Latest Ratios: P/E Ratio 15.1x · EV/EBITDA 9.6x · ROE 27.2%. (2000–2025 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 | $8.9B | $8.8B | $7.0B | $6.2B | $6.7B | $10.5B | $7.3B | $6.9B | — | — | — |
| Enterprise Value | $10.5B | $10.4B | $8.5B | $8.0B | $8.3B | $11.9B | $8.5B | $6.9B | — | — | — |
| P/E Ratio → | 15.15 | 15.19 | 33.58 | 24.98 | 11.72 | 18.94 | — | 17.30 | — | — | — |
| P/S Ratio | 1.34 | 1.40 | 1.11 | 1.01 | 1.08 | 1.82 | 1.64 | 1.19 | — | — | — |
| P/B Ratio | 4.01 | 3.86 | 3.57 | 3.04 | 3.51 | 6.29 | 5.62 | 4.36 | — | — | — |
| P/FCF | 13.58 | 27.16 | 10.47 | 51.05 | — | 18.37 | 21.54 | 28.93 | — | — | — |
| P/OCF | 16.40 | 16.14 | 7.82 | 14.29 | 29.27 | 14.21 | 15.56 | 16.62 | — | — | — |
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 | — | 1.65 | 1.35 | 1.30 | 1.35 | 2.07 | 1.90 | 1.20 | — | — | — |
| EV / EBITDA | 9.60 | 11.71 | 18.69 | 15.43 | 10.35 | 14.36 | 149.43 | 10.04 | — | — | — |
| EV / EBIT | 15.49 | 15.17 | 32.78 | 25.73 | 12.35 | 18.23 | — | 12.75 | — | — | — |
| EV / FCF | — | 31.93 | 12.74 | 65.66 | — | 20.88 | 24.97 | 29.27 | — | — | — |
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 | 61.7% | 61.7% | 60.0% | 56.9% | 57.5% | 58.1% | 52.8% | 53.8% | 53.8% | 52.3% | 51.2% |
| Operating Margin | 10.8% | 10.8% | 4.2% | 5.7% | 10.5% | 11.9% | -1.9% | 9.8% | 9.7% | 9.8% | 10.2% |
| Net Profit Margin | 9.2% | 9.2% | 3.3% | 4.0% | 9.2% | 9.6% | -2.9% | 6.8% | 5.1% | 5.7% | 6.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 27.2% | 27.2% | 10.5% | 12.6% | 31.9% | 37.3% | -8.9% | 32.5% | 33.6% | 39.6% | 58.7% |
| ROA | 8.7% | 8.7% | 3.4% | 4.1% | 9.5% | 9.6% | -2.6% | 10.2% | 8.2% | 8.9% | 9.9% |
| ROIC | 13.9% | 13.9% | 5.4% | 7.2% | 14.6% | 18.5% | -3.1% | 29.9% | 32.6% | 28.1% | 27.5% |
| ROCE | 14.8% | 14.8% | 6.1% | 8.5% | 16.0% | 16.9% | -2.4% | 20.8% | 22.3% | 20.4% | 21.7% |
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 | 1.01 | 1.01 | 1.12 | 1.07 | 1.10 | 1.35 | 2.05 | 0.65 | 1.23 | 1.32 | 1.79 |
| Debt / EBITDA | 2.61 | 2.61 | 4.84 | 4.20 | 2.60 | 2.70 | 46.93 | 1.47 | 1.59 | 1.83 | 1.87 |
| Net Debt / Equity | — | 0.68 | 0.77 | 0.87 | 0.87 | 0.86 | 0.89 | 0.05 | 0.40 | 0.55 | 1.16 |
| Net Debt / EBITDA | 1.75 | 1.75 | 3.33 | 3.44 | 2.06 | 1.73 | 20.51 | 0.12 | 0.51 | 0.77 | 1.21 |
| Debt / FCF | — | 4.77 | 2.27 | 14.62 | — | 2.51 | 3.43 | 0.34 | 1.30 | 1.13 | 3.36 |
| Interest Coverage | 14.05 | 14.05 | 6.24 | 6.78 | 26.28 | 8.96 | -1.31 | 8.21 | 10.04 | 6.08 | 6.57 |
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 | 1.55 | 1.55 | 1.42 | 1.48 | 1.43 | 1.45 | 2.02 | 2.46 | 1.97 | 2.27 | 2.21 |
| Quick Ratio | 0.94 | 0.94 | 0.86 | 0.75 | 0.71 | 0.97 | 1.49 | 1.70 | 1.21 | 1.41 | 1.27 |
| Cash Ratio | 0.42 | 0.42 | 0.34 | 0.22 | 0.25 | 0.48 | 1.03 | 0.87 | 0.61 | 0.72 | 0.49 |
| Asset Turnover | — | 0.92 | 1.00 | 1.02 | 1.02 | 0.98 | 0.79 | 1.36 | 1.57 | 1.46 | 1.52 |
| Inventory Turnover | 1.94 | 1.94 | 2.24 | 2.06 | 1.85 | 2.69 | 2.57 | 3.01 | 2.92 | 3.08 | 3.10 |
| Days Sales Outstanding | — | 45.01 | 40.78 | 44.46 | 41.24 | 44.81 | 44.28 | 49.58 | 34.97 | 36.13 | 38.40 |
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 | 2.3% | 2.4% | 2.8% | 3.1% | 2.6% | 1.0% | 0.9% | 1.7% | — | — | — |
| Payout Ratio | 36.8% | 36.8% | 94.3% | 76.3% | 30.6% | 18.9% | — | 28.9% | 31.8% | 24.9% | 20.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.6% | 6.6% | 3.0% | 4.0% | 8.5% | 5.3% | — | 5.8% | — | — | — |
| FCF Yield | 7.4% | 3.7% | 9.5% | 2.0% | — | 5.4% | 4.6% | 3.5% | — | — | — |
| Buyback Yield | 1.7% | 1.7% | 1.3% | 0.1% | 2.6% | 0.8% | 0.8% | 0.6% | — | — | — |
| Total Shareholder Yield | 4.0% | 4.1% | 4.1% | 3.2% | 5.2% | 1.8% | 1.6% | 2.3% | — | — | — |
| Shares Outstanding | — | $400M | $402M | $402M | $404M | $410M | $397M | $408M | $393M | $393M | $385M |
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying LEVI stock.
Levi Strauss & Co.'s current P/E ratio is 15.1x. The historical average is 20.3x. This places it at the 17th percentile of its historical range.
Levi Strauss & Co.'s current EV/EBITDA is 9.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.4x.
Levi Strauss & Co.'s return on equity (ROE) is 27.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 34.6%.
Based on historical data, Levi Strauss & Co. is trading at a P/E of 15.1x. This is at the 17th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Levi Strauss & Co.'s current dividend yield is 2.33% with a payout ratio of 36.8%.
Levi Strauss & Co. has 61.7% gross margin and 10.8% operating margin. Operating margin between 10-20% is typical for established companies.
Levi Strauss & Co.'s Debt/EBITDA ratio is 2.6x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
ROIC below cost of capital
Metrics are mathematically derived from official filings.
Deep Discount Despite Margin Expansion
According to current market pricing data, Levi Strauss trades at 13.46x TTM earnings and 10.39x EV/EBITDA, materially below Ralph Lauren's 23.90x and V.F. Corporation's 22.47x, despite operating margins that have expanded from 1.5% to 13.8% over ten quarters.
The forward P/E of 13.34x is nearly identical to the trailing figure, which implies the market expects essentially no earnings acceleration and is pricing LEVI as a mature, low-growth apparel holding rather than a company undergoing a DTC-driven margin transformation. The notably higher P/FCF of 23.54x versus the P/E of 13.46x suggests investors are discounting the reported earnings stream for its volatility, as free cash flow margins have oscillated between -2.6% and 16.4% over ten quarters despite operating margin stability above 10%. The 2.7% dividend yield provides a partial floor, but the valuation discount likely reflects the market's skepticism that the current margin trajectory is sustainable without corresponding revenue reacceleration.
Capital Returns Fail to Clear Hurdle Rates
Despite gross margin expansion to 66.2% in Q3 2026, Levi Strauss's ROIC of 4.3% remains well below the cost of capital, based on the company's reported quarterly figures, indicating that the capital intensity of its retail and wholesale operations is suppressing returns on invested capital.
ROIC improved from 0.4% in Q2 2024 to 4.3% in Q3 2026, a meaningful recovery from the trough but still below any reasonable apparel-sector hurdle rate of 8–12%. The wide gap between ROE of 27.2% and ROIC of 4.3% indicates that financial leverage at approximately 0.97x debt-to-equity is amplifying equity returns rather than reflecting superior operating efficiency. Asset turnover declining from 0.29x in Q4 2024 to 0.24x in Q3 2026 suggests the fixed-asset build associated with DTC retail expansion may be diluting capital productivity even as it supports gross margin gains.
Inventory Build Extends Cash Conversion Cycle
As reported in Levi Strauss's quarterly financial statements, days inventory outstanding reached 202 days in Q3 2026, the highest level in five quarters, while the cash conversion cycle extended to 132 days, suggesting inventory build-up may precede markdown pressure if demand does not accelerate.
DIO rose from 164 days in Q4 2024 to 202 days, a roughly 23% increase that coincides with the strategic shift toward DTC retail, which requires higher inventory stocking at the store and e-commerce fulfillment level relative to wholesale distribution. Days sales outstanding at 38 days remains stable across all ten quarters, indicating receivables management is not a concern and that any working capital strain is concentrated in inventory. Days payable outstanding declined from 104 days in Q2 2025 to 107 days in Q3 2026 after dipping into the 70s in Q1 2026, suggesting the company may be retaining less supplier financing flexibility than at prior points in the cycle.
Liquidity Cushion Strengthens Through Distributions
Based on Levi Strauss's reported balance sheet data, the current ratio improved from 1.41 to 1.63 and the quick ratio rose from 0.76 to 1.00 over ten quarters, indicating a strengthening liquidity position that has absorbed sustained shareholder distributions.
The quick ratio reaching parity at 1.00 in Q3 2026 represents a meaningful threshold, as it suggests the company can meet short-term obligations without depending on inventory liquidation, though the elevated DIO of 202 days makes inventory a substantial component of the current asset base. Interest coverage of 17.23x in Q3 2026 provides substantial debt-service cushion, and the debt-to-equity ratio declined from 1.18x to 0.97x over the period, reflecting ongoing balance sheet deleveraging. Under a severe demand contraction scenario, the liquidity position appears to have held up well during prior periods of negative free cash flow, including Q3 2025's -2.6% FCF margin, which suggests the company has adequate near-term resilience.
Capital Efficiency Lags Apparel Peer Group
Among comparable apparel companies, Levi Strauss's 4.3% ROIC and 10.5% net margin rank below Ralph Lauren's 24.7% ROIC and 11.6% net margin, per peer data compilation, yet its P/E of 13.46x trades at a significant discount to RL's 23.90x.
LEVI's ROIC of 4.3% is the lowest in the peer set excluding Hanesbrands' distorted 4.5%, substantially below V.F. Corporation's 7.3%, Guess's 7.8%, and PVH's 6.1%, indicating that despite superior gross margins of 66.2%, the company generates less economic value per dollar of capital employed than nearly all listed peers. The valuation discount to Ralph Lauren appears partly justified by the ROIC gap, as RL's 24.7% ROIC supports its 7.92x P/B versus LEVI's 3.42x. LEVI's leverage at 0.97x D/E is more conservative than V.F. Corporation's 2.69x and Guess's 2.58x, providing a balance sheet advantage that may partially offset the lower return profile.
P/E Obscures Below-Cost-of-Capital Returns
The most commonly misapplied ratio for Levi Strauss is the price-to-earnings multiple, which presents a 13.46x TTM P/E as inexpensive while ignoring that reported ROIC of 4.3% remains below any reasonable cost of capital estimate, per the company's quarterly disclosures.
The apparent valuation discount versus peers like Ralph Lauren at 23.90x P/E may reflect the market's recognition that LEVI's 4.3% ROIC does not support durable equity-value creation at the current capital structure, rendering the low P/E a potential value trap rather than an outright bargain. A more appropriate framework would compare EV/EBITDA adjusted for the capital intensity of the DTC store base against an estimated WACC of 8–10%, which suggests LEVI has yet to earn an economic profit on its invested capital despite operating margin expansion. Investors should also recognize that the headline ROE of 27.2% is leverage-dependent, with approximately 1x debt-to-equity amplifying equity returns rather than reflecting superior operating performance, and that comparing LEVI's P/E directly to lighter-asset peers without adjusting for asset intensity could materially understate the true cost of the company's retail footprint.