Latest Ratios: P/E Ratio 82.3x · EV/EBITDA 37.7x · ROE 6.4%. (2022–2025 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 |
|---|---|---|---|---|---|
| Market Cap | $5.8B | $6.5B | $6.8B | — | — |
| Enterprise Value | $6.4B | $7.2B | $7.0B | — | — |
| P/E Ratio → | 82.29 | 90.67 | 307.96 | — | — |
| P/S Ratio | 11.64 | 13.14 | 16.82 | — | — |
| P/B Ratio | 5.04 | 5.55 | 6.23 | — | — |
| P/FCF | 58.22 | 65.70 | 146.99 | — | — |
| P/OCF | 51.47 | 58.08 | 123.27 | — | — |
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 |
|---|---|---|---|---|---|
| EV / Revenue | — | 14.43 | 17.40 | — | — |
| EV / EBITDA | 37.70 | 42.06 | 53.62 | — | — |
| EV / EBIT | 53.83 | 67.40 | 86.34 | — | — |
| EV / FCF | — | 72.15 | 152.03 | — | — |
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 |
|---|---|---|---|---|---|
| Gross Margin | 52.7% | 52.7% | 49.4% | 48.6% | 46.6% |
| Operating Margin | 24.0% | 24.0% | 21.8% | 21.9% | 16.5% |
| Net Profit Margin | 14.5% | 14.5% | 5.5% | -1.5% | -1.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| ROE | 6.4% | 6.4% | 3.0% | -1.1% | -0.6% |
| ROA | 4.1% | 4.1% | 1.8% | -0.5% | -0.2% |
| ROIC | 5.7% | 5.7% | 5.8% | 5.7% | 3.4% |
| ROCE | 7.1% | 7.1% | 7.3% | 7.1% | 4.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Debt / Equity | 0.62 | 0.62 | 0.26 | 1.30 | 1.18 |
| Debt / EBITDA | 4.26 | 4.26 | 2.19 | 5.07 | 6.76 |
| Net Debt / Equity | — | 0.55 | 0.21 | 1.25 | 1.09 |
| Net Debt / EBITDA | 3.76 | 3.76 | 1.78 | 4.87 | 6.28 |
| Debt / FCF | — | 6.45 | 5.04 | 771.71 | 86.38 |
| Interest Coverage | 4.14 | 4.14 | 1.56 | 1.04 | 0.94 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Current Ratio | 4.70 | 4.70 | 5.28 | 3.32 | 3.90 |
| Quick Ratio | 2.98 | 2.98 | 3.06 | 1.80 | 2.31 |
| Cash Ratio | 1.34 | 1.34 | 1.29 | 0.42 | 0.92 |
| Asset Turnover | — | 0.24 | 0.28 | 0.30 | 0.24 |
| Inventory Turnover | 2.15 | 2.15 | 2.20 | 2.09 | 2.10 |
| Days Sales Outstanding | — | 68.78 | 58.41 | 68.29 | 63.33 |
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 |
|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Earnings Yield | 1.2% | 1.1% | 0.3% | — | — |
| FCF Yield | 1.7% | 1.5% | 0.7% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $96M | $92M | $88M | $77M |
Includes 30+ ratios · 4 years · Updated daily
Live VCP patterns, Cup & Handle overlays, support/resistance, and AI trade plans.
High-probability breakout stocks crossing their pivot across 5 pattern engines.
DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying LOAR stock.
Loar Holdings Inc.'s current P/E ratio is 82.3x. The historical average is 90.7x.
Loar Holdings Inc.'s current EV/EBITDA is 37.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 47.8x.
Loar Holdings Inc.'s return on equity (ROE) is 6.4%. The historical average is 1.9%.
Based on historical data, Loar Holdings Inc. is trading at a P/E of 82.3x. Compare with industry peers and growth rates for a complete picture.
Loar Holdings Inc. has 52.7% gross margin and 24.0% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Loar Holdings Inc.'s Debt/EBITDA ratio is 4.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
EPS miss vs raised guidance
Metrics are mathematically derived from official filings.
Premium Pricing for Scarcity Value
LOAR trades at 103.2x trailing P/E and 46.3x EV/EBITDA, far above peers like TransDigm at 39.2x and 21.5x, per market data, implying expectations of sustained high growth and margin durability.
The valuation gap suggests the market is pricing in LOAR's ability to replicate TransDigm's roll-up model at a smaller scale, where each acquisition can be more accretive. However, the forward P/E of 59.3x still implies significant earnings growth, which may be optimistic given the recent EPS miss. Investors should monitor whether the premium is justified by consistent execution or if it reflects a scarcity premium for a newly public pure-play aerospace components aggregator.
Margin Resilience Amidst Expansion
Gross margin improved to 53.2% in 2026Q2 from 47.7% a year earlier, while operating margin held at 24.4%, as per quarterly filings, indicating pricing power and cost control despite rapid growth.
The stability of operating margin near 24% despite a 39.4% revenue surge suggests that integration costs are being absorbed, but the net margin of 9.8% in 2026Q2 is suppressed by non-cash amortization and interest expense. Adjusted for these items, cash-based earnings power appears stronger, as evidenced by FCF margin of 18.8%. The recent EPS miss versus consensus may reflect one-time charges, but the trend in conversion efficiency warrants close monitoring.
ROIC Suppressed by Acquisition Intangibles
ROIC has hovered around 1.5% over the past year, as reported in financial statements, far below peers like TransDigm's 20.9%, reflecting the heavy goodwill and intangible asset base from acquisitions.
The low ROIC is largely a function of the large purchase price allocations to intangibles, which inflate the invested capital base. On an adjusted basis, excluding goodwill, the returns would be significantly higher, but the current figure suggests that the company is still in the early stages of generating returns on its acquisition investments. As acquired businesses mature and amortization declines, ROIC may improve, but investors should track whether incremental acquisitions continue to be value-accretive.
Working Capital Drag from Growth
Cash conversion cycle extended to 169 days in 2026Q2, up from 170 days a year earlier, with DIO at 142 days and DSO at 58 days, as per quarterly data, indicating inventory build-up to support aftermarket demand.
The high DIO reflects the need to stock a wide range of proprietary parts for aftermarket sales, which is a structural feature of the business. However, the CCC has remained elevated, and working capital changes have consistently consumed cash, as seen in the -$13.6M outflow in 2026Q2. This suggests that rapid growth is tying up cash in inventory and receivables, which could pressure liquidity if growth slows. Management's ability to manage inventory levels while maintaining high service levels will be key.
Leverage Rises to Fund Roll-Up
Debt-to-equity climbed to 0.80 in 2026Q2 from 0.26 a year earlier, with D/EBITDA at 15.6x, as per balance sheet data, reflecting aggressive acquisition financing that raises refinancing risk.
The leverage increase is a direct result of the $1.1B deployed into acquisitions since 2024Q1, and interest coverage has fallen to 2.09x in 2026Q2 from 4.83x in 2025Q3. While the current ratio of 4.91 provides ample short-term liquidity, the high D/EBITDA suggests that the company is highly levered relative to its cash flow. If earnings growth stalls or interest rates rise, the debt service burden could become more onerous, and covenant headroom may shrink. Investors should monitor the pace of deleveraging as acquisitions integrate.
Strong Liquidity Buffer Despite Debt
Current ratio stands at 4.91 and quick ratio at 3.24 in 2026Q2, with cash of $122.4M, as reported in financial statements, providing a robust cushion against short-term obligations.
The liquidity position is comfortable, largely due to the IPO proceeds and the asset-light model, which requires minimal capital expenditure. However, the high inventory levels (DIO of 142 days) mean that the quick ratio is a more accurate measure of immediate liquidity, and it remains strong at 3.24. Under a severe stress scenario, such as a sharp downturn in flight hours, the company could draw on its cash and revolver, but the high leverage could limit additional borrowing capacity. The current liquidity appears adequate to weather near-term volatility.
Valuation and Margin Gap vs. Peers
LOAR's gross margin of 53.2% and operating margin of 24.4% in 2026Q2 are comparable to TransDigm's 23.5% net margin, but its ROIC of 1.5% lags peers, as per reported figures.
The margin profile is in line with the aerospace components peer group, but the return on capital is significantly lower due to the recent acquisition spree and the associated intangible amortization. This gap may narrow as the acquired businesses mature, but it also highlights the risk that LOAR is paying full prices for smaller targets. The valuation premium over peers like Curtiss-Wright and Leonardo DRS suggests that the market expects LOAR to achieve TransDigm-like returns over time, which is not yet evident in the financials.
Misapplied ROIC in Roll-Up Models
ROIC is commonly misapplied to LOAR because it penalizes the company for acquisition-related intangibles, obscuring the underlying cash returns, as per financial data; adjusted ROIC excluding goodwill would be more informative.
For serial acquirers like LOAR, the standard ROIC calculation includes the full purchase price, which is heavily weighted toward goodwill and intangibles that may not reflect the true economic capital employed. A more appropriate metric would be ROIC on a cash-adjusted basis, or the ratio of after-tax operating income to tangible capital employed, which would better capture the returns on the acquired operating assets. Investors should also consider the incremental ROIC on recent acquisitions to assess whether the roll-up strategy is creating value. The current ROIC of 1.5% understates the potential earning power of the business, and relying on it alone could lead to an overly bearish view.