Latest Ratios: P/E Ratio -15.8x · EV/EBITDA 4.2x · ROE -11.9%. (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 | $4.7B | $10.8B | — | — | — | — | — | — | — | — | — |
| Enterprise Value | $2.3B | $8.4B | — | — | — | — | — | — | — | — | — |
| P/E Ratio → | -15.84 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 1.35 | 3.07 | — | — | — | — | — | — | — | — | — |
| P/B Ratio | 1.73 | 4.01 | — | — | — | — | — | — | — | — | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — | — |
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 | — | 2.39 | — | — | — | — | — | — | — | — | — |
| EV / EBITDA | 4.16 | 14.86 | — | — | — | — | — | — | — | — | — |
| EV / EBIT | 5.34 | 19.68 | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
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 | 54.3% | 54.3% | 77.7% | 75.4% | 72.5% | 63.2% | 71.7% | 70.4% | 82.7% | 84.3% | 83.8% |
| Operating Margin | 12.5% | 12.5% | -4.5% | -14.7% | -51.9% | -45.0% | -14.0% | -13.1% | 2.6% | 11.6% | 4.7% |
| Net Profit Margin | -8.4% | -8.4% | 0.1% | -11.3% | -55.0% | -47.9% | -11.5% | -10.9% | 1.7% | 7.7% | 3.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -11.9% | -11.9% | 0.1% | -11.0% | -41.3% | -34.8% | -11.1% | -11.7% | 2.2% | 10.2% | 4.1% |
| ROA | -1.8% | -1.8% | 0.0% | -1.9% | -8.7% | -8.0% | -2.6% | -2.5% | 0.4% | 2.3% | 0.9% |
| ROIC | 587.9% | 587.9% | -218.7% | -28.6% | -40.1% | -25.2% | -6.4% | -5.1% | 1.5% | 7.5% | 3.3% |
| ROCE | 10.0% | 10.0% | -3.0% | -7.3% | -17.1% | -14.7% | -6.2% | -5.5% | 1.2% | 6.0% | 2.4% |
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 | 0.53 | 0.53 | 0.35 | 0.21 | 0.27 | 0.47 | 0.56 | 1.22 | 0.83 | 0.63 | 0.38 |
| Debt / EBITDA | 2.53 | 2.53 | 11.63 | — | — | — | — | — | 17.79 | 4.68 | 4.87 |
| Net Debt / Equity | — | -0.89 | -1.09 | -0.87 | -0.39 | -0.17 | 0.21 | 1.21 | 0.83 | 0.63 | 0.38 |
| Net Debt / EBITDA | -4.21 | -4.21 | -36.06 | — | — | — | — | — | 17.79 | 4.68 | 4.87 |
| Debt / FCF | — | — | -4.52 | -2.65 | -3.92 | — | 1.88 | — | 5.98 | — | 2.57 |
| Interest Coverage | 0.64 | 0.64 | 0.47 | -0.34 | -5.78 | — | — | — | — | — | — |
Net cash position: cash ($3.8B) exceeds total debt ($1.4B)
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 | 1.07 | 1.07 | 1.21 | 1.13 | 1.55 | 1.87 | 1.81 | 1.86 | 2.05 | 2.17 | 2.12 |
| Quick Ratio | 1.07 | 1.07 | 1.21 | 1.13 | 1.55 | 1.87 | 1.81 | 1.86 | 2.05 | 2.17 | 2.12 |
| Cash Ratio | 0.26 | 0.26 | 0.39 | 0.24 | 0.38 | 0.50 | 0.33 | 0.14 | 0.24 | 0.23 | 0.19 |
| Asset Turnover | — | 0.19 | 0.19 | 0.16 | 0.16 | 0.14 | 0.18 | 0.20 | 0.21 | 0.24 | 0.29 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 1229.67 | 1029.58 | 1492.01 | 1410.70 | — | — | — | — | — | — |
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 | — | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $372M | $364M | $362M | $336M | $0 | $0 | $0 | $0 | $0 | $0 |
Includes 30+ ratios · 10 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying KLAR stock.
Klarna Group plc's current P/E ratio is -15.8x. This places it at the 50th percentile of its historical range.
Klarna Group plc's current EV/EBITDA is 4.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.9x.
Klarna Group plc's return on equity (ROE) is -11.9%. The historical average is -10.5%.
Based on historical data, Klarna Group plc is trading at a P/E of -15.8x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Klarna Group plc has 54.3% gross margin and 12.5% operating margin. Operating margin between 10-20% is typical for established companies.
Klarna Group plc's Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Credit cycle vulnerability
Distorted Multiples Mask Profitability Shift
The negative TTM P/E of -17.30 reflects sustained losses, but the forward P/E of 1277.57 implies analysts expect a dramatic earnings turnaround, as reported in the latest valuation data. This suggests the market is pricing in a significant inflection point.
The EV/EBITDA of 4.94 appears low for a high-growth fintech, but this likely reflects the current low EBITDA base relative to enterprise value, creating a potentially misleading valuation signal. The P/S of 1.47 is reasonable given 31.61% revenue growth, but a meaningful re-rating is contingent on demonstrating sustainable profitability.
Gross Margin Volatility Signals Credit Risk
Klarna's gross margin swung from a low of -13.5% in Q4 2023 to 60.1% in Q2 2026, indicating extreme sensitivity to credit loss provisioning and revenue mix changes, according to the reported financial data. This highlights the core operational challenge.
The recent operating margin of 2.6% in Q2 2026 marks a significant improvement from -23.9% in Q1 2023, suggesting operating leverage is beginning to take hold as the company scales. However, the net margin of just 0.4% remains minimal, and the sustainability of these gains depends on controlling credit costs and shifting the revenue mix toward higher-margin services.
ROIC Positive but Volatile Amid Expansion
ROIC turned positive at 1.4% in Q2 2026, up from -15.6% in Q4 2023, suggesting the company's investments are beginning to generate returns, though the trend remains unstable based on the historical ratios. This improvement is a critical step toward value creation.
The ROE of 0.2% in Q2 2026, while a stark improvement from -5.2% in Q1 2023, is still below the likely cost of equity, indicating the company is not yet covering its capital costs. The volatility in returns suggests Klarna is in a transitional phase where scaling revenues and managing credit losses are paramount for establishing a durable compounding cycle.
Current Ratio Below 1 Raises Funding Concerns
The current ratio of 0.86 in Q2 2026, down from 1.03 in the prior quarter, indicates that Klarna's near-term liabilities exceed its liquid assets, a position that warrants monitoring given the recent cash burn trends noted in the cash flow analysis.
The quick ratio of 0.86, matching the current ratio, confirms minimal inventory reliance, typical for a fintech. A ratio below 1 implies the company is reliant on continuous deposit inflows or external funding to meet obligations, which introduces refinancing risk if market conditions or investor sentiment deteriorate.
Profitability Lags High-ROIC Peer Sezzle
Compared to peer Sezzle, which reports a 29.6% net margin and 52.7% ROIC, Klarna's metrics appear significantly weaker, though its larger scale and ecosystem may justify a different valuation lens, as indicated by the peer comparison data.
Affirm's forward P/E and high P/B reflect a market premium for growth in the BNPL space, while Klarna's lower multiples suggest more conservative pricing due to profitability concerns. The key differentiator may be Klarna's attempt to build a broader retail media network, which peers lack, but this has not yet translated into superior returns on capital.
Misapplied Ratio: P/E in a Loss-Making Fintech
The P/E ratio is often misleadingly applied to Klarna due to its persistent losses, obscuring the underlying unit economics and growth trajectory; analysts should focus instead on EV/EBITDA and the net take rate after credit losses, as highlighted in the valuation data.
Using a negative P/E provides no useful valuation insight for a company in an investment phase. A more appropriate metric is the net take rate, calculated by subtracting credit loss provisions and funding costs from total revenue, which better reflects the core platform economics and the potential for the business model to become sustainably profitable.