Latest Ratios: P/E Ratio 107.1x · EV/EBITDA 36.7x · ROE 1.5%. (2004–2025 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 | $3.3B | $3.1B | $3.2B | $5.1B | $4.8B | $9.3B | $12.0B | $7.8B | $6.2B | $11.7B | $5.3B |
| Enterprise Value | $2.9B | $2.7B | $2.6B | $4.6B | $4.2B | $8.6B | $11.2B | $7.2B | $5.7B | $10.9B | $4.7B |
| P/E Ratio → | 107.12 | 98.08 | — | 23.44 | 43.83 | 33.36 | 75.35 | 43.26 | 15.35 | 33.67 | 20.35 |
| P/S Ratio | 3.31 | 3.04 | 3.30 | 3.99 | 3.37 | 6.35 | 10.02 | 5.94 | 4.25 | 8.31 | 5.28 |
| P/B Ratio | 1.57 | 1.43 | 1.59 | 2.13 | 2.02 | 3.38 | 4.64 | 3.25 | 2.81 | 5.79 | 3.41 |
| P/FCF | — | — | 21.58 | 27.69 | 47.03 | 34.82 | 60.90 | 41.07 | 26.61 | 42.15 | 32.14 |
| P/OCF | 44.05 | 40.53 | 13.01 | 17.35 | 22.67 | 23.82 | 42.18 | 24.12 | 15.76 | 28.96 | 18.17 |
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 | — | 2.66 | 2.68 | 3.60 | 2.91 | 5.91 | 9.33 | 5.45 | 3.91 | 7.70 | 4.70 |
| EV / EBITDA | 36.68 | 33.36 | — | 15.38 | 16.00 | 18.60 | 38.21 | 21.72 | 9.44 | 17.63 | 11.37 |
| EV / EBIT | 223.79 | 59.14 | 181.12 | 20.04 | 17.98 | 24.47 | 48.40 | 24.65 | 11.02 | 19.19 | 12.82 |
| EV / FCF | — | — | 17.55 | 25.01 | 40.59 | 32.38 | 56.69 | 37.74 | 24.47 | 39.05 | 28.61 |
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 | 38.0% | 38.0% | 34.6% | 42.1% | 38.9% | 47.7% | 44.9% | 46.1% | 54.8% | 56.6% | 54.9% |
| Operating Margin | 1.3% | 1.3% | -21.3% | 18.0% | 11.9% | 25.2% | 16.5% | 17.8% | 35.9% | 39.1% | 36.2% |
| Net Profit Margin | 3.1% | 3.1% | -18.6% | 17.0% | 7.7% | 19.1% | 13.3% | 13.7% | 27.7% | 24.7% | 25.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 1.5% | 1.5% | -8.2% | 9.1% | 4.3% | 10.4% | 6.4% | 7.8% | 19.1% | 19.4% | 18.5% |
| ROA | 1.3% | 1.3% | -7.3% | 8.0% | 3.7% | 9.1% | 5.6% | 6.8% | 16.3% | 16.7% | 16.1% |
| ROIC | 0.6% | 0.6% | -9.3% | 9.5% | 6.7% | 14.3% | 8.4% | 10.1% | 27.4% | 38.7% | 32.7% |
| ROCE | 0.6% | 0.6% | -9.1% | 9.4% | 6.4% | 13.2% | 7.6% | 9.6% | 23.3% | 29.0% | 24.8% |
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 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 |
| Debt / EBITDA | 0.22 | 0.22 | — | 0.06 | 0.15 | 0.13 | 0.15 | 0.14 | 0.08 | 0.08 | 0.10 |
| Net Debt / Equity | — | -0.18 | -0.30 | -0.21 | -0.28 | -0.24 | -0.32 | -0.26 | -0.23 | -0.43 | -0.37 |
| Net Debt / EBITDA | -4.83 | -4.83 | — | -1.65 | -2.54 | -1.40 | -2.84 | -1.92 | -0.83 | -1.40 | -1.40 |
| Debt / FCF | — | — | -4.03 | -2.68 | -6.44 | -2.44 | -4.21 | -3.33 | -2.14 | -3.10 | -3.53 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | 282.83 |
Net cash position: cash ($404M) exceeds total debt ($17M)
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 | 6.98 | 8.91 | 7.23 | 7.49 | 10.01 | 9.88 | 7.35 | 8.82 | 8.22 |
| Quick Ratio | 4.74 | 4.74 | 5.59 | 6.80 | 5.38 | 6.02 | 8.31 | 7.90 | 5.70 | 7.27 | 6.71 |
| Cash Ratio | 3.59 | 3.59 | 4.54 | 5.48 | 4.29 | 4.83 | 6.48 | 6.16 | 4.25 | 5.61 | 5.25 |
| Asset Turnover | — | 0.41 | 0.43 | 0.48 | 0.52 | 0.46 | 0.41 | 0.48 | 0.57 | 0.59 | 0.56 |
| Inventory Turnover | 1.99 | 1.99 | 2.24 | 1.64 | 1.72 | 1.66 | 1.81 | 1.86 | 1.63 | 1.99 | 1.90 |
| Days Sales Outstanding | — | 66.08 | 63.92 | 62.10 | 53.96 | 65.49 | 80.35 | 66.21 | 63.88 | 61.47 | 56.55 |
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 | 0.9% | 1.0% | — | 4.3% | 2.3% | 3.0% | 1.3% | 2.3% | 6.5% | 3.0% | 4.9% |
| FCF Yield | — | — | 4.6% | 3.6% | 2.1% | 2.9% | 1.6% | 2.4% | 3.8% | 2.4% | 3.1% |
| Buyback Yield | 1.6% | 1.7% | 10.7% | 4.4% | 10.4% | 1.5% | 0.3% | 0.5% | 2.8% | 0.3% | 0.2% |
| Total Shareholder Yield | 1.6% | 1.7% | 10.7% | 4.4% | 10.4% | 1.5% | 0.3% | 0.5% | 2.8% | 0.3% | 0.2% |
| Shares Outstanding | — | $43M | $44M | $47M | $51M | $54M | $54M | $54M | $55M | $55M | $54M |
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying IPGP stock.
IPG Photonics Corporation's current P/E ratio is 107.1x. The historical average is 42.0x. This places it at the 95th percentile of its historical range.
IPG Photonics Corporation's current EV/EBITDA is 36.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.7x.
IPG Photonics Corporation's return on equity (ROE) is 1.5%. The historical average is 15.3%.
Based on historical data, IPG Photonics Corporation is trading at a P/E of 107.1x. This is at the 95th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
IPG Photonics Corporation has 38.0% gross margin and 1.3% operating margin.
IPG Photonics Corporation's Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin compression from competition
Metrics are mathematically derived from official filings.
Margin Compression Persists Despite Revenue Uptick
Gross margin recovered to 40.4% in Q2 2026, yet operating margin remains a razor-thin 1.6%, far below historical norms above 20%, according to recent SEC filings.
The sequential improvement in gross margin from 37.5% in Q1 2026 suggests some pricing stabilization, but the operating margin's failure to scale indicates that fixed costs and R&D are absorbing incremental revenue. This implies that the company's cost structure is not yet aligned with the lower-growth, more competitive environment, and investors should monitor whether volume gains can eventually translate into operating leverage.
Return on Capital Stuck Near Zero
ROIC has hovered between -0.3% and 0.8% over the past year, with Q2 2026 at 0.2%, as reported in financial statements, indicating minimal value creation on invested capital.
The near-zero ROIC reflects both depressed margins and a high asset base from vertical integration. With asset turnover stagnant at 0.11, the company is not generating sufficient sales per dollar of assets, and the modest margin improvements are insufficient to move the needle. This suggests that unless margins recover substantially, the company is not compounding returns, and the capital employed in manufacturing may be yielding returns below the cost of capital.
Working Capital Drag Intensifies
Cash conversion cycle lengthened to 213 days in Q2 2026, up from 205 days in Q4 2025, driven by inventory days of 178, according to recent financial disclosures.
Inventory days have remained elevated, reflecting the risk of obsolescence in a rapidly advancing technology market. The CCC is significantly higher than typical industrial peers, indicating that cash is tied up in inventory for extended periods. This inefficiency may be a deliberate strategy to ensure product availability, but it also suggests that working capital management is not a source of cash generation, and any demand slowdown could exacerbate cash flow strain.
Minimal Debt Masks Operational Strain
With a D/E ratio of 0.01 and interest coverage not reported, IPGP's balance sheet shows negligible leverage, but this financial conservatism may reflect limited growth opportunities, as per reported figures.
The company's near-zero debt provides a strong buffer against cyclical downturns, but it also implies that management is not using leverage to enhance returns. The absence of interest coverage data suggests that interest expense is immaterial, which is positive, but the low leverage may indicate a lack of attractive investment opportunities. Investors should monitor whether the company's cash position, which has declined from $883.9M in 2024Q3 to $399.2M in 2026Q2, is being deployed effectively or simply funding operations.
Ample Liquidity Provides Cyclical Buffer
Current ratio stands at 6.18 with quick ratio at 4.80, indicating strong short-term solvency, but cash has been drawn down significantly over the past year, according to recent SEC filings.
The high current and quick ratios suggest that IPGP can easily meet its short-term obligations, even under stress. However, the decline in cash from $883.9M to $399.2M over the past year indicates that the company is using its liquidity to fund operations and capital expenditures, which may not be sustainable if cash flow remains erratic. The inventory-heavy current assets also mean that the quick ratio, while still high, is more indicative of true liquidity, and the company's ability to convert inventory to cash quickly is uncertain.
P/E Misleads in Cyclical Downturn
The trailing P/E of 128.9 is distorted by depressed earnings, while forward P/E of 74.0 still appears rich; EV/EBITDA of 45.1 is more telling, as per current valuation multiples.
The P/E ratio is commonly misapplied to IPGP because earnings are near cyclical troughs, making the multiple appear extremely high. A more appropriate metric is EV/EBITDA, which at 45.1 still indicates a premium valuation, but the forward EV/EBITDA of 16.9 suggests the market expects significant margin recovery. Investors should focus on normalized earnings power and cash flow metrics, such as EV/EBITDA, rather than P/E, to assess valuation in this capital-intensive, cyclical business.