Latest Ratios: P/E Ratio -48.0x · EV/EBITDA 15.8x · ROE -3.7%. (2016–2025 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 | $11.3B | $11.2B | $6.0B | $7.3B | $6.0B | $13.8B | $13.5B | $10.9B | $9.9B | — | — |
| Enterprise Value | $14.7B | $14.7B | $9.9B | $12.8B | $11.5B | $19.5B | $19.2B | $12.9B | $11.9B | — | — |
| P/E Ratio → | -48.04 | — | 17.81 | — | — | — | — | 163.61 | 112.61 | — | — |
| P/S Ratio | 2.39 | 2.38 | 1.36 | 1.66 | 1.35 | 2.90 | 4.14 | 3.55 | 3.23 | — | — |
| P/B Ratio | 1.71 | 1.72 | 0.99 | 1.18 | 0.82 | 1.84 | 1.60 | 1.97 | 1.90 | — | — |
| P/FCF | 39.71 | 39.55 | 15.29 | 62.69 | 22.27 | 48.35 | — | 408.44 | 28.04 | — | — |
| P/OCF | 20.14 | 20.06 | 11.13 | 27.07 | 13.20 | 28.63 | — | 48.66 | 20.30 | — | — |
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 | — | 3.12 | 2.22 | 2.89 | 2.60 | 4.09 | 5.86 | 4.21 | 3.88 | — | — |
| EV / EBITDA | 15.83 | 15.78 | 10.82 | 12.51 | 10.75 | 19.13 | 43.56 | 18.88 | 19.50 | — | — |
| EV / EBIT | 58.53 | — | 11.94 | — | 62.27 | — | — | 82.28 | 82.73 | — | — |
| EV / FCF | — | 51.78 | 25.06 | 109.04 | 42.75 | 68.21 | — | 484.13 | 33.70 | — | — |
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 | 43.5% | 43.5% | 43.0% | 43.9% | 44.7% | 43.6% | 38.1% | 45.6% | 42.2% | 40.6% | 45.8% |
| Operating Margin | 5.3% | 5.3% | 5.7% | 7.4% | 8.7% | 6.4% | -2.3% | 12.0% | 10.2% | 4.9% | 9.7% |
| Net Profit Margin | -4.9% | -4.9% | 7.6% | -27.9% | -1.8% | -10.1% | -17.1% | 2.2% | 2.8% | -10.8% | -1.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -3.7% | -3.7% | 5.5% | -18.2% | -1.1% | -6.0% | -8.0% | 1.3% | 1.3% | -4.2% | -0.7% |
| ROA | -1.8% | -1.8% | 2.5% | -8.2% | -0.5% | -2.8% | -4.2% | 0.8% | 1.0% | -3.6% | -0.6% |
| ROIC | 1.9% | 1.9% | 1.7% | 2.0% | 2.2% | 1.7% | -0.5% | 3.8% | 3.2% | 1.5% | 3.1% |
| ROCE | 2.2% | 2.2% | 2.1% | 2.4% | 2.7% | 2.0% | -0.6% | 4.6% | 3.9% | 1.8% | 3.8% |
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 | 0.61 | 0.61 | 0.71 | 0.93 | 0.80 | 0.84 | 0.72 | 0.42 | 0.48 | — | — |
| Debt / EBITDA | 4.31 | 4.31 | 4.73 | 5.66 | 5.47 | 6.20 | 13.92 | 3.44 | 4.05 | — | — |
| Net Debt / Equity | — | 0.53 | 0.63 | 0.87 | 0.75 | 0.76 | 0.66 | 0.36 | 0.38 | -0.04 | -0.04 |
| Net Debt / EBITDA | 3.73 | 3.73 | 4.22 | 5.32 | 5.15 | 5.57 | 12.80 | 2.95 | 3.28 | -0.70 | -0.48 |
| Debt / FCF | — | 12.23 | 9.78 | 46.34 | 20.49 | 19.86 | — | 75.69 | 5.66 | -4.30 | -5.68 |
| Interest Coverage | -0.02 | -0.02 | 2.44 | -3.31 | 0.72 | -1.16 | -3.31 | 1.99 | 4.85 | — | — |
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 | 2.17 | 2.17 | 2.44 | 2.75 | 1.93 | 1.99 | 1.65 | 2.90 | 2.58 | 3.36 | 3.15 |
| Quick Ratio | 1.08 | 1.08 | 1.25 | 1.35 | 1.02 | 1.16 | 0.89 | 1.62 | 1.55 | 1.68 | 1.73 |
| Cash Ratio | 0.34 | 0.34 | 0.36 | 0.28 | 0.20 | 0.39 | 0.24 | 0.41 | 0.49 | 0.51 | 0.42 |
| Asset Turnover | — | 0.35 | 0.35 | 0.31 | 0.28 | 0.29 | 0.19 | 0.34 | 0.34 | 0.32 | 0.36 |
| Inventory Turnover | 1.53 | 1.53 | 1.61 | 1.43 | 1.59 | 1.96 | 1.28 | 1.59 | 1.76 | 1.61 | 1.80 |
| Days Sales Outstanding | — | 72.77 | 72.85 | 83.46 | 82.91 | 78.76 | 120.09 | 105.77 | 84.43 | 76.04 | 79.01 |
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 | — | — | 5.6% | — | — | — | — | 0.6% | 0.9% | — | — |
| FCF Yield | 2.5% | 2.5% | 6.5% | 1.6% | 4.5% | 2.1% | — | 0.2% | 3.6% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $496M | $497M | $492M | $488M | $487M | $441M | $370M | $314M | $356M | $356M |
Includes 30+ ratios · 10 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 ELAN stock.
Elanco Animal Health Incorporated's current P/E ratio is -48.0x. The historical average is 98.0x.
Elanco Animal Health Incorporated's current EV/EBITDA is 15.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 18.9x.
Elanco Animal Health Incorporated's return on equity (ROE) is -3.7%. The historical average is -3.4%.
Based on historical data, Elanco Animal Health Incorporated is trading at a P/E of -48.0x. Compare with industry peers and growth rates for a complete picture.
Elanco Animal Health Incorporated has 43.5% gross margin and 5.3% operating margin.
Elanco Animal Health Incorporated's Debt/EBITDA ratio is 4.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Elevated debt and competitive pressure
Metrics are mathematically derived from official filings.
Margin Inflection Masks Underlying Mix
Gross margin surged to 58.3% in Q2 2026 from 46.5% a year earlier, per the latest quarterly filing, signaling a favorable product mix shift, yet operating margin remains thin at 8.0%.
The 1,180 basis point gross margin expansion likely reflects the divestiture of lower-margin assets and the scaling of the innovation portfolio, but the operating margin of 8.0% still trails Zoetis's 28.2% net margin, indicating that SG&A and amortization continue to absorb gains. The negative net margin in prior quarters, such as -24.1% in Q4 2025, underscores that GAAP profitability is heavily distorted by non-cash charges, making adjusted EBITDA a more reliable gauge of earning power.
Return on Capital Remains Subdued
ROIC improved to 0.8% in Q2 2026 from 0.1% a year earlier, as reported in financial statements, but remains far below the cost of capital, suggesting value creation is still nascent.
The ten-quarter trend shows ROIC oscillating near zero, with a peak of 2.3% in Q1 2026, reflecting the heavy goodwill and intangibles from the Bayer acquisition that inflate the capital base. Even with the recent margin expansion, the asset turnover of 0.10x is exceptionally low, indicating that the company's invested capital is not yet generating adequate returns. Investors should monitor whether the innovation pipeline can drive revenue growth sufficient to lift ROIC toward the double-digit levels seen at Zoetis (26.9%).
Working Capital Drag Persists
Cash conversion cycle extended to 291 days in Q2 2026 from 255 days a year earlier, per reported figures, driven by inventory days of 278, indicating significant capital tied up in stock.
The DIO of 278 days is exceptionally high, suggesting either deliberate stockpiling for launch products or potential obsolescence risk, while DSO of 77 days and DPO of 64 days are relatively stable. The widening CCC from 255 to 291 days over the past year implies that working capital is consuming cash, which may offset some of the operational improvements. This inefficiency is a key reason why free cash flow conversion remains volatile, as seen in the swing from -$38M in Q1 2026 to $244M in Q2 2026.
Leverage Eases but Coverage Thin
Debt-to-equity improved to 0.59 in Q2 2026 from 0.96 in Q2 2024, per the balance sheet, yet interest coverage of 1.75x remains low, indicating limited cushion for debt service.
The absolute debt reduction from $5.7B to $3.9B is a positive sign, but the D/EBITDA of 13.99x in Q2 2026 is elevated, though it improved from 20.81x in Q4 2025. Interest coverage of 1.75x suggests that operating income barely covers interest expense, leaving little room for adverse shocks. The negative interest coverage in Q4 2025 (-1.85x) highlights the vulnerability to earnings volatility, and while the trend is improving, the balance sheet remains a constraint on capital allocation.
Liquidity Adequate but Tightening
Current ratio fell to 2.05 in Q2 2026 from 2.93 a year earlier, as per the balance sheet, with quick ratio at 1.10, indicating a still-adequate but shrinking liquidity buffer.
The decline in the current ratio is driven by a reduction in current assets relative to liabilities, and the quick ratio of 1.10 suggests that inventory is a significant component of liquidity. Cash of $530M is modest relative to the $3.9B debt load, and the company's ability to weather a severe downturn would depend on continued operating cash flow generation. The negative FCF in Q1 2026 (-$38M) demonstrates that liquidity can tighten quickly, though the Q2 rebound to $244M provides some comfort.
Misapplied EV/EBITDA Multiple
EV/EBITDA of 16.41x appears reasonable versus peers, but it is misleading given the heavy amortization from the Bayer acquisition, which depresses EBITDA and inflates the multiple.
The most commonly misapplied ratio for ELAN is EV/EBITDA, because the company's EBITDA is artificially low due to significant amortization of intangibles from past acquisitions, making the multiple appear higher than the underlying cash generation. A more appropriate metric is EV/EBITDAR or EV/operating cash flow, which better captures the cash-generating ability of the core brands. As reported in financial statements, cumulative operating cash flow of $1.39B over ten quarters far exceeds net income, suggesting that the true earnings power is higher than GAAP EBITDA implies.