Latest Ratios: P/E Ratio 430.5x · EV/EBITDA 115.9x · ROE 4.4%. (1997–2025 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 | $51.8B | $27.6B | $9.3B | $6.1B | $7.3B | $8.5B | $6.1B | $5.9B | $4.5B | $3.6B | $2.9B |
| Enterprise Value | $52.3B | $28.1B | $10.0B | $6.8B | $7.5B | $7.9B | $5.9B | $5.7B | $4.4B | $3.9B | $3.4B |
| P/E Ratio → | 430.54 | 223.44 | 110.29 | 23.99 | 48.25 | 17.02 | 16.98 | 23.06 | — | 2.82 | 38.00 |
| P/S Ratio | 10.86 | 5.78 | 2.33 | 1.40 | 2.02 | 2.35 | 1.74 | 1.64 | 1.45 | 1.29 | 1.12 |
| P/B Ratio | 19.48 | 10.11 | 3.32 | 2.15 | 2.71 | 2.82 | 2.45 | 2.69 | 2.33 | 1.69 | 3.81 |
| P/FCF | 77.86 | 41.46 | 24.71 | 98.62 | — | 18.42 | 14.95 | 16.69 | 27.80 | 25.76 | 16.02 |
| P/OCF | 64.26 | 34.22 | 18.15 | 36.40 | — | 15.71 | 12.44 | 14.16 | 19.60 | 15.39 | 10.09 |
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 | — | 5.89 | 2.50 | 1.54 | 2.07 | 2.18 | 1.67 | 1.60 | 1.44 | 1.40 | 1.32 |
| EV / EBITDA | 115.92 | 62.23 | 30.91 | 12.85 | 18.96 | 12.57 | 9.50 | 12.15 | 13.06 | 11.58 | 11.52 |
| EV / EBIT | 168.26 | 113.19 | 45.93 | 16.26 | 32.00 | 15.97 | 12.07 | 16.26 | 21.77 | 18.44 | 23.94 |
| EV / FCF | — | 42.20 | 26.55 | 109.02 | — | 17.08 | 14.31 | 16.27 | 27.48 | 27.87 | 18.82 |
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 | 42.0% | 42.0% | 42.8% | 42.8% | 43.0% | 47.6% | 46.8% | 43.2% | 42.5% | 44.5% | 44.7% |
| Operating Margin | 6.5% | 6.5% | 4.8% | 8.8% | 7.1% | 13.7% | 13.8% | 9.7% | 7.4% | 7.7% | 6.0% |
| Net Profit Margin | 2.6% | 2.6% | 2.1% | 5.8% | 4.2% | 13.8% | 10.2% | 7.1% | -11.1% | 45.0% | 2.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 4.4% | 4.4% | 3.0% | 9.2% | 5.3% | 18.1% | 15.4% | 12.4% | -17.0% | 87.0% | 10.5% |
| ROA | 2.1% | 2.1% | 1.5% | 4.8% | 3.1% | 11.1% | 8.9% | 6.6% | -8.9% | 36.9% | 2.6% |
| ROIC | 6.9% | 6.9% | 4.1% | 9.0% | 7.3% | 16.0% | 17.1% | 13.3% | 8.0% | 8.7% | 9.8% |
| ROCE | 6.8% | 6.8% | 4.1% | 8.8% | 6.4% | 13.4% | 15.1% | 11.9% | 8.1% | 8.8% | 7.8% |
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 | 0.58 | 0.58 | 0.58 | 0.58 | 0.44 | 0.27 | 0.33 | 0.35 | 0.36 | 0.44 | 1.68 |
| Debt / EBITDA | 3.51 | 3.51 | 5.03 | 3.14 | 2.98 | 1.28 | 1.34 | 1.61 | 2.04 | 2.77 | 4.33 |
| Net Debt / Equity | — | 0.18 | 0.25 | 0.23 | 0.07 | -0.20 | -0.10 | -0.07 | -0.03 | 0.14 | 0.67 |
| Net Debt / EBITDA | 1.09 | 1.09 | 2.15 | 1.23 | 0.48 | -0.99 | -0.42 | -0.32 | -0.15 | 0.88 | 1.72 |
| Debt / FCF | — | 0.74 | 1.85 | 10.41 | — | -1.34 | -0.63 | -0.42 | -0.32 | 2.11 | 2.80 |
| Interest Coverage | 2.70 | 2.70 | 2.22 | 4.48 | 4.45 | 15.75 | 15.56 | 9.36 | 3.69 | 3.80 | 2.53 |
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 | 2.73 | 2.73 | 3.52 | 3.81 | 3.25 | 3.48 | 3.42 | 2.80 | 2.20 | 1.91 | 2.24 |
| Quick Ratio | 2.09 | 2.09 | 2.70 | 2.68 | 2.34 | 3.07 | 2.96 | 2.39 | 1.93 | 1.65 | 2.00 |
| Cash Ratio | 1.00 | 1.00 | 1.25 | 1.20 | 1.10 | 1.76 | 1.63 | 1.20 | 0.93 | 0.89 | 1.18 |
| Asset Turnover | — | 0.81 | 0.71 | 0.78 | 0.72 | 0.74 | 0.84 | 0.92 | 0.82 | 0.71 | 0.90 |
| Inventory Turnover | 3.35 | 3.35 | 2.80 | 2.39 | 2.19 | 5.07 | 5.46 | 5.88 | 6.77 | 5.82 | 6.81 |
| Days Sales Outstanding | — | 74.68 | 113.62 | 98.82 | 110.61 | 101.29 | 85.48 | 85.53 | 95.88 | 82.58 | 82.02 |
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 | 0.2% | 0.4% | 0.9% | 4.2% | 2.1% | 5.9% | 5.9% | 4.3% | — | 35.4% | 2.6% |
| FCF Yield | 1.3% | 2.4% | 4.0% | 1.0% | — | 5.4% | 6.7% | 6.0% | 3.6% | 3.9% | 6.2% |
| Buyback Yield | 0.6% | 1.2% | 3.2% | 4.6% | 7.5% | 1.6% | 1.7% | 3.1% | 2.6% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.6% | 1.2% | 3.2% | 4.6% | 7.5% | 1.6% | 1.7% | 3.1% | 2.6% | 0.0% | 0.0% |
| Shares Outstanding | — | $145M | $146M | $149M | $152M | $157M | $156M | $158M | $144M | $170M | $151M |
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying CIEN stock.
Ciena Corporation's current P/E ratio is 430.5x. The historical average is 37.9x. This places it at the 100th percentile of its historical range.
Ciena Corporation's current EV/EBITDA is 115.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 22.8x.
Ciena Corporation's return on equity (ROE) is 4.4%. The historical average is -20.7%.
Based on historical data, Ciena Corporation is trading at a P/E of 430.5x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ciena Corporation has 42.0% gross margin and 6.5% operating margin.
Ciena Corporation's Debt/EBITDA ratio is 3.5x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Customer concentration and tech shift
Metrics are mathematically derived from official filings.
Valuation Reflects Cyclical Re-Rating
Ciena's forward P/E of 47.61 represents a sharp discount to its trailing P/E of 400.59, implying the market is pricing in a significant earnings recovery but remains cautious about sustainability beyond the near-term hyperscaler capex cycle.
The forward multiples, such as the 32.14 EV/EBITDA, suggest analysts expect operating leverage to materialize but are not assigning the premium multiples typical of pure-play software or high-growth cloud infrastructure firms. The valuation gap versus peers like Calix indicates the market still categorizes Ciena as a cyclical hardware vendor, potentially underappreciating its role in AI backend infrastructure.
Operating Leverage Unlocks Margin Expansion
Operating margin surged to 18.0% in 2026Q3 from just 3.1% in 2025Q2, demonstrating powerful operating leverage as revenue scales over a high fixed-cost R&D base. This trend is the primary driver of the earnings inflection.
Gross margin expansion to 45.4% indicates a favorable mix shift toward higher-value proprietary WaveLogic chipsets, but the more critical development is the conversion of incremental revenue to operating income. The sustained improvement suggests the cost structure is becoming more efficient, though the 15.9% net margin indicates that significant operating expenses still offset a portion of this gross margin benefit.
ROIC Inflection Suggests Value Creation
ROIC improved dramatically to 10.6% in 2026Q3 from a negligible 0.6% in 2024Q3, indicating the business is beginning to earn returns above its implied cost of capital after a prolonged period of value erosion.
This inflection is driven by the dual tailwind of margin expansion and improving asset turnover, which rose to 0.24 from 0.17 over the same period. The sustainability of this ROIC trend hinges on whether the current demand cycle can normalize at a level that supports continued high utilization of its R&D and manufacturing investments.
Deleveraging Creates Strategic Flexibility
The debt-to-equity ratio collapsed to 0.08 in 2026Q3 from a stable 0.57-0.58 range, as reported in the balance sheet, virtually eliminating interest rate risk and creating a strong balance sheet to navigate industry cyclicality.
With interest coverage at a robust 54.5x, debt service is no longer a material concern, allowing management to focus capital allocation on R&D and opportunistic M&A. This financial flexibility is a key differentiator from more leveraged peers and positions the company to invest through potential downturns.
Profitability Leadership vs. Valuation Discount
Ciena's 15.9% net margin in 2026Q3 significantly outperforms peers like Calix (1.8%) and Viavi (3.2%), yet it trades at a forward P/E discount, suggesting the market may be underappreciating its earnings quality relative to legacy telecom suppliers.
The company's leverage profile is also markedly healthier than peers like Lumentum (2.30 D/E) and Viavi (0.89 D/E). This operational and financial superiority, however, has not translated into a valuation premium, which may reflect investor skepticism about the durability of the current demand surge.
P/E Ratio's Cyclicality Misleads Valuation
The most misapplied ratio is Ciena's trailing P/E of 400.59, which is rendered meaningless by the cyclical earnings trough and massive non-cash charges in prior periods. Forward P/E or EV/EBITDA are far more reliable metrics for assessing valuation.
The P/E ratio is distorted by the near-zero net income in 2025Q2 and 2024Q3, making it an unreliable indicator of intrinsic value. Given the lumpy, project-based revenue recognition and heavy R&D investment, analysts should focus on forward-looking EV/EBITDA or price-to-sales metrics to gauge valuation in a cyclical recovery context.