Latest Ratios: P/E Ratio 42.8x · EV/EBITDA 30.1x · ROE 34.5%. (2003–2025 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 | $34.5B | $26.9B | $32.1B | $52.8B | $48.4B | $57.6B | $36.0B | $20.2B | $10.6B | $5.0B | $5.0B |
| Enterprise Value | $35.0B | $27.4B | $34.1B | $54.8B | $49.9B | $58.7B | $37.1B | $20.9B | $10.4B | $4.8B | $4.9B |
| P/E Ratio → | 42.84 | 31.76 | 54.77 | 95.45 | 141.55 | 263.22 | 72.78 | 202.56 | — | — | — |
| P/S Ratio | 7.41 | 5.77 | 7.96 | 14.58 | 16.64 | 23.51 | 18.71 | 13.68 | 10.24 | 6.89 | 8.71 |
| P/B Ratio | 13.22 | 9.80 | 15.26 | 25.52 | 22.71 | 28.19 | 19.74 | 22.88 | 15.93 | 11.81 | 17.59 |
| P/FCF | 32.07 | 24.98 | 50.89 | 103.15 | 158.88 | 1079.96 | 130.32 | 150.12 | 188.35 | 190.52 | 9985.18 |
| P/OCF | 23.98 | 18.68 | 32.44 | 70.54 | 72.31 | 130.08 | 75.79 | 64.20 | 85.77 | 53.84 | 88.84 |
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 | — | 5.87 | 8.45 | 15.14 | 17.15 | 23.96 | 19.24 | 14.16 | 10.13 | 6.75 | 8.56 |
| EV / EBITDA | 30.10 | 23.53 | 41.67 | 69.96 | 91.23 | 159.55 | 101.12 | 109.45 | — | — | — |
| EV / EBIT | 38.41 | 24.74 | 46.81 | 75.03 | 121.92 | 212.87 | 119.70 | 127.08 | — | — | — |
| EV / FCF | — | 25.42 | 54.03 | 107.11 | 163.81 | 1100.70 | 134.02 | 155.43 | 186.22 | 186.40 | 9809.58 |
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 | 60.0% | 60.0% | 60.5% | 63.2% | 64.7% | 68.6% | 66.4% | 63.1% | 64.4% | 68.5% | 66.0% |
| Operating Margin | 19.6% | 19.6% | 14.9% | 16.5% | 13.4% | 10.9% | 15.5% | 9.6% | -18.1% | -5.9% | -11.1% |
| Net Profit Margin | 17.9% | 17.9% | 14.3% | 14.9% | 11.7% | 8.9% | 25.6% | 6.8% | -12.3% | -7.0% | -11.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 34.5% | 34.5% | 27.6% | 25.8% | 16.3% | 11.2% | 36.4% | 13.1% | -23.5% | -14.3% | -26.0% |
| ROA | 13.0% | 13.0% | 9.0% | 9.3% | 6.6% | 4.7% | 14.8% | 4.7% | -9.0% | -7.7% | -18.9% |
| ROIC | 18.7% | 18.7% | 11.0% | 11.6% | 8.7% | 6.6% | 10.1% | 10.0% | -32.6% | -12.5% | -28.7% |
| ROCE | 23.5% | 23.5% | 14.5% | 14.5% | 10.1% | 6.7% | 10.5% | 7.6% | -15.2% | -8.0% | -24.3% |
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 | 0.51 | 0.51 | 1.23 | 1.25 | 1.01 | 1.06 | 1.01 | 1.31 | 1.53 | 0.80 | 0.02 |
| Debt / EBITDA | 1.19 | 1.19 | 3.16 | 3.31 | 3.92 | 5.87 | 5.02 | 6.07 | — | — | — |
| Net Debt / Equity | — | 0.17 | 0.94 | 0.98 | 0.70 | 0.54 | 0.56 | 0.81 | -0.18 | -0.26 | -0.31 |
| Net Debt / EBITDA | 0.41 | 0.41 | 2.42 | 2.59 | 2.75 | 3.01 | 2.79 | 3.74 | — | — | — |
| Debt / FCF | — | 0.44 | 3.14 | 3.96 | 4.93 | 20.74 | 3.69 | 5.31 | -2.13 | -4.12 | -175.60 |
| Interest Coverage | 60.48 | 60.48 | 38.32 | 36.00 | 22.01 | 14.66 | 3.66 | 2.73 | -4.57 | -2.80 | -91.71 |
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 | 1.88 | 1.88 | 1.47 | 2.84 | 1.99 | 5.11 | 5.58 | 5.47 | 7.64 | 5.36 | 2.73 |
| Quick Ratio | 1.59 | 1.59 | 1.28 | 2.48 | 1.83 | 4.62 | 5.19 | 5.13 | 7.32 | 5.04 | 2.29 |
| Cash Ratio | 0.93 | 0.93 | 0.88 | 1.75 | 1.34 | 3.79 | 4.41 | 4.26 | 6.23 | 3.95 | 1.21 |
| Asset Turnover | — | 0.74 | 0.62 | 0.58 | 0.54 | 0.50 | 0.45 | 0.62 | 0.54 | 0.79 | 1.42 |
| Inventory Turnover | 2.96 | 2.96 | 2.94 | 2.38 | 3.35 | 2.15 | 2.76 | 4.55 | 5.20 | 5.01 | 4.29 |
| Days Sales Outstanding | — | 100.99 | 93.54 | 99.51 | 94.35 | 77.01 | 81.18 | 70.80 | 80.21 | 68.22 | 64.75 |
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 | 2.3% | 3.1% | 1.8% | 1.0% | 0.7% | 0.4% | 1.4% | 0.5% | — | — | — |
| FCF Yield | 3.1% | 4.0% | 2.0% | 1.0% | 0.6% | 0.1% | 0.8% | 0.7% | 0.5% | 0.5% | 0.0% |
| Buyback Yield | 1.4% | 1.9% | 2.3% | 1.3% | 1.2% | 0.0% | 0.0% | 0.0% | 0.9% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.4% | 1.9% | 2.3% | 1.3% | 1.2% | 0.0% | 0.0% | 0.0% | 0.9% | 0.0% | 0.0% |
| Shares Outstanding | — | $406M | $413M | $426M | $428M | $429M | $390M | $369M | $353M | $345M | $334M |
Includes 30+ ratios · 23 years · Updated daily
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Quick answers to the most common questions about buying DXCM stock.
DexCom, Inc.'s current P/E ratio is 42.8x. The historical average is 79.3x. This places it at the 20th percentile of its historical range.
DexCom, Inc.'s current EV/EBITDA is 30.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 56.6x.
DexCom, Inc.'s return on equity (ROE) is 34.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -32.9%.
Based on historical data, DexCom, Inc. is trading at a P/E of 42.8x. This is at the 20th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
DexCom, Inc. has 60.0% gross margin and 19.6% operating margin. Operating margin between 10-20% is typical for established companies.
DexCom, Inc.'s Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Abbott price competition
Metrics are mathematically derived from official filings.
Margin Expansion on Operating Leverage
Operating margin expanded from 11.0% in 2024Q1 to 24.3% in 2026Q2, while gross margin recovered to 63.4%, reflecting scale benefits and improved G7 yields, as reported in quarterly financials.
The sequential improvement in gross margin from 56.9% in 2025Q1 to 63.4% in 2026Q2 suggests that manufacturing efficiencies and the G7 ramp are offsetting the dilutive effect of the pharmacy channel mix shift. Operating leverage is evident as revenue growth outpaces fixed cost absorption, driving operating margin to a record high. However, the sustainability of this margin trajectory is contingent on Abbott's pricing actions and the pace of pharmacy channel adoption, which may pressure realized pricing.
ROIC Recovery from Cyclical Low
ROIC climbed from 1.9% in 2024Q1 to 7.8% in 2026Q2, while ROE improved to 8.9%, indicating a recovery in capital efficiency, based on reported quarterly figures.
The sharp rebound in ROIC from a cyclical low of 1.9% to 7.8% over ten quarters suggests that the company is emerging from a period of heavy investment in G7 manufacturing capacity and new product launches. The improvement is driven primarily by margin expansion rather than asset turnover, which remains low at 0.20x, reflecting the capital-intensive nature of sensor manufacturing. While returns are still below the cost of capital, the trend suggests that the company is on a path to value creation, though investors should monitor whether this trajectory continues as the pharmacy channel scales.
Working Capital Drag from Inventory Build
Cash conversion cycle lengthened to 140 days in 2026Q2 from 120 days a year earlier, driven by higher inventory days, as reported in the quarterly working capital data.
The increase in DIO from 108 days in 2025Q2 to 135 days in 2026Q2 indicates that Dexcom is building inventory ahead of anticipated demand, possibly for the G7 ramp and channel expansion. This inventory build is consuming cash, as evidenced by the volatile FCF margins that swung from 37.7% in 2026Q1 to 14.1% in 2026Q2. While DSO has improved from 100 to 83 days, the overall CCC remains elevated, suggesting that working capital management will be a key swing factor in near-term cash generation.
Deleveraging Improves Financial Flexibility
Debt-to-equity fell from 1.23 in 2024Q4 to 0.53 in 2026Q2, while interest coverage rose to 106.8x, indicating a significantly strengthened balance sheet, per recent SEC filings.
The halving of total debt from $2.6B to $1.4B over the past year has dramatically improved leverage metrics, with D/EBITDA dropping from 10.49x to 3.62x. Interest coverage of 106.8x suggests that debt service is highly comfortable, providing ample headroom for operational fluctuations. This deleveraging appears to be a deliberate strategy to enhance financial flexibility, possibly to fund future buybacks or strategic initiatives, though the company's reliance on a single product category remains a concentration risk.
Liquidity Cushion Amidst Inventory Needs
Current ratio improved to 1.73 in 2026Q2 from 1.47 a year earlier, with cash at $1.1B, providing a solid buffer, as reported in the latest balance sheet.
The current ratio of 1.73 and quick ratio of 1.43 indicate that Dexcom can cover short-term obligations without relying on inventory liquidation, which is prudent given the high DIO. The $1.1B cash position, combined with robust operating cash flow, suggests that the company is well-positioned to fund its growth initiatives and weather potential competitive pressures. However, the inventory build may strain liquidity if demand softens, though the chronic nature of diabetes provides a stable demand base.
Misapplied Metric: P/E on GAAP Earnings
The P/E ratio of 39.55 may mislead investors because it fails to adjust for stock-based compensation and one-time tax benefits, which distort reported earnings, as noted in the financial statements.
The most commonly misapplied ratio for Dexcom is the trailing P/E, which is based on GAAP net income that includes significant stock-based compensation (averaging $40M per quarter) and occasional tax benefits. This overstates earnings power, making the stock appear cheaper than its cash-generative capacity suggests. A more appropriate metric is EV/EBITDA or P/FCF, which better captures the underlying economics; the forward EV/EBITDA of 14.70x appears more reasonable relative to growth, but investors should adjust for SBC to assess true cash earnings.