Latest Ratios: P/E Ratio 36.6x · EV/EBITDA 25.5x · ROE 10.2%. (2013–2026 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 | $7.5B | $7.5B | $9.8B | $6.6B | $5.1B | $4.4B | $6.3B | $4.5B | $4.0B | $3.1B | $2.8B |
| Enterprise Value | $8.2B | $8.2B | $10.6B | $7.1B | $5.9B | $5.2B | $7.1B | $5.6B | $3.6B | $2.9B | $2.6B |
| P/E Ratio → | 36.60 | 34.83 | 101.30 | 118.09 | — | — | 696.25 | 113.90 | 53.28 | 65.74 | 105.11 |
| P/S Ratio | 5.73 | 5.71 | 8.18 | 6.57 | 5.96 | 5.87 | 8.62 | 8.50 | 13.75 | 13.64 | 15.53 |
| P/B Ratio | 3.74 | 3.56 | 4.64 | 3.23 | 2.71 | 2.40 | 4.59 | 4.39 | 8.28 | 9.04 | 10.58 |
| P/FCF | 16.54 | 16.47 | 29.04 | 33.40 | 163.00 | 1135.06 | 74.69 | 70.90 | 40.16 | 64.80 | 84.16 |
| P/OCF | 16.47 | 16.39 | 28.86 | 27.07 | 34.11 | 31.51 | 34.81 | 42.72 | 34.83 | 38.32 | 60.76 |
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 | — | 6.23 | 8.85 | 7.10 | 6.82 | 6.91 | 9.64 | 10.59 | 12.49 | 12.77 | 14.75 |
| EV / EBITDA | 25.46 | 25.36 | 27.06 | 25.25 | 29.56 | 29.40 | 36.08 | 34.24 | 37.44 | 41.66 | 48.35 |
| EV / EBIT | 25.46 | 25.36 | 60.66 | 54.91 | 569.18 | — | 181.16 | 82.90 | 47.17 | 55.88 | 65.56 |
| EV / FCF | — | 17.97 | 31.44 | 36.09 | 186.48 | 1335.06 | 83.51 | 88.29 | 36.48 | 60.67 | 79.90 |
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 | 69.5% | 69.5% | 57.7% | 53.0% | 45.9% | 45.1% | 46.2% | 54.7% | 61.0% | 56.7% | 57.2% |
| Operating Margin | 24.6% | 24.6% | 19.2% | 12.8% | 4.4% | 5.4% | 10.9% | 20.5% | 27.0% | 23.7% | 23.1% |
| Net Profit Margin | 16.4% | 16.4% | 8.1% | 5.6% | -3.0% | -5.9% | 1.2% | 7.5% | 25.7% | 20.6% | 14.8% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.2% | 10.2% | 4.7% | 2.8% | -1.4% | -2.7% | 0.7% | 5.3% | 18.0% | 15.6% | 11.3% |
| ROA | 6.3% | 6.3% | 2.9% | 1.8% | -0.8% | -1.5% | 0.3% | 2.6% | 16.8% | 14.6% | 10.6% |
| ROIC | 8.5% | 8.5% | 6.3% | 3.7% | 1.1% | 1.3% | 2.8% | 7.3% | 44.4% | 30.4% | 25.6% |
| ROCE | 9.8% | 9.8% | 7.3% | 4.3% | 1.3% | 1.5% | 3.3% | 7.5% | 18.7% | 17.8% | 17.5% |
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 | 0.48 | 0.48 | 0.52 | 0.46 | 0.52 | 0.54 | 0.78 | 1.26 | — | — | — |
| Debt / EBITDA | 3.11 | 3.11 | 2.82 | 3.32 | 5.00 | 5.67 | 5.49 | 7.91 | — | — | — |
| Net Debt / Equity | — | 0.32 | 0.38 | 0.26 | 0.39 | 0.42 | 0.54 | 1.08 | -0.76 | -0.58 | -0.53 |
| Net Debt / EBITDA | 2.12 | 2.12 | 2.07 | 1.88 | 3.72 | 4.40 | 3.81 | 6.75 | -3.77 | -2.83 | -2.57 |
| Debt / FCF | — | 1.50 | 2.41 | 2.69 | 23.48 | 200.00 | 8.81 | 17.39 | -3.67 | -4.13 | -4.25 |
| Interest Coverage | 5.64 | 5.64 | 2.89 | 2.33 | 0.21 | -0.94 | 1.12 | 2.74 | — | 191.47 | — |
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 | 3.27 | 3.27 | 3.06 | 4.76 | 2.92 | 2.29 | 2.25 | 1.96 | 13.58 | 12.95 | 12.79 |
| Quick Ratio | 3.27 | 3.27 | 3.06 | 4.76 | 2.92 | 2.29 | 2.25 | 1.96 | 13.58 | 12.94 | 12.75 |
| Cash Ratio | 2.03 | 2.03 | 1.89 | 3.45 | 1.94 | 1.47 | 1.61 | 1.26 | 12.44 | 11.73 | 11.49 |
| Asset Turnover | — | 0.38 | 0.35 | 0.32 | 0.28 | 0.24 | 0.27 | 0.21 | 0.56 | 0.62 | 0.64 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | 462.66 | 128.91 |
| Days Sales Outstanding | — | 34.37 | 35.90 | 38.30 | 41.02 | 42.18 | 36.21 | 48.62 | 32.62 | 34.35 | 34.79 |
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 | 2.7% | 2.9% | 1.0% | 0.8% | — | — | 0.1% | 0.9% | 1.9% | 1.5% | 1.0% |
| FCF Yield | 6.0% | 6.1% | 3.4% | 3.0% | 0.6% | 0.1% | 1.3% | 1.4% | 2.5% | 1.5% | 1.2% |
| Buyback Yield | 4.0% | 4.0% | 1.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 4.0% | 4.0% | 1.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $87M | $89M | $87M | $84M | $83M | $76M | $68M | $63M | $62M | $60M |
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying HQY stock.
HealthEquity, Inc.'s current P/E ratio is 36.6x. The historical average is 85.3x. This places it at the 11th percentile of its historical range.
HealthEquity, Inc.'s current EV/EBITDA is 25.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 35.1x.
HealthEquity, Inc.'s return on equity (ROE) is 10.2%. The historical average is 8.6%.
Based on historical data, HealthEquity, Inc. is trading at a P/E of 36.6x. This is at the 11th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
HealthEquity, Inc. has 69.5% gross margin and 24.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
HealthEquity, Inc.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Interest rate sensitivity on custodial revenue
Metrics are mathematically derived from official filings.
Premium Valuation Reflects Growth & Margin Inflection
HealthEquity trades at a forward P/E of 24.29 and a PEG of 0.47, suggesting the market is pricing in significant earnings growth relative to its current valuation, a premium justified by its accelerating profitability and unique asset-based revenue model.
The forward P/E of 24.29 represents a substantial discount to the trailing P/E of 39.05, indicating analysts expect a sharp earnings expansion. This is supported by the PEG ratio of 0.47, which is well below 1.0 and typically signals an undervalued growth stock. However, the EV/EBITDA multiple of 27.02 is elevated compared to peers like WEX (10.49), suggesting the market is assigning a premium for HealthEquity's high-margin, recurring revenue streams and the strategic value of its custodial float, which pure-play benefits administrators cannot access.
Structural Margin Expansion Drives Earning Power
Gross margin has expanded dramatically from 56.2% in 2025Q1 to 73.5% in 2027Q2, indicating the high fixed-cost technology platform is now scaling efficiently with incremental member additions, driving significant operating leverage.
The gross margin expansion of over 1,700 basis points in two years is the most critical profitability trend, reflecting the scalable nature of the platform where adding new members incurs minimal marginal cost. This structural shift is now flowing to the bottom line, with operating margin improving from 15.2% to 28.1% over the same period. The net margin of 18.7% in the latest quarter appears to be the best reflection of true earning power, as it incorporates the full benefit of this operating leverage while accounting for the elevated stock-based compensation that dilutes reported earnings.
Compounding Returns on Invested Capital
ROIC has improved from 1.2% in 2025Q1 to 2.7% in 2027Q2, suggesting the company is beginning to compound returns on its invested capital base, driven primarily by margin expansion rather than asset turnover.
The upward trajectory in ROIC, while still modest in absolute terms, is a positive signal that the company's acquisition-driven growth is translating into improved capital efficiency. The improvement appears to be driven almost entirely by the expansion in net operating profit margins, as asset turnover has remained relatively flat at 0.11. This suggests the primary driver of future ROIC improvement will be continued margin expansion from operating leverage, rather than a significant increase in the efficiency of the asset base, which remains dominated by goodwill from past acquisitions.
Moderate Leverage with Comfortable Coverage
The company maintains a moderate D/E ratio of 0.49 with a strong interest coverage ratio of 7.97x, indicating debt service is comfortable and the balance sheet is strategically managed to fund growth without excessive risk.
The D/E ratio has remained stable around 0.49 over the last ten quarters, even as the company has pursued acquisitions and share repurchases, suggesting disciplined capital management. The interest coverage ratio of 7.97x in 2027Q2 is a significant improvement from 3.82x in 2025Q1, driven by the expansion in operating income. This trend indicates that debt service is becoming more comfortable as profitability improves, reducing refinancing risk and providing financial flexibility for future strategic moves.
Robust Liquidity Buffer Supports Operations
A current ratio of 2.99 and a quick ratio of 2.99 in 2027Q2 indicate a strong liquidity position, suggesting the company can comfortably meet short-term obligations and absorb operational shocks without distress.
The current and quick ratios are identical, which is notable and suggests the company carries minimal inventory, consistent with its service-based model. This strong liquidity position, combined with a cash balance of $256.0M, provides a substantial buffer. The ratio has improved from 4.39 in 2025Q1, indicating that while the company is deploying capital for growth and buybacks, it is maintaining a prudent liquidity profile that should hold up well under moderate stress scenarios.
The Misapplied 'Rate Play' Valuation
The single most commonly misapplied ratio is the P/E, which obscures the company's hybrid nature as both a service provider and a financial custodian, leading investors to undervalue the structural growth in investment assets under administration.
Many investors view HealthEquity primarily as a 'rate play,' valuing it on the interest rate spread earned on custodial cash. This focus on the P/E multiple can obscure the more durable, non-rate-sensitive growth driver: the long tail of investment AUA. As HSA balances grow, more members invest in mutual funds, shifting the revenue mix toward stable, asset-based fees. A more appropriate metric for valuation would be a blended multiple that weights the service revenue (valued like a SaaS company) and the custodial assets (valued like a bank's deposit franchise), or a focus on the growth rate of investment AUA as a leading indicator of future earnings power.