Latest Ratios: P/E Ratio 31.0x · EV/EBITDA 15.9x · ROE 41.5%. (1996–2025 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 | $7.4B | $11.0B | $5.8B | $3.1B | $1.5B | $2.2B | $1.9B | $1.7B | $2.3B | $2.7B | $3.2B |
| Enterprise Value | $7.1B | $10.7B | $5.7B | $3.2B | $1.4B | $2.0B | $1.8B | $1.4B | $2.2B | $2.6B | $3.1B |
| P/E Ratio → | 31.00 | 26.98 | 16.05 | 14.24 | 16.12 | 40.47 | 42.14 | 82.56 | 36.70 | 15.64 | 10.40 |
| P/S Ratio | 9.02 | 13.16 | 6.63 | 5.55 | 3.29 | 5.26 | 5.25 | 5.43 | 7.63 | 5.11 | 4.83 |
| P/B Ratio | 8.93 | 9.97 | 6.71 | 5.24 | 2.06 | 2.97 | 2.37 | 2.20 | 2.50 | 3.12 | 4.26 |
| P/FCF | 23.88 | 20.77 | 21.66 | 18.04 | 6.20 | 24.64 | 15.57 | 33.67 | 21.34 | 9.77 | 8.30 |
| P/OCF | 13.54 | 20.16 | 21.20 | 14.27 | 5.27 | 17.34 | 11.53 | 19.37 | 15.98 | 8.63 | 7.46 |
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 | — | 12.86 | 6.59 | 5.89 | 3.15 | 4.65 | 5.02 | 4.54 | 7.23 | 4.85 | 4.65 |
| EV / EBITDA | 15.93 | 19.92 | 11.23 | 10.82 | 6.29 | 13.23 | 13.23 | 12.60 | 17.26 | 7.21 | 6.32 |
| EV / EBIT | 15.45 | 21.05 | 12.04 | 11.59 | 9.80 | 23.88 | 25.00 | 21.65 | 32.67 | 8.34 | 6.99 |
| EV / FCF | — | 20.29 | 21.53 | 19.15 | 5.93 | 21.76 | 14.89 | 28.15 | 20.22 | 9.28 | 8.00 |
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 | 80.3% | 80.3% | 80.5% | 85.6% | 84.4% | 84.8% | 52.6% | 51.4% | 59.6% | 80.7% | 84.5% |
| Operating Margin | 55.3% | 55.3% | 50.6% | 40.3% | 32.9% | 16.7% | 15.4% | 11.9% | 20.4% | 56.6% | 65.7% |
| Net Profit Margin | 48.8% | 48.8% | 41.3% | 39.0% | 20.5% | 13.0% | 12.5% | 6.6% | 21.2% | 33.1% | 46.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 41.5% | 41.5% | 49.9% | 32.6% | 12.6% | 7.1% | 5.7% | 2.4% | 7.2% | 21.7% | 48.4% |
| ROA | 20.9% | 20.9% | 19.9% | 11.7% | 5.3% | 3.4% | 2.8% | 1.3% | 3.7% | 9.8% | 19.3% |
| ROIC | 41.4% | 41.4% | 41.5% | 23.2% | 19.5% | 8.9% | 6.8% | 4.3% | 6.1% | 32.9% | 57.6% |
| ROCE | 38.1% | 38.1% | 44.0% | 17.6% | 10.4% | 5.5% | 4.2% | 2.7% | 4.3% | 21.7% | 36.8% |
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 | 0.44 | 0.44 | 0.57 | 1.07 | 0.86 | 0.59 | 0.49 | 0.60 | 0.37 | 0.34 | 0.38 |
| Debt / EBITDA | 0.91 | 0.91 | 0.96 | 2.09 | 2.74 | 2.97 | 2.89 | 4.11 | 2.73 | 0.82 | 0.59 |
| Net Debt / Equity | — | -0.23 | -0.04 | 0.32 | -0.09 | -0.35 | -0.10 | -0.36 | -0.13 | -0.16 | -0.16 |
| Net Debt / EBITDA | -0.47 | -0.47 | -0.07 | 0.63 | -0.29 | -1.75 | -0.60 | -2.47 | -0.96 | -0.38 | -0.24 |
| Debt / FCF | — | -0.47 | -0.14 | 1.11 | -0.27 | -2.88 | -0.68 | -5.51 | -1.12 | -0.49 | -0.30 |
| Interest Coverage | 12.75 | 12.75 | 10.45 | 6.23 | 4.99 | 3.28 | 1.77 | 1.63 | 1.89 | 17.38 | 20.99 |
Net cash position: cash ($739M) exceeds total debt ($488M)
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 | 1.84 | 1.84 | 1.70 | 1.33 | 4.96 | 2.83 | 3.47 | 3.33 | 5.71 | 3.71 | 2.87 |
| Quick Ratio | 1.84 | 1.84 | 1.70 | 1.33 | 4.96 | 2.83 | 3.47 | 3.33 | 5.71 | 3.71 | 2.87 |
| Cash Ratio | 1.65 | 1.65 | 1.32 | 1.14 | 4.43 | 2.53 | 3.14 | 3.06 | 5.27 | 3.08 | 2.24 |
| Asset Turnover | — | 0.40 | 0.47 | 0.31 | 0.24 | 0.26 | 0.22 | 0.20 | 0.19 | 0.29 | 0.39 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 47.90 | 86.15 | 91.07 | 93.52 | 75.71 | 16.28 | 32.36 | 41.60 | 148.14 | 125.24 |
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 | 0.6% | 0.6% | 0.7% | 1.3% | 2.8% | 1.9% | 2.3% | 2.6% | 2.1% | 1.6% | 1.0% |
| Payout Ratio | 14.9% | 14.9% | 11.7% | 18.4% | 45.2% | 77.9% | 96.1% | 213.0% | 74.5% | 24.5% | 10.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.2% | 3.7% | 6.2% | 7.0% | 6.2% | 2.5% | 2.4% | 1.2% | 2.7% | 6.4% | 9.6% |
| FCF Yield | 4.2% | 4.8% | 4.6% | 5.5% | 16.1% | 4.1% | 6.4% | 3.0% | 4.7% | 10.2% | 12.0% |
| Buyback Yield | 1.4% | 0.9% | 1.2% | 11.1% | 4.9% | 1.3% | 0.0% | 11.3% | 4.7% | 0.3% | 2.0% |
| Total Shareholder Yield | 2.0% | 1.5% | 1.9% | 12.4% | 7.7% | 3.3% | 2.3% | 13.9% | 6.8% | 1.9% | 3.0% |
| Shares Outstanding | — | $34M | $30M | $28M | $30M | $31M | $31M | $32M | $35M | $36M | $35M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying IDCC stock.
InterDigital, Inc.'s current P/E ratio is 31.0x. The historical average is 31.0x. This places it at the 63th percentile of its historical range.
InterDigital, Inc.'s current EV/EBITDA is 15.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.4x.
InterDigital, Inc.'s return on equity (ROE) is 41.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 21.1%.
Based on historical data, InterDigital, Inc. is trading at a P/E of 31.0x. This is at the 63th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
InterDigital, Inc.'s current dividend yield is 0.62% with a payout ratio of 14.9%.
InterDigital, Inc. has 80.3% gross margin and 55.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
InterDigital, Inc.'s Debt/EBITDA ratio is 0.9x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Lumpy catch-up licensing revenue
Metrics are mathematically derived from official filings.
Premium Multiples Price in Growth Recovery
Based on reported figures, IDCC trades at 24.28x trailing earnings and 13.31x EV/EBITDA, a premium to its own depressed earnings base that implies investors are pricing in a durable recovery from the 2025 trough.
The gap between trailing P/E of 24.28 and forward P/E of 30.68 is unusual, as it implies consensus expects earnings to decline on a forward basis, which may reflect the guided sequential step-down after the strong quarter. The PEG of 0.46 appears low only because it relies on a forward growth assumption that the 4.0% trailing revenue decline does not yet support. Investors should monitor whether the Amazon-driven ARR of $626M converts into sustained earnings or whether the multiple compresses as catch-up items normalize.
Operating Margins Track Catch-Up Timing
As reported in the quarterly series, IDCC's operating margin ranged from 30.2% to 68.3% over ten quarters, indicating earnings power is highly sensitive to lumpy licensing receipts rather than a stable run-rate.
Gross margins of 74.6% to 92.1% reflect the near-zero marginal cost of licensing, but the wide operating margin band shows that the fixed R&D and SG&A base of roughly $50-57M per quarter absorbs large swings in revenue. A normalized operating margin likely sits closer to the middle of the range than the recent 53.5% to 51.4% readings suggest. Net margin of 41.5% in 2026Q3 should be viewed as a peak-contribution quarter rather than a baseline.
Returns Oscillate Without Clear Compounding
Based on ROIC readings, IDCC moved from 3.5% in 2024Q3 to 15.9% in 2025Q2 and back to 7.8% in 2026Q3, showing returns that fluctuate with licensing timing rather than compounding steadily.
The ROE of 6.5% in the latest quarter sits well below the 17.8% peak, and the ROIC trend suggests returns are driven more by one-time receipts than by an improving capital base. Given the asset-light model and low debt, the modest ROE reflects a large equity base accumulating retained earnings more than a deterioration in operations. Investors should monitor whether ROIC can sustain above 10% across multiple quarters before concluding the business compounds returns.
Deleveraging Lowers Debt Service Pressure
As reported in financial statements, IDCC's debt-to-equity fell from 0.70 to 0.26 and interest coverage reached 12.11x in 2026Q3, indicating debt service has become comfortable relative to recent history.
Total debt declining to $318.4M while equity expanded suggests the company is retiring obligations from operating cash, which lowers refinancing risk. Interest coverage has swung widely from 2.5x to over 23x, which indicates the denominator, operating income, is volatile rather than the debt burden itself. Leverage appears modest, but investors should monitor whether coverage holds through a quarter with weaker catch-up receipts.
Liquidity Buffer Holds Under Stress
Based on reported figures, IDCC's current ratio of 1.90 and quick ratio of 1.90 in 2026Q3 provide a wide buffer, with cash of $639.2M covering short-term obligations many times over.
Because the current and quick ratios are nearly identical, receivables and contract assets appear to be the main current asset alongside cash, with no inventory dependence. The ratios have stayed between 1.51 and 1.96 across the period, suggesting the liquidity position is structurally stable rather than dependent on a single quarter. Under a severe revenue shock, the cash balance alone would likely sustain operations, though receivable timing could still create short-term cash gaps.
Peak Free Cash Flow Margin Misleads
The 77.2% free cash flow margin in 2026Q3 appears to overstate earning power, since FCF margins swung from negative values to 77.2% across the series and may reflect working capital reversal rather than durable economics.
Operating cash flow to net income ranged from -0.45 to 5.87, indicating that cash receipts are poorly aligned with reported earnings in any single quarter. Price-to-free-cash-flow of 14.01 looks attractive only if the latest quarter is representative, which the volatile series does not clearly support. The most commonly misapplied metric here is trailing P/E, which captures catch-up licensing payments as if they recur; a multi-year average of free cash flow or ARR-based revenue would better reflect the recurring base.