Latest Ratios: P/E Ratio 30.7x · EV/EBITDA 25.3x · ROE 21.3%. (2006–2026 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 | $14.4B | $19.0B | $10.7B | $9.0B | $4.8B | $3.1B | $3.6B | $2.2B | $1.9B | $1.4B | $1.6B |
| Enterprise Value | $14.0B | $18.7B | $10.4B | $8.5B | $4.6B | $2.9B | $3.3B | $2.1B | $1.7B | $1.3B | $1.6B |
| P/E Ratio → | 30.72 | 40.21 | 32.24 | 30.22 | 19.30 | 15.52 | 24.12 | 19.72 | 15.38 | 16.69 | 16.60 |
| P/S Ratio | 3.09 | 4.10 | 3.14 | 3.10 | 1.81 | 1.38 | 1.90 | 1.36 | 1.17 | 1.02 | 1.14 |
| P/B Ratio | 5.92 | 7.75 | 5.41 | 5.13 | 3.26 | 2.48 | 3.22 | 2.29 | 2.15 | 1.89 | 2.37 |
| P/FCF | 3401.78 | 4506.08 | 51.91 | 24.48 | 31.69 | 92.43 | 48.24 | 20.86 | 14.47 | 13.67 | 1786.25 |
| P/OCF | 55.94 | 74.11 | 32.65 | 21.66 | 22.44 | 25.04 | 29.30 | 14.84 | 12.61 | 10.16 | 22.76 |
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 | — | 4.03 | 3.05 | 2.97 | 1.73 | 1.30 | 1.77 | 1.26 | 1.10 | 0.95 | 1.09 |
| EV / EBITDA | 25.25 | 33.65 | 27.59 | 26.17 | 15.46 | 12.11 | 17.76 | 13.96 | 11.39 | 10.66 | 11.98 |
| EV / EBIT | 30.29 | 33.65 | 29.35 | 27.45 | 17.47 | 14.20 | 21.91 | 16.92 | 13.21 | 14.30 | 14.49 |
| EV / FCF | — | 4424.91 | 50.47 | 23.38 | 30.25 | 87.48 | 44.78 | 19.31 | 13.53 | 12.76 | 1718.38 |
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 | 12.0% | 12.0% | 12.1% | 12.4% | 12.7% | 12.3% | 11.8% | 11.3% | 11.3% | 11.2% | 12.1% |
| Operating Margin | 10.0% | 10.0% | 9.5% | 9.6% | 9.5% | 9.0% | 8.0% | 7.2% | 7.7% | 6.8% | 7.5% |
| Net Profit Margin | 10.2% | 10.2% | 9.7% | 10.3% | 9.4% | 8.9% | 7.9% | 6.9% | 7.6% | 6.1% | 6.8% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 21.3% | 21.3% | 17.8% | 18.4% | 18.2% | 16.9% | 14.2% | 12.4% | 15.1% | 11.8% | 15.7% |
| ROA | 14.0% | 14.0% | 12.9% | 13.7% | 13.0% | 11.6% | 9.9% | 8.6% | 10.3% | 7.9% | 10.3% |
| ROIC | 18.3% | 18.3% | 16.1% | 16.0% | 16.2% | 15.8% | 13.6% | 11.3% | 13.2% | 11.1% | 14.5% |
| ROCE | 20.4% | 20.4% | 17.1% | 16.9% | 18.0% | 16.6% | 13.6% | 11.8% | 13.9% | 12.2% | 16.0% |
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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.01 | 0.02 | 0.04 | 0.06 | 0.07 | 0.09 | 0.11 |
| Debt / EBITDA | 0.01 | 0.01 | 0.02 | 0.03 | 0.05 | 0.13 | 0.25 | 0.40 | 0.40 | 0.53 | 0.56 |
| Net Debt / Equity | — | -0.14 | -0.15 | -0.23 | -0.15 | -0.13 | -0.23 | -0.17 | -0.14 | -0.13 | -0.09 |
| Net Debt / EBITDA | -0.62 | -0.62 | -0.79 | -1.23 | -0.74 | -0.69 | -1.37 | -1.12 | -0.79 | -0.76 | -0.47 |
| Debt / FCF | — | -81.17 | -1.44 | -1.10 | -1.44 | -4.96 | -3.46 | -1.55 | -0.93 | -0.91 | -67.87 |
| Interest Coverage | 6609.49 | 6609.49 | — | 2511.92 | 177.70 | 480.09 | 137.80 | 40.17 | 24.46 | 25.41 | 32.27 |
Net cash position: cash ($347M) exceeds total debt ($4M)
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 | 2.25 | 2.25 | 3.00 | 3.61 | 3.43 | 2.83 | 3.04 | 3.40 | 3.27 | 3.16 | 2.57 |
| Quick Ratio | 1.52 | 1.52 | 2.28 | 2.78 | 2.35 | 1.80 | 2.09 | 2.47 | 2.33 | 2.21 | 1.80 |
| Cash Ratio | 0.62 | 0.62 | 1.15 | 1.54 | 1.14 | 0.89 | 1.23 | 1.46 | 1.40 | 1.23 | 0.92 |
| Asset Turnover | — | 1.19 | 1.21 | 1.23 | 1.34 | 1.23 | 1.16 | 1.19 | 1.26 | 1.26 | 1.38 |
| Inventory Turnover | 4.00 | 4.00 | 5.17 | 5.46 | 4.44 | 3.56 | 3.93 | 4.70 | 4.79 | 4.73 | 5.23 |
| Days Sales Outstanding | — | 80.06 | 81.01 | 75.01 | 73.38 | 73.04 | 67.67 | 68.97 | 62.91 | 65.69 | 67.93 |
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 | 3.3% | 2.5% | 3.1% | 3.3% | 5.2% | 6.4% | 4.1% | 5.1% | 6.5% | 6.0% | 6.0% |
| FCF Yield | 0.0% | 0.0% | 1.9% | 4.1% | 3.2% | 1.1% | 2.1% | 4.8% | 6.9% | 7.3% | 0.1% |
| Buyback Yield | 0.0% | 0.0% | 1.2% | 0.4% | 1.0% | 1.9% | 0.5% | 0.9% | 0.3% | 3.0% | 0.1% |
| Total Shareholder Yield | 0.0% | 0.0% | 1.2% | 0.4% | 1.0% | 1.9% | 0.5% | 0.9% | 0.3% | 3.0% | 0.1% |
| Shares Outstanding | — | $36M | $36M | $37M | $37M | $37M | $38M | $38M | $37M | $38M | $38M |
Includes 30+ ratios · 21 years · Updated daily
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Quick answers to the most common questions about buying FN stock.
Fabrinet's current P/E ratio is 30.7x. The historical average is 19.0x. This places it at the 88th percentile of its historical range.
Fabrinet's current EV/EBITDA is 25.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.3x.
Fabrinet's return on equity (ROE) is 21.3%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 17.9%.
Based on historical data, Fabrinet is trading at a P/E of 30.7x. This is at the 88th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Fabrinet has 12.0% gross margin and 10.0% operating margin.
Fabrinet's Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Extreme customer concentration risk
Metrics are mathematically derived from official filings.
Premium Valuation Reflects AI-Driven Growth
Fabrinet trades at a forward P/E of 28.57 and EV/EBITDA of 22.59, a significant premium to the broader EMS peer group, which appears to price in the exceptional 44.6% year-over-year revenue growth driven by the AI data center cycle.
The valuation premium is justified by the company's unique positioning in the high-complexity optical transceiver market, a segment where peers like Jabil and Sanmina have limited direct exposure. However, the PEG ratio of 1.12 suggests the market is pricing in sustained high growth, making the stock vulnerable to multiple compression if the AI capex cycle decelerates. The valuation gap versus peers like Celestica (EV/EBITDA 25.44) is narrower, reflecting their similar pivot to data center infrastructure.
Stable Margins Mask Structural Ceiling
Gross margins have remained tightly bound between 11.6% and 12.4% over ten quarters, indicating a structural ceiling imposed by the pass-through nature of component sourcing, as reported in the company's financial statements.
The stability in gross margin, despite a 44.6% revenue surge, confirms the business model's fee-based economics where Fabrinet earns on assembly complexity rather than material value. Operating margins near 10.5% demonstrate efficient overhead absorption, but the persistent gap where net margin exceeds operating margin highlights the material, non-operational boost from Thai tax incentives and interest income. This suggests core manufacturing profitability is lower than headline net income implies, warranting adjustment for a true earnings power assessment.
Returns Lag Asset Growth Cycle
Despite accelerating revenue, ROIC has only modestly improved from 4.2% to 5.1% over ten quarters, indicating that the massive capital investment in new facilities is diluting returns in the near term.
The ROIC trend reveals a classic growth-phase dynamic: the tripling of PPE and doubling of the asset base are generating future capacity, but current returns are suppressed by the investment cycle. The ROE of 6.0% is significantly lower than peers like Celestica (50.7%) and Jabil (62.2%), reflecting Fabrinet's conservative, debt-free capital structure and lower financial leverage. The key question is whether the new capacity will drive sufficient incremental operating income to meaningfully expand returns on invested capital over the next 2-3 years.
Working Capital Swells to Fund Growth
The cash conversion cycle has compressed from 77 days to 68 days, driven by a 15-day reduction in days inventory outstanding, suggesting improved inventory management despite the rapid revenue ramp.
The improvement in CCC is a positive signal, indicating that Fabrinet is not building excess inventory to chase growth. However, the absolute level of working capital is consuming significant cash, as evidenced by the negative free cash flow margin. Days sales outstanding (67 days) and days payable outstanding (74 days) are relatively stable, suggesting the company maintains consistent terms with customers and suppliers. The efficiency metrics are healthy but are being overshadowed by the sheer scale of the investment cycle.
Debt-Free Fortress Limits Financial Risk
Fabrinet maintains a 0.00 debt-to-equity ratio and an interest coverage ratio exceeding 2,300x, providing a complete buffer against rising interest rates and refinancing risk.
The fortress balance sheet is a key differentiator, insulating the company from the financial pressures facing more leveraged peers like Jabil (D/E 2.22). This conservative structure provides significant flexibility to fund the current capacity expansion internally and weather potential cyclical downturns in the optical sector. The lack of debt also means that all financial risk is concentrated in operational execution and customer concentration, rather than capital structure.
The Misapplied Efficiency Metric
Asset turnover, at 0.35, is the ratio most commonly misapplied to Fabrinet, as it penalizes the company for its current, necessary investment cycle in high-spec cleanroom capacity.
Analysts often compare Fabrinet's low asset turnover to more asset-light peers, but this comparison is misleading. The company's business model requires massive, upfront capital investment in specialized facilities and equipment to secure long-term, sticky customer relationships. The current low turnover is a function of timing—assets are being deployed ahead of the revenue they will generate. A more appropriate metric would be revenue growth per dollar of incremental capital expenditure, which would better capture the efficiency of the current investment cycle.