Latest Ratios: P/E Ratio 170.1x · EV/EBITDA 133.8x · ROE 23.4%. (1998–2026 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 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.9B | $4.2B | $2.4B | $1.7B | $3.5B | $1.2B | $1.4B | $520M | $763M | $909M | $998M |
| Enterprise Value | $2.9B | $4.2B | $2.4B | $1.8B | $3.5B | $1.4B | $1.6B | $826M | $772M | $986M | $961M |
| P/E Ratio → | 170.08 | 249.00 | — | — | 44.91 | 27.03 | 734.21 | — | — | — | — |
| P/S Ratio | 8.54 | 12.32 | 2.08 | 1.56 | 2.65 | 1.07 | 1.41 | 0.55 | 0.77 | 0.92 | 1.64 |
| P/B Ratio | 32.16 | 47.09 | 36.22 | 68.78 | 29.82 | 13.18 | 26.16 | 96.33 | 6.58 | 8.07 | 9.36 |
| P/FCF | 0.03 | 0.04 | 18.66 | 46.54 | 14.79 | 10.56 | 11.19 | 25.22 | 9.28 | — | 20.43 |
| P/OCF | 0.02 | 0.03 | 15.62 | 31.34 | 13.97 | 9.29 | 9.86 | 14.49 | 7.27 | 47.74 | 16.84 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 12.27 | 2.08 | 1.64 | 2.68 | 1.22 | 1.57 | 0.87 | 0.78 | 1.00 | 1.58 |
| EV / EBITDA | 133.84 | 193.45 | 62.85 | 3237.41 | 24.05 | 12.04 | 17.70 | — | 20.25 | 90.89 | 29.66 |
| EV / EBIT | 136.43 | 193.90 | 117.17 | — | 31.59 | 20.95 | 48.05 | — | — | — | 143.75 |
| EV / FCF | — | 0.04 | 18.59 | 49.04 | 14.96 | 12.07 | 12.46 | 40.06 | 9.39 | — | 19.66 |
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 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 62.2% | 62.2% | 62.2% | 56.5% | 57.5% | 56.6% | 58.0% | 54.6% | 55.4% | 54.4% | 54.5% |
| Operating Margin | 6.2% | 6.2% | 1.6% | -2.6% | 8.5% | 6.6% | 3.4% | -10.4% | -1.5% | -3.9% | 1.0% |
| Net Profit Margin | 5.3% | 5.3% | -0.7% | -7.7% | 5.9% | 4.0% | 0.2% | -13.4% | -2.6% | -4.8% | -0.3% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.4% | 23.4% | -16.4% | -121.0% | 75.4% | 61.1% | 6.5% | -209.0% | -22.6% | -42.6% | -1.8% |
| ROA | 1.5% | 1.5% | -0.7% | -7.9% | 7.1% | 4.3% | 0.2% | -14.6% | -3.4% | -7.5% | -0.4% |
| ROIC | 24.6% | 24.6% | 15.7% | -15.7% | 40.0% | 22.9% | 9.8% | -34.0% | -7.0% | -22.2% | 7.5% |
| ROCE | 3.7% | 3.7% | 3.4% | -5.3% | 19.7% | 13.0% | 6.1% | -20.1% | -3.6% | -12.0% | 3.1% |
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 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 2.20 | 2.20 | 3.41 | 9.89 | 2.36 | 4.04 | 7.52 | 92.58 | 1.54 | 1.75 | 0.87 |
| Debt / EBITDA | 9.06 | 9.06 | 5.93 | 441.96 | 1.88 | 3.23 | 4.57 | — | 4.69 | 18.23 | 2.86 |
| Net Debt / Equity | — | -0.19 | -0.13 | 3.70 | 0.35 | 1.89 | 2.99 | 56.66 | 0.08 | 0.68 | -0.35 |
| Net Debt / EBITDA | -0.80 | -0.80 | -0.22 | 165.11 | 0.28 | 1.51 | 1.81 | — | 0.24 | 7.06 | -1.17 |
| Debt / FCF | — | -0.00 | -0.07 | 2.50 | 0.17 | 1.51 | 1.28 | 14.84 | 0.11 | — | -0.77 |
| Interest Coverage | 6.09 | 6.09 | 1.27 | -3.56 | 6.41 | 5.08 | 1.45 | -4.07 | -1.05 | -2.35 | 1.64 |
Net cash position: cash ($212M) exceeds total debt ($195M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.93 | 0.93 | 0.91 | 0.90 | 1.00 | 0.98 | 1.07 | 1.04 | 1.24 | 1.19 | 1.27 |
| Quick Ratio | 0.81 | 0.81 | 0.74 | 0.63 | 0.85 | 0.88 | 1.00 | 0.88 | 1.06 | 1.01 | 1.09 |
| Cash Ratio | 0.36 | 0.36 | 0.39 | 0.30 | 0.41 | 0.39 | 0.54 | 0.49 | 0.48 | 0.34 | 0.51 |
| Asset Turnover | — | 0.29 | 0.99 | 1.07 | 1.15 | 1.04 | 1.00 | 0.97 | 1.32 | 1.28 | 1.26 |
| Inventory Turnover | 1.83 | 1.83 | 4.20 | 3.45 | 6.26 | 9.80 | 12.90 | 6.87 | 6.99 | 7.02 | 6.02 |
| Days Sales Outstanding | — | 177.45 | 40.57 | 29.25 | 50.63 | 60.41 | 56.58 | 47.25 | 63.93 | 78.86 | 55.98 |
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 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.6% | 0.4% | — | — | 2.2% | 3.7% | 0.1% | — | — | — | — |
| FCF Yield | 100.0% | 2283.1% | 5.4% | 2.1% | 6.8% | 9.5% | 8.9% | 4.0% | 10.8% | — | 4.9% |
| Buyback Yield | 100.0% | 100.0% | 1.6% | 2.9% | 2.9% | 3.8% | 0.0% | 5.8% | 2.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 100.0% | 100.0% | 1.6% | 2.9% | 2.9% | 3.8% | 0.0% | 5.8% | 2.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $129M | $132M | $129M | $134M | $133M | $128M | $120M | $118M | $114M | $108M |
Includes 30+ ratios · 29 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying EXTR stock.
Extreme Networks, Inc.'s current P/E ratio is 170.1x. The historical average is 49.1x. This places it at the 100th percentile of its historical range.
Extreme Networks, Inc.'s current EV/EBITDA is 133.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 29.1x.
Extreme Networks, Inc.'s return on equity (ROE) is 23.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -18.9%.
Based on historical data, Extreme Networks, Inc. is trading at a P/E of 170.1x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Extreme Networks, Inc. has 62.2% gross margin and 6.2% operating margin.
Extreme Networks, Inc.'s Debt/EBITDA ratio is 9.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Elevated leverage and thin equity
Metrics are mathematically derived from official filings.
Margin Recovery Masks Underlying Fragility
Gross margin expanded from 44.7% to 62.2% over eight quarters, yet operating margin remains thin at 6.2%, as reported in financial statements, indicating limited pricing power and high fixed costs.
The gross margin recovery is largely attributable to a favorable mix shift toward software and high-end switching, but the operating margin of 6.2% in 2026Q4 remains far below peers like Arista (42.8%), suggesting that competitive pressures and heavy R&D/SG&A spending constrain profitability. Net margin turned positive at 5.3% in 2026Q4, but this is a recent inflection after several quarters of losses, and the sustainability of this level depends on continued revenue growth and cost discipline. Investors should monitor whether operating leverage can persist as the company scales, given that gross margin has plateaued around 62%.
ROIC Rebound Signals Turnaround
ROIC swung from -30.2% in 2024Q3 to 18.0% in 2026Q4, as per quarterly data, indicating a dramatic recovery in capital efficiency, though the improvement is from a deeply negative base.
The ROIC recovery is driven by both margin expansion and improved asset turnover, with asset turnover rising from 0.19 to 0.29 over the same period. However, the absolute ROIC of 18.0% still lags Arista's 32.8%, reflecting Extreme's lower margins and higher capital intensity. The recent trend suggests the company is compounding returns on invested capital, but the sustainability of this improvement hinges on maintaining revenue growth and avoiding margin erosion from competitive pricing.
Working Capital Efficiency Improves
Cash conversion cycle shortened from 129 days in 2024Q3 to 35 days in 2026Q4, as reported in financial statements, driven by faster inventory turnover and extended payables, signaling improved working capital management.
The dramatic reduction in DIO from 169 to 52 days indicates that the company has successfully digested excess inventory, while DPO increased from 85 to 61 days, allowing it to hold onto cash longer. DSO has remained relatively stable around 44 days, suggesting consistent collection practices. This efficiency gain has contributed to the positive free cash flow margin of 9.2% in 2026Q4, but the quarterly volatility in working capital (e.g., -6.7% FCF margin in 2026Q1) warrants caution, as future swings could impact cash generation.
Leverage Easing but Still Elevated
Debt-to-equity fell from 9.89 in 2024Q4 to 2.20 in 2026Q4, as per SEC filings, yet total debt of $194.6M still exceeds equity by over 2x, indicating persistent balance sheet risk.
Interest coverage improved from -11.5x in 2024Q4 to 6.13x in 2026Q4, reflecting both higher operating income and lower debt levels, but the D/EBITDA ratio of 9.06 remains high, suggesting that debt service could become strained if EBITDA declines. The company's equity base is thin, with retained earnings deeply negative at -$907.3M, meaning the balance sheet is vulnerable to any impairment or unexpected losses. While the recent deleveraging trend is positive, the absolute leverage level remains a key risk, especially if the company needs to fund growth through additional debt.
Liquidity Strained by Current Liabilities
Current ratio of 0.93 in 2026Q4, as reported in financial statements, indicates current liabilities exceed current assets, though cash of $211.8M provides a buffer against near-term obligations.
The quick ratio of 0.81 further highlights the tight liquidity position, as inventory is not easily convertible to cash. However, the company's ability to generate positive operating cash flow (OCF/NI of 4.04x in 2026Q4) and its access to credit facilities may mitigate immediate stress. Under a severe downturn, the thin current ratio could force the company to rely on external financing or delay payments, but the improving cash flow trend suggests some resilience.
Misapplied P/E on Cyclical Earnings
The trailing P/E of 183.85 is misleading given the recent earnings turnaround, as reported in financial statements; forward P/E of 23.15 better reflects normalized earnings, but still embeds high growth expectations.
The most commonly misapplied ratio for Extreme Networks is the trailing P/E, which is distorted by the company's recent swing from losses to profitability. The forward P/E of 23.15 is more meaningful, but it still implies that the market expects sustained double-digit growth and margin expansion. Given the company's history of inconsistent GAAP profitability and the competitive pressures from HPE/Juniper, investors should instead focus on EV/EBITDA (forward 46.49) or EV/Sales to account for the company's capital structure and cash flow generation. Additionally, the P/FCF of 0.03 appears anomalous and likely reflects a data error, underscoring the need to verify cash flow metrics before drawing conclusions.