Latest Ratios: P/E Ratio 34.8x · EV/EBITDA 26.0x · ROE 20.6%. (1998–2025 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 | $23.2B | $19.0B | $13.1B | $9.7B | $8.8B | $12.3B | $7.5B | $8.5B | $12.4B | $7.8B | $8.5B |
| Enterprise Value | $22.4B | $18.1B | $12.5B | $9.4B | $9.0B | $12.8B | $7.8B | $7.9B | $11.9B | $7.1B | $8.0B |
| P/E Ratio → | 34.79 | 27.39 | 23.06 | 24.60 | 27.46 | 37.22 | 24.50 | 19.83 | 27.24 | 18.55 | 23.17 |
| P/S Ratio | 7.51 | 6.14 | 4.64 | 3.45 | 3.28 | 4.74 | 3.21 | 3.79 | 5.72 | 3.74 | 4.25 |
| P/B Ratio | 6.71 | 5.28 | 4.18 | 3.47 | 3.58 | 5.23 | 3.38 | 4.82 | 9.62 | 6.35 | 7.15 |
| P/FCF | 25.60 | 20.92 | 17.15 | 16.21 | 21.62 | 20.07 | 12.54 | 13.18 | 17.48 | 11.19 | 13.17 |
| P/OCF | 24.43 | 19.97 | 16.49 | 14.86 | 19.98 | 19.12 | 11.40 | 11.35 | 16.25 | 10.55 | 11.91 |
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 | 4.43 | 3.35 | 3.35 | 4.90 | 3.32 | 3.52 | 5.53 | 3.41 | 3.99 |
| EV / EBITDA | 26.04 | 21.10 | 16.28 | 16.12 | 17.37 | 25.06 | 15.97 | 13.44 | 17.86 | 11.42 | 13.17 |
| EV / EBIT | 29.18 | 22.89 | 18.68 | 17.54 | 21.91 | 32.40 | 19.49 | 15.22 | 19.60 | 12.37 | 14.30 |
| EV / FCF | — | 19.98 | 16.35 | 15.75 | 22.06 | 20.77 | 12.98 | 12.25 | 16.88 | 10.23 | 12.37 |
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 | 81.4% | 81.4% | 80.2% | 78.9% | 80.0% | 81.1% | 82.6% | 84.1% | 83.3% | 83.1% | 83.1% |
| Operating Margin | 24.8% | 24.8% | 23.4% | 16.8% | 15.0% | 15.1% | 16.7% | 23.1% | 28.2% | 27.0% | 27.4% |
| Net Profit Margin | 22.4% | 22.4% | 20.1% | 14.0% | 12.0% | 12.7% | 13.1% | 19.1% | 21.0% | 20.1% | 18.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.6% | 20.6% | 19.1% | 15.0% | 13.3% | 14.4% | 15.4% | 28.1% | 36.1% | 34.9% | 29.2% |
| ROA | 11.6% | 11.6% | 10.4% | 7.5% | 6.3% | 6.8% | 7.6% | 14.3% | 17.9% | 17.6% | 15.8% |
| ROIC | 21.8% | 21.8% | 19.6% | 13.7% | 11.1% | 11.2% | 16.1% | 38.4% | 64.5% | 69.0% | 51.4% |
| ROCE | 17.3% | 17.3% | 16.7% | 13.1% | 11.5% | 11.3% | 13.8% | 26.3% | 38.2% | 37.5% | 36.3% |
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 | 0.14 | 0.14 | 0.15 | 0.19 | 0.38 | 0.43 | 0.50 | — | — | — | — |
| Debt / EBITDA | 0.57 | 0.57 | 0.61 | 0.89 | 1.80 | 1.99 | 2.28 | — | — | — | — |
| Net Debt / Equity | — | -0.24 | -0.19 | -0.10 | 0.07 | 0.18 | 0.12 | -0.34 | -0.33 | -0.55 | -0.43 |
| Net Debt / EBITDA | -0.99 | -0.99 | -0.80 | -0.47 | 0.34 | 0.85 | 0.54 | -1.02 | -0.64 | -1.08 | -0.85 |
| Debt / FCF | — | -0.94 | -0.80 | -0.46 | 0.44 | 0.70 | 0.44 | -0.93 | -0.60 | -0.97 | -0.80 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($1.3B) exceeds total debt ($493M)
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 | 1.54 | 1.54 | 1.39 | 1.23 | 1.02 | 1.13 | 1.37 | 1.37 | 1.49 | 1.50 | 1.53 |
| Quick Ratio | 1.49 | 1.49 | 1.34 | 1.19 | 0.95 | 1.12 | 1.35 | 1.34 | 1.45 | 1.47 | 1.49 |
| Cash Ratio | 0.83 | 0.83 | 0.72 | 0.55 | 0.48 | 0.65 | 0.94 | 0.88 | 1.09 | 1.09 | 1.05 |
| Asset Turnover | — | 0.49 | 0.50 | 0.54 | 0.51 | 0.52 | 0.50 | 0.66 | 0.83 | 0.84 | 0.87 |
| Inventory Turnover | 7.43 | 7.43 | 7.30 | 8.23 | 4.30 | 22.36 | 14.62 | 10.37 | 11.83 | 11.85 | 9.90 |
| Days Sales Outstanding | — | 107.88 | 102.41 | 107.55 | 106.92 | 77.94 | 67.43 | 65.34 | 49.88 | 50.98 | 49.06 |
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 | 2.9% | 3.7% | 4.3% | 4.1% | 3.6% | 2.7% | 4.1% | 5.0% | 3.7% | 5.4% | 4.3% |
| FCF Yield | 3.9% | 4.8% | 5.8% | 6.2% | 4.6% | 5.0% | 8.0% | 7.6% | 5.7% | 8.9% | 7.6% |
| Buyback Yield | 2.2% | 2.6% | 3.8% | 3.6% | 5.7% | 4.1% | 1.3% | 2.4% | 4.9% | 7.7% | 8.3% |
| Total Shareholder Yield | 2.2% | 2.6% | 3.8% | 3.6% | 5.7% | 4.1% | 1.3% | 2.4% | 4.9% | 7.7% | 8.3% |
| Shares Outstanding | — | $59M | $59M | $60M | $61M | $62M | $61M | $60M | $62M | $65M | $68M |
Legacy hardware revenue cannibalization
Based on current market data, F5 trades at a forward P/E of 23.93, which appears to discount the company as a legacy infrastructure provider rather than a high-growth security SaaS entity, especially when compared to the significantly higher multiples commanded by pure-play cloud security peers like Arista Networks.
The current PEG ratio of 1.79 suggests that investors are pricing in moderate growth expectations, likely reflecting the friction of the ongoing transition from hardware to subscription models. This valuation warrants further investigation, as it may undervalue the long-term potential of the Distributed Cloud platform if the market continues to conflate F5 with slower-growing legacy networking hardware firms.
According to recent financial statements, F5's ROIC has fluctuated between 4.1% and 6.0% over the last ten quarters, a trend that suggests the company is struggling to compound returns on invested capital as it integrates large, premium-priced acquisitions into its existing operational framework.
The modest ROIC levels appear to be a direct consequence of the significant goodwill and intangible assets accumulated through aggressive M&A activity. Investors should monitor whether management can improve these returns by successfully cross-selling new security modules into the legacy BIG-IP installed base, thereby driving higher margin software revenue.
As reported in quarterly filings, F5's cash conversion cycle has remained elevated, peaking at 120 days in 2025Q2, which indicates that the company's transition to a subscription-based model is creating temporary inefficiencies in working capital management compared to its historical hardware-centric operational baseline.
The variability in DSO, which reached 114 days in 2024Q1, suggests that the company may be offering extended payment terms to facilitate the adoption of its newer software offerings. This trend warrants further investigation, as it may indicate that the company is using its strong balance sheet to incentivize customer migration during the transition period.
Based on the provided balance sheet data, F5 maintains a robust financial position with a debt-to-equity ratio of 0.06 as of 2026Q2, a figure that highlights the company's minimal reliance on external financing and its ability to navigate macroeconomic uncertainty without significant interest coverage risk.
This low leverage profile provides management with substantial optionality to continue aggressive share repurchases and strategic R&D investment. The company appears well-insulated from rising interest rates, which distinguishes it from more highly levered peers in the broader technology infrastructure sector.
The P/E ratio is frequently misapplied to F5, as it obscures the underlying economic reality of the company's transition from upfront hardware revenue recognition to ratable subscription-based SaaS revenue, which artificially suppresses GAAP earnings and makes the stock appear more expensive than its cash-generative capacity suggests.
Analysts should instead prioritize P/FCF or EV/Revenue to better capture the true economic activity and cash-generating power of the business. Relying solely on P/E risks misinterpreting the company's valuation by failing to account for the non-cash amortization charges and the timing differences inherent in the shift toward recurring revenue models.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying FFIV stock.
F5, Inc.'s current P/E ratio is 34.8x. The historical average is 36.0x. This places it at the 71th percentile of its historical range.
F5, Inc.'s current EV/EBITDA is 26.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 22.9x.
F5, Inc.'s return on equity (ROE) is 20.6%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 12.3%.
Based on historical data, F5, Inc. is trading at a P/E of 34.8x. This is at the 71th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
F5, Inc. has 81.4% gross margin and 24.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
F5, Inc.'s Debt/EBITDA ratio is 0.6x, indicating low leverage. A ratio below 2x is generally considered financially healthy.