Latest Ratios: P/E Ratio 34.7x · EV/EBITDA 21.9x · 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 | $18.9B | $13.9B | $11.8B | $9.9B | $6.8B | $8.8B | $6.7B | $6.5B | $4.3B | $4.7B | $3.5B |
| Enterprise Value | $18.1B | $13.0B | $12.1B | $9.7B | $6.8B | $8.5B | $6.1B | $6.1B | $3.8B | $4.5B | $3.2B |
| P/E Ratio → | 34.69 | 28.40 | 22.68 | 24.06 | 18.52 | 27.92 | 92.80 | 20.14 | 12.84 | 41.70 | 18.63 |
| P/S Ratio | 4.81 | 3.52 | 3.24 | 3.01 | 2.27 | 3.20 | 2.71 | 2.30 | 1.56 | 1.84 | 1.44 |
| P/B Ratio | 4.14 | 3.39 | 4.25 | 3.89 | 3.01 | 3.96 | 3.16 | 3.15 | 2.35 | 2.97 | 2.43 |
| P/FCF | 34.61 | 25.32 | 26.83 | 22.94 | 39.03 | — | 18.02 | 24.51 | 15.74 | 36.07 | 24.54 |
| P/OCF | 28.33 | 20.73 | 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 | 21.91 | 15.76 | 14.85 | 15.16 | 11.75 | 13.74 | 17.94 | 11.68 | 7.57 | 10.65 | 8.51 |
| EV / EBIT | 26.49 | 18.65 | 17.65 | 17.94 | 14.31 | 20.77 | 18.91 | 17.17 | 9.80 | 14.17 | 11.68 |
| EV / FCF | — | 23.83 | 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 | 2.9% | 3.5% | 4.4% | 4.2% | 5.4% | 3.6% | 1.1% | 5.0% | 7.8% | 2.4% | 5.4% |
| FCF Yield | 2.9% | 3.9% | 3.7% | 4.4% | 2.6% | — | 5.6% | 4.1% | 6.4% | 2.8% | 4.1% |
| Buyback Yield | 2.7% | 3.8% | 0.9% | 0.6% | 3.6% | 1.3% | 1.3% | 0.6% | 1.3% | 0.7% | 2.2% |
| Total Shareholder Yield | 3.4% | 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 34.7x. The historical average is 14.1x. This places it at the 93th percentile of its historical range.
ITT Inc.'s current EV/EBITDA is 21.9x. 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 34.7x. This is at the 93th 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 0.66% 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
Integration and cyclicality exposure
Metrics are mathematically derived from official filings.
Premium Multiple Reflects Transformation
ITT trades at 35.9x trailing earnings and 22.7x EV/EBITDA, per recent filings, a premium to peers like Xylem (30.5x P/E) and Franklin Electric (32.9x P/E), suggesting the market prices in sustained growth.
The forward P/E of 28.1x and PEG of 0.73 imply that the market expects double-digit earnings growth, likely driven by the SPX FLOW acquisition and aerospace momentum. However, the EV/EBITDA premium over Xylem (15.9x) and Franklin Electric (14.4x) may be justified if ITT achieves the synergies and margin expansion embedded in guidance. Investors should monitor whether the integration of Svanehøj and SPX FLOW delivers the projected cost savings, as any shortfall could compress the multiple.
Margin Resilience Amid Mix Shifts
Gross margin held at 34.6% in Q2 2026, per the latest income statement, while operating margin compressed to 12.2% from 18.0% in Q1, indicating that revenue growth is not translating proportionally to operating profit.
The operating margin drop likely reflects acquisition-related costs and SG&A surge (up 62% YoY), as noted in prior analysis. Net margin fell to 5.8% in Q2 2026 from 12.5% in Q4 2025, suggesting non-operating items or tax effects are weighing on profitability. The underlying gross margin stability suggests the core business remains competitive, but investors should watch for margin recovery as integration costs subside.
ROIC Dip Signals Integration Drag
ROIC fell to 1.7% in Q2 2026 from 4.1% in Q4 2025, per quarterly data, as the SPX FLOW acquisition expanded the capital base faster than operating income, indicating near-term value creation is under pressure.
The decline in ROIC from a peak of 5.2% in Q3 2024 to 1.7% in Q2 2026 suggests that the acquisition has yet to generate returns above the cost of capital. ROE similarly dropped to 1.8% from 4.8% in Q3 2025, reflecting lower net income and a larger equity base. If management successfully integrates the acquired businesses and achieves the raised guidance, ROIC should recover, but the current trend warrants caution.
Working Capital Stretch Post-Acquisition
Cash conversion cycle lengthened to 100 days in Q2 2026 from 95 days in Q1, per company filings, driven by higher DSO (70 days) and DIO (90 days), indicating that the acquisition is tying up more cash in operations.
The CCC has been relatively stable around 100 days over the past year, but the increase in DSO from 74 days in Q1 2024 to 70 days in Q2 2026 (though slightly down from 75 in Q1 2026) suggests that receivables collection is not deteriorating significantly. However, DIO remains elevated at 90 days, reflecting inventory build-up likely due to the acquired businesses. Asset turnover fell to 0.13x in Q2 2026 from 0.19x in Q4 2025, indicating that the expanded asset base is not yet generating proportional revenue.
Leverage Jumps but Coverage Remains Adequate
Debt-to-equity rose to 0.80 in Q2 2026 from 0.23 in Q4 2025, per the balance sheet, while interest coverage fell to 3.7x from 12.8x, indicating increased financial risk but still manageable debt service.
The acquisition of SPX FLOW was largely debt-financed, pushing D/EBITDA to 15.8x in Q2 2026 from 4.3x in Q4 2025, a significant increase. Interest coverage of 3.7x is still above the 2x threshold typically considered safe, but it is a sharp decline from the 20x+ levels seen in 2024. Investors should monitor whether the company can deleverage through strong cash flow generation, as the current leverage may constrain future capital allocation flexibility.
Liquidity Buffer Thins Despite Cash
Current ratio fell to 1.26 in Q2 2026 from 1.53 in Q1, per the balance sheet, while quick ratio dropped to 0.85, indicating that the company's short-term obligations are increasingly covered by inventory rather than cash.
The quick ratio below 1.0 suggests that ITT may face liquidity pressure if it cannot convert inventory to cash quickly, especially given the elevated DIO of 90 days. However, the company still holds $590.8M in cash, and the robust FCF margin of 11.0% in Q2 2026 provides a cushion. The thinning liquidity position is a direct result of the acquisition, and investors should watch for any further deterioration in working capital metrics.
Misapplied EV/EBITDA in Cyclical Context
EV/EBITDA is often misapplied to ITT because it ignores the lumpy, project-based revenue in the Industrial Process segment and the high goodwill from acquisitions, which may overstate earnings quality.
The current EV/EBITDA of 22.7x appears rich, but it is distorted by the recent acquisition that has temporarily depressed EBITDA margins. A more appropriate metric is EV/EBIT or EV/EBITA, which excludes the impact of amortization from acquired intangibles and provides a clearer picture of operating performance. Additionally, investors should adjust for the $1.7B cash pile and the legacy asbestos liabilities, which are not captured in EV/EBITDA. Using a normalized EBITDA that excludes acquisition-related costs would give a more accurate valuation.