Latest Ratios: P/E Ratio 88.0x · EV/EBITDA 83.4x · ROE 34.4%. (2020–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $41.2B | $34.7B | $7.8B | $2.8B | $1.2B | $1.6B | — | — |
| Enterprise Value | $40.0B | $33.6B | $7.6B | $2.7B | $1.1B | $1.4B | — | — |
| P/E Ratio → | 87.98 | 73.46 | 148.45 | — | — | — | — | — |
| P/S Ratio | 30.84 | 25.99 | 17.86 | 14.36 | 6.45 | 15.04 | — | — |
| P/B Ratio | 20.14 | 16.82 | 11.44 | 5.13 | 3.42 | 4.79 | — | — |
| P/FCF | 101.18 | 85.27 | 268.72 | 162.22 | — | — | — | — |
| P/OCF | 88.69 | 74.75 | 119.83 | 84.66 | — | — | — | — |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 25.14 | 17.35 | 14.09 | 5.95 | 12.76 | — | — |
| EV / EBITDA | 83.40 | 69.91 | 126.45 | — | — | — | — | — |
| EV / EBIT | 89.97 | 70.59 | 138.12 | — | — | — | — | — |
| EV / FCF | — | 82.46 | 261.13 | 159.11 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 68.0% | 68.0% | 64.8% | 61.9% | 57.7% | 60.1% | 65.2% | 85.6% |
| Operating Margin | 33.3% | 33.3% | 8.7% | -19.2% | -11.5% | -20.6% | -43.0% | 3.8% |
| Net Profit Margin | 35.4% | 35.4% | 11.9% | -14.7% | -9.0% | -20.8% | -46.9% | 2.5% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| ROE | 34.4% | 34.4% | 8.5% | -6.4% | -4.9% | -15.9% | — | — |
| ROA | 30.4% | 30.4% | 7.4% | -5.7% | -4.3% | -8.3% | -20.9% | 1.2% |
| ROIC | 48.4% | 48.4% | 6.0% | -7.5% | -9.2% | -17.9% | — | — |
| ROCE | 31.8% | 31.8% | 6.0% | -8.0% | -5.9% | -8.9% | -21.7% | 2.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.02 | 0.03 | 0.04 | 0.05 | — | — |
| Debt / EBITDA | 0.04 | 0.04 | 0.27 | — | — | — | — | — |
| Net Debt / Equity | — | -0.55 | -0.32 | -0.10 | -0.27 | -0.72 | — | — |
| Net Debt / EBITDA | -2.38 | -2.38 | -3.68 | — | — | — | — | -19.03 |
| Debt / FCF | — | -2.81 | -7.59 | -3.11 | — | — | — | — |
| Interest Coverage | — | — | — | — | — | — | — | — |
Net cash position: cash ($1.2B) exceeds total debt ($21M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 10.15 | 10.15 | 6.62 | 11.88 | 10.58 | 12.54 | 11.00 | 5.16 |
| Quick Ratio | 8.88 | 8.88 | 5.79 | 11.30 | 9.09 | 11.50 | 10.43 | 5.04 |
| Cash Ratio | 7.32 | 7.32 | 4.00 | 9.19 | 7.02 | 9.79 | 8.28 | 3.98 |
| Asset Turnover | — | 0.58 | 0.54 | 0.32 | 0.46 | 0.28 | 0.38 | 0.50 |
| Inventory Turnover | 1.70 | 1.70 | 1.71 | 2.84 | 1.69 | 1.55 | 2.87 | 3.40 |
| Days Sales Outstanding | — | 63.80 | 135.50 | 153.63 | 116.89 | 135.73 | 113.22 | 122.30 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.1% | 1.4% | 0.7% | — | — | — | — | — |
| FCF Yield | 1.0% | 1.2% | 0.4% | 0.6% | — | — | — | — |
| Buyback Yield | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $188M | $181M | $155M | $147M | $145M | $140M | $73M |
Includes 30+ ratios · 7 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying CRDO stock.
Credo Technology Group Holding Ltd's current P/E ratio is 88.0x. The historical average is 111.0x. This places it at the 50th percentile of its historical range.
Credo Technology Group Holding Ltd's current EV/EBITDA is 83.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 69.9x.
Credo Technology Group Holding Ltd's return on equity (ROE) is 34.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 3.2%.
Based on historical data, Credo Technology Group Holding Ltd is trading at a P/E of 88.0x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Credo Technology Group Holding Ltd has 68.0% gross margin and 33.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Credo Technology Group Holding Ltd's Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Hyperscale CapEx Cycle Dependency
Metrics are mathematically derived from official filings.
Premium Pricing Reflects Hyper-Growth Expectations
Credo's forward P/E of 27.21, as reported in recent financial statements, appears to price in a significant earnings expansion, contrasting sharply with its trailing P/E of 67.96 and suggesting the market is discounting a rapid normalization of its current hyper-growth phase.
The substantial discount from the trailing to forward P/E multiple indicates the market is not valuing Credo on its current, likely peak, earnings power but on a future, more sustainable earnings base. This forward multiple, while still a premium to many industrial peers, is more aligned with high-growth semiconductor firms, suggesting the market is pricing Credo as a structural winner in AI networking rather than a cyclical beneficiary. The valuation warrants scrutiny of whether the implied forward growth rate is achievable given the company's customer concentration and the cyclical nature of hyperscale capital expenditure.
Margin Expansion Driven by Operating Leverage
Operating margin has surged from negative territory to 25.2% in the latest quarter, as shown in the ratio data, indicating that the company's high fixed-cost R&D base is now being leveraged across a massively expanded revenue base, though a sequential decline from 35.7% suggests potential mix or cost headwinds.
The dramatic swing from a -24.2% operating margin ten quarters ago to a sustained positive margin demonstrates powerful operating leverage, a key characteristic of a successful fabless semiconductor ramp. The recent sequential decline in both gross and operating margins, despite record revenue, introduces a critical question about sustainability; it may indicate pricing pressure, an unfavorable shift in product mix toward lower-margin AECs, or the re-acceleration of R&D investment for next-generation products. Investors should monitor whether this is a temporary blip or the beginning of a margin normalization trend.
ROIC Inflection Signals Compounding Potential
Return on Invested Capital has inflected from negative to a trailing twelve-month average near 10%, based on the provided quarterly data, suggesting the business model is now generating returns above its likely cost of capital, a critical milestone for long-term value creation.
The transition from negative ROIC to a positive and expanding trend is the most important fundamental shift in Credo's financial profile over the last two years. This inflection is driven by the combination of expanding operating margins and improved asset turnover as revenue scales. However, the recent dip in ROIC from 16.3% to 5.7% warrants investigation; it could be a function of the large cash balance and goodwill from the recent acquisition temporarily inflating the invested capital base before the acquired assets contribute fully to earnings.
Working Capital Strains Under Explosive Growth
Days Inventory Outstanding has ballooned to 151 days in the latest quarter, as reported in the financial data, a significant increase from 83 days a year ago, suggesting the company is aggressively building inventory to meet hyperscale deployment schedules, which temporarily consumes cash.
The sharp rise in DIO and the corresponding expansion of the Cash Conversion Cycle to 145 days are classic symptoms of a company scaling production to meet explosive, lumpy demand. While this build-up is necessary to fulfill large customer orders, it represents a significant working capital investment that temporarily masks strong underlying cash generation. The efficiency of this inventory management will be a key test; a failure to convert this inventory into sales could lead to future write-downs, especially if hyperscale demand pauses.
The Misapplied Metric: Trailing P/E
The trailing P/E ratio of 67.96 is the most commonly misapplied metric for Credo, as it captures a period of unrepresentative, sub-scale earnings and obscures the powerful operating leverage now evident in the business model.
Using the trailing P/E to value Credo is misleading because it reflects a historical period when the company was still in a heavy investment phase with negative or minimal profitability. The metric fails to capture the inflection point the business has reached, where revenue has scaled 205% year-over-year and operating margins have expanded dramatically. A more appropriate metric is the forward P/E or EV/EBITDA, which attempts to value the company based on its current, scaled earnings power and the sustainability of its high-margin, fabless model.