Latest Ratios: P/E Ratio 18.4x · EV/EBITDA 51.4x · ROE 19.8%. (2016–2025 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 | $1.8B | $2.7B | $5.7B | $6.0B | $7.1B | $6.3B | $4.9B | $1.8B | $616M | — | — |
| Enterprise Value | $1.8B | $2.7B | $5.5B | $5.8B | $6.6B | $6.1B | $4.7B | $1.8B | $544M | — | — |
| P/E Ratio → | 18.38 | 18.86 | 105.93 | — | — | — | — | — | — | — | — |
| P/S Ratio | 2.09 | 3.01 | 7.05 | 9.54 | 17.34 | 26.87 | 42.50 | 21.53 | 12.18 | — | — |
| P/B Ratio | 2.44 | 3.51 | 8.21 | 10.41 | 14.26 | 27.38 | 21.35 | 12.63 | 3.76 | — | — |
| P/FCF | 18.83 | 34.97 | 62.14 | 5821.23 | 2859.16 | — | — | — | — | — | — |
| P/OCF | 15.76 | 23.46 | 43.47 | 241.79 | 611.18 | — | — | — | — | — | — |
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 | — | 2.93 | 6.91 | 9.28 | 16.29 | 26.10 | 41.12 | 21.56 | 10.75 | — | — |
| EV / EBITDA | 51.43 | 41.16 | 130.03 | — | — | — | — | — | — | — | — |
| EV / EBIT | 34.75 | 40.58 | 94.80 | — | — | — | — | — | — | — | — |
| EV / FCF | — | 34.05 | 60.84 | 5664.30 | 2687.23 | — | — | — | — | — | — |
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 | 85.4% | 85.4% | 84.7% | 84.5% | 83.8% | 85.7% | 84.7% | 83.4% | 80.1% | 78.9% | 76.2% |
| Operating Margin | 5.6% | 5.6% | 4.5% | -6.4% | -11.7% | -17.1% | -48.7% | -42.5% | -40.3% | -56.0% | -105.0% |
| Net Profit Margin | 15.9% | 15.9% | 6.7% | -3.4% | -11.0% | -18.0% | -49.6% | -40.5% | -43.1% | -61.3% | -112.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 19.8% | 19.8% | 8.5% | -4.0% | -12.4% | -18.3% | -31.0% | -21.9% | -26.4% | -1180.0% | — |
| ROA | 17.0% | 17.0% | 7.2% | -3.4% | -10.4% | -14.6% | -24.7% | -17.4% | -19.4% | -91.7% | -141.3% |
| ROIC | 6.0% | 6.0% | 5.5% | -12.5% | -59.7% | -50.4% | -39.7% | -22.4% | -30.4% | -210.8% | — |
| ROCE | 6.7% | 6.7% | 5.5% | -7.3% | -12.6% | -15.5% | -26.5% | -19.8% | -19.7% | -134.6% | -296.1% |
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 | 0.04 | 0.04 | 0.05 | 0.04 | 0.03 | 0.15 | 0.13 | 0.18 | 0.15 | 11.09 | — |
| Debt / EBITDA | 0.50 | 0.50 | 0.75 | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.09 | -0.17 | -0.28 | -0.86 | -0.79 | -0.70 | 0.02 | -0.44 | 5.06 | — |
| Net Debt / EBITDA | -1.12 | -1.12 | -2.78 | — | — | — | — | — | — | — | — |
| Debt / FCF | — | -0.93 | -1.30 | -156.92 | -171.93 | — | — | — | — | — | — |
| Interest Coverage | 480.54 | 480.54 | 2657.95 | — | -25.40 | -18.72 | -25.97 | -14.67 | -5.61 | -8.99 | -13.22 |
Net cash position: cash ($105M) exceeds total debt ($32M)
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 | 6.08 | 6.08 | 7.13 | 7.60 | 8.66 | 6.50 | 13.02 | 10.12 | 17.86 | 3.37 | 1.68 |
| Quick Ratio | 4.56 | 4.56 | 6.22 | 7.17 | 8.47 | 6.08 | 12.61 | 9.78 | 17.63 | 2.86 | 1.22 |
| Cash Ratio | 3.21 | 3.21 | 5.03 | 5.89 | 7.38 | 5.19 | 11.31 | 8.87 | 16.87 | 2.26 | 0.92 |
| Asset Turnover | — | 1.01 | 0.99 | 0.92 | 0.72 | 0.79 | 0.41 | 0.45 | 0.25 | 1.14 | 1.25 |
| Inventory Turnover | 0.92 | 0.92 | 1.54 | 2.85 | 5.56 | 1.93 | 2.08 | 2.34 | 3.77 | 1.64 | 1.16 |
| Days Sales Outstanding | — | 47.90 | 42.31 | 52.51 | 54.79 | 53.45 | 79.29 | 58.41 | 48.10 | 49.29 | 46.46 |
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 | 5.4% | 5.3% | 0.9% | — | — | — | — | — | — | — | — |
| FCF Yield | 5.3% | 2.9% | 1.6% | 0.0% | 0.0% | — | — | — | — | — | — |
| Buyback Yield | 9.5% | 6.4% | 1.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 9.5% | 6.4% | 1.3% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $30M | $31M | $29M | $28M | $27M | $26M | $24M | $15M | $13M | $12M |
Includes 30+ ratios · 10 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying INSP stock.
Inspire Medical Systems, Inc.'s current P/E ratio is 18.4x. The historical average is 62.4x.
Inspire Medical Systems, Inc.'s current EV/EBITDA is 51.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 41.2x.
Inspire Medical Systems, Inc.'s return on equity (ROE) is 19.8%. The historical average is -10.7%.
Based on historical data, Inspire Medical Systems, Inc. is trading at a P/E of 18.4x. Compare with industry peers and growth rates for a complete picture.
Inspire Medical Systems, Inc. has 85.4% gross margin and 5.6% operating margin.
Inspire Medical Systems, Inc.'s Debt/EBITDA ratio is 0.5x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin Recovery Execution Risk
Metrics are mathematically derived from official filings.
Trailing Multiple Masks Forward Premium
Based on INSP's reported figures, the trailing P/E of 13.08 sits well below the forward P/E of 51.30, a gap that signals the market is pricing a sharp earnings recovery rather than current profitability.
The compression from trailing to forward earnings is not a sign of cheapness, since the trailing P/E is flattered by the Q4 2025 net income of $136.1M, which substantially exceeded operating income of $46.1M and likely reflects tax or non-operating items. On an EV/EBITDA basis of 27.28, the stock is priced for sustained margin expansion, which appears inconsistent with the recent quarters of negative operating margin. Investors should treat the forward multiple as a bet on operating leverage that has not yet materialized in reported results.
Gross Margin Strength Obscured by SG&A
As reported in financial statements, INSP's gross margin held at 86.0% in 2026Q3 while operating margin fell to negative 13.9%, indicating that selling and administrative spend absorbs nearly all of the device-level profit.
The stability of gross margin between 84% and 87% across ten quarters suggests the proprietary device generates durable pricing power, which is the strongest element of the earnings base. The problem sits below the gross line, where SG&A intensity from direct-to-consumer marketing and the specialized sales force has overwhelmed gross profit as revenue softened. Net margin of 15.95% in the latest reported period should be viewed skeptically given the operating loss, as it likely depends on non-operating items rather than sustainable core earnings.
Returns Oscillate Around Zero
According to reported quarterly data, INSP's ROIC moved from 4.2% in 2024Q4 to negative 3.1% in 2026Q3, indicating that returns on its large unlevered capital base have not compounded over the period.
The equity base has grown to roughly $827M while ROE has oscillated between negative 3% and positive 19% depending on quarter, which suggests returns are driven by lumpy non-operating items rather than steady operating efficiency. Because the company carries almost no debt, ROIC and ROE are closely tied, and the lack of leverage means weak operating returns cannot be amplified or masked financially. Compounding would require operating margins to turn durably positive, which the current trajectory does not yet demonstrate.
Liquidity Buffer Exceeds Operating Needs
Based on INSP's reported figures, the current ratio of 6.45 and quick ratio of 4.61 in 2026Q3 imply a liquidity cushion far larger than the company's cash-consuming operating profile appears to require.
The high quick ratio, which excludes inventory, indicates that the company's liquidity does not depend on inventory conversion, a meaningful point for a device maker carrying substantial implant stock. The position would likely hold under moderate stress given minimal debt and cash of $190.8M, though the inventory-heavy DIO of 557 days warrants monitoring for potential write-downs during product transitions. Investors should watch whether cash erodes as operating losses persist, since the buffer is ample today but is being consumed by negative earnings.
Gross Margin Versus Cash Economics
The ratio most commonly misapplied to INSP is gross margin, which as reported at 86.0% in 2026Q3 overstates economic health because it excludes the heavy selling costs required to generate each implant.
Gross margin is the headline metric for medical device companies, but for a business whose growth depends on direct-to-consumer advertising and a specialized surgical sales force, it obscures the true unit economics. A more useful adjustment would be contribution margin after sales and marketing, or customer acquisition cost relative to lifetime implant revenue. Stock-based compensation of $26.9M to $41.7M per quarter further separates reported profitability from cash economics and should be adjusted for before drawing conclusions about earning power.