Latest Ratios: P/E Ratio 44.1x · EV/EBITDA 16.2x · ROE 14.2%. (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 | $18.4B | $13.9B | $11.8B | $9.9B | $6.8B | $8.8B | $6.7B | $6.5B | $4.3B | $4.7B | $3.5B |
| Enterprise Value | $17.6B | $13.0B | $12.1B | $9.7B | $6.8B | $8.5B | $6.1B | $6.1B | $3.8B | $4.5B | $3.2B |
| P/E Ratio → | 44.14 | 28.40 | 22.68 | 24.06 | 18.52 | 27.92 | 92.80 | 20.14 | 12.84 | 41.70 | 18.63 |
| P/S Ratio | 3.55 | 3.52 | 3.24 | 3.01 | 2.27 | 3.20 | 2.71 | 2.30 | 1.56 | 1.84 | 1.44 |
| P/B Ratio | 4.01 | 3.39 | 4.25 | 3.89 | 3.01 | 3.96 | 3.16 | 3.15 | 2.35 | 2.97 | 2.43 |
| P/FCF | 28.44 | 25.34 | 26.83 | 22.94 | 39.03 | — | 18.02 | 24.51 | 15.74 | 36.07 | 24.54 |
| P/OCF | 27.50 | 20.74 | 20.90 | 18.35 | 24.44 | — | 15.39 | 18.26 | 11.65 | 19.39 | 13.72 |
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 | — | 3.31 | 3.33 | 2.94 | 2.26 | 3.07 | 2.45 | 2.15 | 1.40 | 1.75 | 1.34 |
| EV / EBITDA | 16.23 | 15.76 | 14.85 | 15.16 | 11.75 | 13.74 | 17.94 | 11.68 | 7.57 | 10.65 | 8.51 |
| EV / EBIT | 25.66 | 18.65 | 17.65 | 17.94 | 14.31 | 20.77 | 18.91 | 17.17 | 9.80 | 14.17 | 11.68 |
| EV / FCF | — | 23.85 | 27.56 | 22.47 | 38.89 | — | 16.28 | 22.95 | 14.10 | 34.35 | 22.80 |
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 | 35.4% | 35.4% | 34.4% | 33.7% | 30.9% | 32.5% | 31.6% | 32.0% | 32.3% | 31.6% | 31.5% |
| Operating Margin | 17.4% | 17.4% | 18.6% | 16.1% | 15.7% | 18.2% | 9.1% | 14.5% | 14.5% | 12.4% | 11.5% |
| Net Profit Margin | 12.4% | 12.4% | 14.3% | 12.5% | 12.3% | 11.4% | 2.9% | 11.4% | 12.2% | 4.4% | 7.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 14.2% | 14.2% | 19.5% | 17.1% | 16.4% | 14.5% | 3.4% | 16.7% | 19.5% | 7.5% | 13.3% |
| ROA | 8.9% | 8.9% | 12.0% | 10.6% | 10.0% | 8.1% | 1.7% | 8.2% | 8.8% | 3.1% | 5.1% |
| ROIC | 16.1% | 16.1% | 18.7% | 17.3% | 17.1% | 22.5% | 10.8% | 20.3% | 21.7% | 18.8% | 17.5% |
| ROCE | 16.3% | 16.3% | 21.6% | 19.2% | 17.9% | 16.7% | 6.8% | 13.2% | 13.8% | 11.5% | 10.0% |
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 | 0.23 | 0.23 | 0.27 | 0.11 | 0.24 | 0.13 | 0.10 | 0.09 | 0.06 | 0.10 | 0.15 |
| Debt / EBITDA | 1.12 | 1.12 | 0.93 | 0.45 | 0.93 | 0.47 | 0.63 | 0.37 | 0.23 | 0.39 | 0.57 |
| Net Debt / Equity | — | -0.20 | 0.11 | -0.08 | -0.01 | -0.16 | -0.30 | -0.20 | -0.24 | -0.14 | -0.17 |
| Net Debt / EBITDA | -0.99 | -0.99 | 0.39 | -0.32 | -0.04 | -0.58 | -1.91 | -0.79 | -0.88 | -0.53 | -0.65 |
| Debt / FCF | — | -1.49 | 0.72 | -0.47 | -0.14 | — | -1.74 | -1.56 | -1.64 | -1.72 | -1.74 |
| Interest Coverage | 14.54 | 14.54 | 18.69 | 28.06 | 43.37 | — | — | — | 783.00 | 32.25 | — |
Net cash position: cash ($1.7B) exceeds total debt ($927M)
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 | 2.58 | 2.58 | 1.40 | 1.79 | 1.55 | 1.86 | 2.20 | 2.04 | 1.89 | 1.64 | 1.62 |
| Quick Ratio | 2.07 | 2.07 | 0.96 | 1.24 | 1.10 | 1.39 | 1.79 | 1.58 | 1.45 | 1.30 | 1.28 |
| Cash Ratio | 1.34 | 1.34 | 0.33 | 0.47 | 0.47 | 0.70 | 0.99 | 0.72 | 0.64 | 0.43 | 0.53 |
| Asset Turnover | — | 0.62 | 0.77 | 0.83 | 0.79 | 0.78 | 0.58 | 0.69 | 0.71 | 0.70 | 0.67 |
| Inventory Turnover | 3.79 | 3.79 | 4.03 | 3.78 | 3.87 | 4.33 | 4.70 | 4.93 | 4.88 | 5.67 | 5.58 |
| Days Sales Outstanding | — | 74.79 | 74.13 | 77.94 | 80.03 | 76.00 | 77.57 | 76.48 | 74.70 | 88.89 | 79.50 |
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 | 0.7% | 0.8% | 0.9% | 1.0% | 1.3% | 0.9% | 0.9% | 0.8% | 1.1% | 1.0% | 1.3% |
| Payout Ratio | 22.7% | 22.7% | 20.2% | 23.3% | 24.0% | 24.0% | 81.4% | 16.0% | 14.2% | 40.0% | 24.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.3% | 3.5% | 4.4% | 4.2% | 5.4% | 3.6% | 1.1% | 5.0% | 7.8% | 2.4% | 5.4% |
| FCF Yield | 3.5% | 3.9% | 3.7% | 4.4% | 2.6% | — | 5.6% | 4.1% | 6.4% | 2.8% | 4.1% |
| Buyback Yield | 2.8% | 3.8% | 0.9% | 0.6% | 3.6% | 1.3% | 1.3% | 0.6% | 1.3% | 0.7% | 2.2% |
| Total Shareholder Yield | 3.5% | 4.6% | 1.8% | 1.6% | 4.9% | 2.2% | 2.1% | 1.4% | 2.4% | 1.6% | 3.5% |
| Shares Outstanding | — | $80M | $82M | $83M | $84M | $87M | $87M | $89M | $89M | $89M | $90M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying ITT stock.
ITT Inc.'s current P/E ratio is 44.1x. The historical average is 14.1x. This places it at the 97th percentile of its historical range.
ITT Inc.'s current EV/EBITDA is 16.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.3x.
ITT Inc.'s return on equity (ROE) is 14.2%. The historical average is 23.2%.
Based on historical data, ITT Inc. is trading at a P/E of 44.1x. This is at the 97th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
ITT Inc.'s current dividend yield is 0.68% with a payout ratio of 22.7%.
ITT Inc. has 35.4% gross margin and 17.4% operating margin. Operating margin between 10-20% is typical for established companies.
ITT Inc.'s Debt/EBITDA ratio is 1.1x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Earnings miss versus elevated expectations
Metrics are mathematically derived from official filings.
Premium Multiple Prices in Growth Expectations
According to current market data, ITT trades at 33.64x trailing earnings and 24.71x forward earnings, a premium that the 0.69 PEG ratio suggests investors are justifying through expected earnings growth rather than current delivery.
The gap between trailing and forward P/E implies the market is capitalizing a substantial earnings rebound, which the recent EPS shortfall places under pressure. Versus its own history and the peer set, where Franklin Electric and Xylem trade at lower multiples on comparable or weaker returns, ITT's valuation appears to reflect a multi-industrial quality premium. Investors should monitor whether subsequent quarters validate the forward estimates before the multiple can be sustained.
Margin Gains Absorbed Below Gross Profit
Based on reported figures, gross margin rose from 34.1% in 2024Q4 to 38.2% in 2026Q3, yet operating margin of 15.7% in the latest quarter remains below the 23.5% peak, indicating that cost absorption below gross profit is offsetting pricing and mix gains.
The widening spread between gross and operating margin suggests that SG&A or integration costs tied to recent acquisitions are consuming the improvement at the gross line. Net margin of 8.6% versus a 18.2% peak in 2024Q3 reinforces that earnings power has compressed even as top-line and gross profitability improved. This pattern may indicate that acquired earnings are not yet translating into comparable per-share economics.
Returns Compressing Under Acquisition Capital
As reported in financial statements, ROIC fell from 5.2% in 2024Q3 to 2.2% in 2026Q3, while ROE declined to 2.6%, a decay that appears driven by a rapidly expanded capital base rather than deteriorating operating economics alone.
Total assets roughly doubling over two years, largely through goodwill-heavy acquisitions, has enlarged invested capital faster than operating profit, which mechanically depresses return ratios. Relative to Xylem's 7.6% ROIC and Franklin Electric's 15.1%, ITT's returns now trail peers, suggesting the acquisition program has not yet earned its cost of capital. Whether this is temporary depends on integration execution and synergy realization in coming periods.
Leverage Reset Warrants Verification
According to reported balance sheet figures, debt-to-equity fell from 0.84 in 2026Q1 to 0.23 in 2025Q4, while interest coverage remains high at 5.14x in 2026Q3, suggesting debt service is comfortable even though the sharp reset requires source verification.
Interest coverage well above 5x indicates that current debt service does not appear strained, consistent with a healthy balance sheet. The abrupt movement in leverage between quarters, however, may reflect timing of acquisition financing and cash deployment rather than a structural deleveraging, and investors should confirm the source before treating the lower ratio as durable. Debt-to-EBITDA of 10.97x in the latest quarter, though it reflects trailing earnings depressed by the miss, warrants monitoring.
Working Capital Cycle Lengthening Modestly
Based on ITT's reported figures, the cash conversion cycle widened from 96 days in 2025Q1 to 101 days in 2026Q3, with DSO and DIO broadly stable, indicating that payables timing rather than receivables is the variable absorbing working capital.
Days payable outstanding near 64 days, versus a 71-day peak in 2024Q3, suggests suppliers are being paid faster, which tightens cash conversion and may reflect supplier terms normalizing after acquisitions. Asset turnover of 0.13x is low in absolute terms, consistent with a goodwill-heavy asset base rather than operational inefficiency. Investors should watch whether payables recover to support cash generation.
Misapplied Ratio: Trailing P/E on Acquisitive Earnings
The trailing P/E of 33.64x is most commonly misapplied to ITT because it is distorted by acquisition accounting, amortization, and non-recurring items, obscuring underlying earnings power that adjusted EBITDA or free cash flow yield would more reliably reflect.
For a company whose total assets roughly doubled through acquisitions, reported EPS carries heavy amortization and integration charges that depress the denominator unpredictably from quarter to quarter. Free cash flow yield, normalized for acquisition outflows, would better reveal whether the business generates cash commensurate with its valuation. Relying on trailing P/E may therefore overstate or understate valuation depending on which non-recurring items fall in a given period.