Latest Ratios: P/E Ratio 27.7x · EV/EBITDA 15.2x · 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 | $8.4B | $11.0B | $5.8B | $3.1B | $1.5B | $2.2B | $1.9B | $1.7B | $2.3B | $2.7B | $3.2B |
| Enterprise Value | $8.2B | $10.7B | $5.7B | $3.2B | $1.4B | $2.0B | $1.8B | $1.4B | $2.2B | $2.6B | $3.1B |
| P/E Ratio → | 27.67 | 26.98 | 16.05 | 14.24 | 16.12 | 40.47 | 42.14 | 82.56 | 36.70 | 15.64 | 10.40 |
| P/S Ratio | 10.12 | 13.16 | 6.63 | 5.55 | 3.29 | 5.26 | 5.25 | 5.43 | 7.63 | 5.11 | 4.83 |
| P/B Ratio | 10.22 | 9.97 | 6.71 | 5.24 | 2.06 | 2.97 | 2.37 | 2.20 | 2.50 | 3.12 | 4.26 |
| P/FCF | 15.97 | 20.77 | 21.66 | 18.04 | 6.20 | 24.64 | 15.57 | 33.67 | 21.34 | 9.77 | 8.30 |
| P/OCF | 15.50 | 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 | 15.23 | 19.95 | 11.23 | 10.82 | 6.29 | 13.23 | 13.23 | 12.60 | 17.26 | 7.21 | 6.32 |
| EV / EBIT | 17.77 | 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 | 0.5% | 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 | 3.6% | 3.7% | 6.2% | 7.0% | 6.2% | 2.5% | 2.4% | 1.2% | 2.7% | 6.4% | 9.6% |
| FCF Yield | 6.3% | 4.8% | 4.6% | 5.5% | 16.1% | 4.1% | 6.4% | 3.0% | 4.7% | 10.2% | 12.0% |
| Buyback Yield | 1.2% | 0.9% | 1.2% | 11.1% | 4.9% | 1.3% | 0.0% | 11.3% | 4.7% | 0.3% | 2.0% |
| Total Shareholder Yield | 1.8% | 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 27.7x. The historical average is 31.0x. This places it at the 63th percentile of its historical range.
InterDigital, Inc.'s current EV/EBITDA is 15.2x. 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 27.7x. 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 0.54% 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
Revenue concentration and lumpiness
Metrics are mathematically derived from official filings.
Margins Resilient Despite Revenue Swings
Gross margin averaged 80.3% over ten quarters, with 2026Q2 at 79.2%, reflecting near-zero marginal costs of licensing IP, though 2024Q1's 63.3% shows vulnerability to contract mix, per reported financials.
The high gross margin underscores the asset-light nature of the licensing model, but operating margin volatility—swinging from 30.2% in 2025Q4 to 68.3% in 2025Q2—reveals significant operating leverage. Net margin of 44.7% in 2026Q2 is inflated by ASC 606 catch-up payments, so investors should focus on the underlying run-rate margin, which appears closer to 30-40% based on non-catch-up quarters.
ROIC Cyclicality Masks Underlying Strength
ROIC ranged from 3.5% in 2024Q3 to 15.9% in 2025Q2, with 2026Q2 at 11.1%, reflecting lumpy revenue recognition and litigation timing, as reported in financial statements.
The wide swings in ROIC are driven by the timing of large license agreements and catch-up revenue, not by fundamental changes in capital efficiency. The company's asset-light model means ROIC is highly sensitive to revenue recognition, so a trailing twelve-month average ROIC of roughly 10% may better represent the underlying return. This suggests the company is compounding value, but investors should monitor whether the Amazon deal can sustain higher returns.
Working Capital Swings Reflect Contract Timing
DSO spiked to 167 days in 2025Q3 and 173 days in 2024Q3, while CCC reached 178 days in 2024Q3, indicating that payment terms and contract structures drive extreme variability, per SEC filings.
The absence of inventory (DIO not reported) and minimal DPO (23 days in 2026Q2) highlight the asset-light model, but the extreme DSO volatility suggests that revenue recognition and billing timing are the primary drivers of working capital. The negative cash conversion cycle in some quarters (e.g., 2026Q2) indicates that the company collects cash before paying obligations, but this is not a stable trend. Investors should adjust for contract timing to assess true efficiency.
Deleveraging Strengthens Balance Sheet
Debt-to-equity fell from 1.00 in 2024Q1 to 0.33 in 2026Q2, with interest coverage improving to 16.2x, indicating a deliberate reduction in leverage, as reported in financial statements.
The consistent decline in D/E and D/EBITDA (from 8.6x in 2024Q3 to 2.5x in 2026Q2) suggests that management is prioritizing balance sheet strength, likely to support capital returns and weather litigation cycles. Interest coverage of 16.2x in 2026Q2 provides ample cushion, but the volatility in EBITDA (due to revenue lumpiness) means coverage could compress in low-revenue quarters. The fortress balance sheet appears to be a strategic choice to mitigate business model risk.
Liquidity Buffer Supports Volatile Cash Flows
Current ratio improved from 1.34 in 2024Q1 to 1.74 in 2026Q2, with cash at $615.6M, providing a solid buffer against revenue volatility, based on recent balance sheet data.
The quick ratio equals the current ratio (1.74) because inventory is negligible, indicating that liquidity is driven by cash and receivables. However, the extreme swings in operating cash flow (from -$62.1M in 2024Q2 to $380.9M in 2025Q3) mean that the liquidity position could be tested during periods of low collections. The $738M cash position (including short-term investments) appears sufficient to cover debt service and ongoing litigation costs, but investors should monitor contract asset levels for potential write-downs.
P/E Misleads on Lump-Sum Revenue
The P/E ratio is commonly misapplied to IDCC because ASC 606 catch-up payments inflate earnings, making trailing P/E of 29.0 appear reasonable, but forward P/E of 39.3 suggests the market expects normalization, per reported figures.
The most misapplied ratio is the P/E, as it fails to adjust for the lumpy recognition of past sales. A better metric is EV/EBITDA (15.99x TTM), which is less distorted by non-cash items and catch-up revenue, but even that can be skewed by litigation costs. Investors should use a normalized earnings figure that excludes catch-up payments and adjusts for the timing of license agreements, or consider EV/ARR (enterprise value to annualized recurring revenue) to capture the recurring revenue base. The record ARR of $626 million suggests that the underlying earnings power may be higher than the trailing P/E implies, but the forward P/E of 39.3 indicates the market is pricing in a significant step-down from the recent quarter's beat.