0.46 | -0.53 | -0.18 | -0.23 | -0.22 | -0.26 | -0.27 | -0.23 | -0.20 |
| Interest Coverage | — | — | 541.06 | 425.17 | 516.72 | 207.43 | 411.00 | 352.72 | 426.61 | 462.36 | 432.62 |
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 | 2.05 | 2.05 | 1.13 | 1.18 | 1.27 | 1.37 | 1.48 | 1.53 | 1.74 | 1.63 | 1.62 |
| Quick Ratio | 2.05 | 2.05 | 1.13 | 1.18 | 1.27 | 1.37 | 1.48 | 1.53 | 1.74 | 1.63 | 1.62 |
| Cash Ratio | 1.56 | 1.56 | 0.71 | 0.80 | 0.89 | 0.99 | 1.09 | 1.13 | 1.32 | 1.17 | 1.18 |
| Asset Turnover | — | 0.35 | 0.45 | 0.42 | 0.41 | 0.37 | 0.35 | 0.35 | 0.33 | 0.34 | 0.33 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 103.00 | 103.71 | 99.42 | 100.92 | 100.70 | 95.59 | 90.72 | 94.35 | 92.93 | 100.30 |
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 | 6.0% | 5.2% | 4.0% | 4.6% | 5.0% | 5.2% | 4.5% | 4.9% | 5.0% | 4.7% | 4.9% |
| FCF Yield | 7.6% | 5.8% | 4.9% | 5.6% | 6.8% | 7.6% | 6.0% | 6.4% | 6.9% | 6.3% | 6.3% |
| Buyback Yield | 9.5% | 6.9% | 6.1% | 7.1% | 8.2% | 8.3% | 6.9% | 7.6% | 6.7% | 5.8% | 6.7% |
| Total Shareholder Yield | 9.5% | 6.9% | 6.1% | 7.1% | 8.2% | 8.3% | 6.9% | 7.6% | 6.7% | 5.8% | 6.7% |
| Shares Outstanding | — | $110M | $113M | $118M | $126M | $134M | $142M | $152M | $159M | $167M | $173M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying CHKP stock.
Check Point Software Technologies Ltd.'s current P/E ratio is 16.8x. The historical average is 22.7x. This places it at the 15th percentile of its historical range.
Check Point Software Technologies Ltd.'s current EV/EBITDA is 17.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 20.9x.
Check Point Software Technologies Ltd.'s return on equity (ROE) is 37.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 26.0%.
Based on historical data, Check Point Software Technologies Ltd. is trading at a P/E of 16.8x. This is at the 15th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Check Point Software Technologies Ltd. has 86.7% gross margin and 30.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Check Point Software Technologies Ltd.'s Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Balance sheet leverage build
Value Multiples Price a Mature Utility
Based on reported figures, CHKP trades at a 15.4x trailing P/E and 12.5x P/FCF, multiples closer to mature infrastructure peers like Cisco at 28.7x than to high-growth cybersecurity names like Palo Alto Networks at 196.7x, suggesting the market prices CHKP as a cash-flow utility.
The forward P/E of 14.2x and forward EV/EBITDA of 11.2x sit well below the trailing figures, which implies the market expects earnings to hold or grow modestly rather than re-rate. A PEG of 1.53 indicates the multiple is only modestly rich relative to its low-single-digit revenue growth, so the valuation appears reasonable rather than stretched. Investors should monitor whether the market continues to discount CHKP as a value stock or begins to credit the recurring Infinity revenue base with a higher multiple.
Margins Strong but Operating Leverage Fading
As reported in financial statements, CHKP's gross margin held between 85.0% and 87.5% across ten quarters, while operating margin compressed from 36.1% in the fourth quarter of 2024 to 26.5% in the latest quarter, signaling negative operating leverage.
The stable gross margin reflects a software-heavy mix with low marginal delivery costs, but the decline in operating margin indicates that SG&A growth is outpacing revenue. Net margin of 27.7% in the latest quarter is substantially supported by interest income on the cash balance, so operating margin is the better gauge of core earning power. Investors should monitor whether operating margin stabilizes near the high-20s or continues to erode under competitive sales spending.
Returns Compressing as Equity Base Expands
According to recent filings, CHKP's ROE fell from 12.1% in the third quarter of 2025 to 6.9% in the latest quarter, while ROIC declined from 8.3% to 3.2% over roughly the same period, indicating decaying capital efficiency.
The compression in ROIC is more pronounced than in ROE, which suggests that the rising invested capital base, including the recent debt build and equity growth, is diluting returns faster than earnings are growing. Given that ROE was historically elevated by a near-zero debt structure, the normalization toward single digits warrants monitoring rather than being read as a permanent deterioration. Returns on capital should be reassessed once the balance sheet and operating margin trajectory clarify.
Debt Build Shifts Leverage Profile
Based on CHKP's reported figures, debt-to-equity rose from effectively zero to 0.75 and debt-to-EBITDA climbed to 10.1x in the latest quarter, a material change for a company that historically carried almost no debt.
Interest coverage is not reported in the supplied data, so debt service comfort cannot be fully verified from these ratios alone and should be treated as data unavailable. The jump in debt-to-EBITDA is steep on a trailing basis, which may indicate that debt service capacity is more constrained than the company's historical profile suggests. Investors should monitor the refinancing schedule and the pace at which cash is rebuilt or debt is reduced.
Cash Cushion Thins Against Current Liabilities
As reported in balance sheet data, CHKP's current ratio eased from 2.05 in the fourth quarter of 2025 to 1.60 in the latest quarter as cash fell from $1.8B to $496M, indicating a narrowing liquidity buffer.
A current ratio of 1.60 with quick ratio equal to current ratio suggests minimal inventory dependence, so liquidity depends mainly on cash and receivables. The reduction in cash reserves narrows the margin of safety under a severe revenue shock, though the ratio remains above 1.0. Investors should monitor whether cash is replenished through operating cash generation or whether further debt-funded capital returns continue to draw down the buffer.
Misapplied Margin Metric Obscures Core Earnings
Based on reported figures, CHKP's 38.8% net margin is frequently cited as a profitability benchmark, but interest income on its large cash balance inflates net income relative to what the core security business generates on an operating basis.
Applying net margin or trailing P/E to CHKP without adjustment may overstate the durability of earnings, since a meaningful share of net income appears to derive from non-operating sources. Operating margin, free cash flow margin, and calculated billings growth are better suited to judging the core business, though the balance sheet shift toward debt complicates the earlier cash-based earnings support. Analysts should strip out non-operating income and reassess earnings power as the cash position continues to change.