Latest Ratios: P/E Ratio 43.8x · EV/EBITDA 32.7x · ROE 70.2%. (2014–2025 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 | $18.7B | $16.6B | $10.6B | $9.8B | $7.2B | $8.2B | $5.2B | $3.2B | $2.0B | $1.4B | $1.3B |
| Enterprise Value | $18.4B | $16.3B | $10.1B | $9.7B | $7.3B | $7.9B | $5.1B | $3.1B | $2.0B | $1.6B | $1.4B |
| P/E Ratio → | 43.80 | 36.76 | 26.30 | 34.52 | 29.18 | 45.25 | 36.25 | 31.48 | 26.87 | 37.00 | 97.49 |
| P/S Ratio | 7.38 | 6.55 | 5.04 | 5.18 | 4.90 | 7.18 | 5.67 | 3.67 | 2.77 | 3.31 | 3.11 |
| P/B Ratio | 43.04 | 36.12 | 12.88 | 17.46 | 18.51 | 8.61 | 6.51 | 4.35 | 3.31 | 2.87 | 2.15 |
| P/FCF | 27.39 | 24.32 | 18.59 | 24.60 | 20.37 | 34.90 | 23.09 | 17.17 | 13.90 | 16.98 | 16.76 |
| P/OCF | 26.19 | 23.25 | 17.47 | 22.52 | 18.43 | 31.16 | 20.29 | 15.65 | 12.48 | 14.83 | 14.28 |
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 | — | 6.46 | 4.80 | 5.12 | 5.01 | 6.89 | 5.49 | 3.57 | 2.85 | 3.76 | 3.41 |
| EV / EBITDA | 32.74 | 29.02 | 21.25 | 26.59 | 24.29 | 35.83 | 27.26 | 20.42 | 14.37 | 14.73 | 12.99 |
| EV / EBIT | 34.46 | 30.12 | 21.26 | 28.73 | 25.59 | 38.99 | 30.45 | 24.14 | 19.89 | 25.42 | 34.76 |
| EV / FCF | — | 23.96 | 17.68 | 24.34 | 20.82 | 33.50 | 22.37 | 16.70 | 14.30 | 19.27 | 18.38 |
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 | 30.1% | 30.1% | 31.1% | 27.8% | 29.6% | 28.7% | 30.1% | 28.5% | 30.6% | 40.1% | 40.8% |
| Operating Margin | 21.1% | 21.1% | 21.2% | 17.9% | 19.1% | 17.4% | 18.0% | 14.8% | 14.3% | 14.9% | 12.5% |
| Net Profit Margin | 17.8% | 17.8% | 19.2% | 15.0% | 16.8% | 15.9% | 15.7% | 11.7% | 10.4% | 9.0% | 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 | 70.2% | 70.2% | 58.4% | 59.8% | 36.6% | 20.7% | 19.0% | 15.3% | 13.4% | 7.0% | 2.6% |
| ROA | 22.1% | 22.1% | 21.5% | 18.8% | 16.3% | 11.9% | 11.5% | 9.5% | 7.6% | 4.1% | 1.4% |
| ROIC | 154.9% | 154.9% | 88.1% | 50.4% | 35.7% | 23.5% | 19.5% | 14.8% | 11.3% | 6.8% | 5.2% |
| ROCE | 65.7% | 65.7% | 51.7% | 52.6% | 33.7% | 19.3% | 19.1% | 16.8% | 13.8% | 8.3% | 6.3% |
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 | 0.55 | 0.55 | 0.18 | 0.25 | 0.49 | 0.14 | 0.14 | 0.06 | 0.14 | 0.44 | 0.27 |
| Debt / EBITDA | 0.44 | 0.44 | 0.31 | 0.39 | 0.63 | 0.60 | 0.62 | 0.30 | 0.57 | 1.99 | 1.48 |
| Net Debt / Equity | — | -0.54 | -0.63 | -0.18 | 0.42 | -0.35 | -0.20 | -0.12 | 0.10 | 0.39 | 0.21 |
| Net Debt / EBITDA | -0.44 | -0.44 | -1.09 | -0.28 | 0.53 | -1.50 | -0.87 | -0.58 | 0.40 | 1.75 | 1.14 |
| Debt / FCF | — | -0.36 | -0.91 | -0.26 | 0.46 | -1.41 | -0.72 | -0.47 | 0.40 | 2.29 | 1.62 |
| Interest Coverage | — | — | — | 688.87 | 98.37 | 1923.40 | — | 81.16 | 12.39 | 8.53 | 2.13 |
Net cash position: cash ($497M) exceeds total debt ($250M)
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 | 0.74 | 0.74 | 0.93 | 0.64 | 0.42 | 1.24 | 1.08 | 0.92 | 0.69 | 0.67 | 0.79 |
| Quick Ratio | 0.74 | 0.74 | 0.93 | 0.64 | 0.42 | 1.24 | 1.08 | 0.92 | 0.69 | 0.67 | 0.79 |
| Cash Ratio | 0.37 | 0.37 | 0.61 | 0.27 | 0.04 | 0.83 | 0.63 | 0.38 | 0.09 | 0.14 | 0.22 |
| Asset Turnover | — | 1.28 | 1.00 | 1.14 | 1.08 | 0.69 | 0.67 | 0.75 | 0.73 | 0.46 | 0.43 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 69865.57 | 37351.86 | 809.97 |
| Days Sales Outstanding | — | 58.00 | 51.30 | 57.75 | 63.35 | 59.57 | 63.45 | 65.99 | 69.13 | 69.53 | 69.06 |
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 | 2.3% | 2.7% | 3.8% | 2.9% | 3.4% | 2.2% | 2.8% | 3.2% | 3.7% | 2.7% | 1.0% |
| FCF Yield | 3.7% | 4.1% | 5.4% | 4.1% | 4.9% | 2.9% | 4.3% | 5.8% | 7.2% | 5.9% | 6.0% |
| Buyback Yield | 4.9% | 5.5% | 1.6% | 1.5% | 11.9% | 0.8% | 1.9% | 0.0% | 0.0% | 10.8% | 0.0% |
| Total Shareholder Yield | 4.9% | 5.5% | 1.6% | 1.5% | 11.9% | 0.8% | 1.9% | 0.0% | 0.0% | 10.8% | 0.0% |
| Shares Outstanding | — | $30M | $32M | $32M | $34M | $38M | $38M | $38M | $37M | $40M | $36M |
Includes 30+ ratios · 12 years · Updated daily
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Quick answers to the most common questions about buying MEDP stock.
Medpace Holdings, Inc.'s current P/E ratio is 43.8x. The historical average is 40.1x. This places it at the 80th percentile of its historical range.
Medpace Holdings, Inc.'s current EV/EBITDA is 32.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 22.7x.
Medpace Holdings, Inc.'s return on equity (ROE) is 70.2%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 24.8%.
Based on historical data, Medpace Holdings, Inc. is trading at a P/E of 43.8x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Medpace Holdings, Inc. has 30.1% gross margin and 21.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Medpace Holdings, Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Book-to-bill below 1.0
Metrics are mathematically derived from official filings.
Margin Resilience Amid Pass-Through Mix
Gross margin contracted from 33.2% in Q4 2024 to 28.5% in Q2 2026, per reported financials, yet operating margin held near 20.8%, indicating disciplined cost control despite revenue mix shifts.
The gross margin decline appears driven by higher pass-through costs, which carry zero margin, rather than a deterioration in core service pricing. Operating margin stability, with Q2 2026 at 20.8% versus 20.4% a year earlier, suggests the company is effectively managing labor costs despite inflationary pressures. Net margin of 17.2% in Q2 2026, down from 21.8% in Q4 2024, reflects the impact of lower gross margins and a higher effective tax rate, but the underlying earning power remains intact.
Exceptional ROIC Driven by Asset-Light Model
ROIC surged from 18.2% in Q1 2024 to 184.8% in Q2 2026, per reported figures, reflecting a minimal capital base and strong cash generation, though the metric is distorted by negative equity.
The dramatic rise in ROIC is primarily a function of the shrinking equity base, which fell from $881.4M to $433.9M over the period due to aggressive buybacks, rather than a proportional increase in operating profits. ROE followed a similar pattern, spiking to 47.7% in Q3 2025 before normalizing to 23.5% in Q2 2026, indicating that returns are being amplified by financial engineering. Investors should interpret these metrics with caution, as the negative retained earnings balance of -$511.4M makes traditional return calculations less meaningful.
Working Capital Efficiency Under Pressure
Asset turnover improved from 0.26x in Q4 2024 to 0.34x in Q2 2026, per reported data, while DSO rose from 50 to 54 days, suggesting slower collections but still efficient use of assets.
The increase in DSO from 50 to 54 days over the past year may indicate that clients are taking longer to pay, potentially reflecting tighter cash positions among small biotech customers. However, the asset turnover improvement, driven by revenue growth outpacing asset growth, suggests the company is generating more sales per dollar of assets. The cash conversion cycle remains negative due to minimal inventory and low DPO, which is typical for a service business, but the rising DSO warrants monitoring for potential collection issues.
Leverage Normalizes After Buyback Spike
Debt-to-equity fell from a peak of 0.87x in Q2 2025 to 0.28x in Q2 2026, per reported figures, while D/EBITDA improved to 0.86x, indicating a conservative balance sheet despite aggressive capital returns.
The leverage spike in mid-2025 was driven by temporary debt used to fund share repurchases, which has since been paid down, restoring the company's historically low leverage profile. With D/EBITDA at 0.86x and no significant debt maturities, interest coverage remains comfortable, though the metric is not reported. The negative equity base, however, means that traditional leverage ratios understate the true financial risk, as the company has returned more capital to shareholders than it has retained.
Liquidity Rebuilds After Cash Deployment
Current ratio improved from 0.43x in Q2 2025 to 0.73x in Q2 2026, per reported balance sheet data, as cash surged from $46.3M to $502.7M, restoring a more comfortable liquidity buffer.
The sharp improvement in liquidity reflects a deliberate pause in buyback activity, allowing cash to accumulate on the balance sheet. Despite the current ratio remaining below 1.0x, the company's asset-light model and consistent operating cash flow generation reduce the risk of a liquidity crunch. The quick ratio of 0.73x, which excludes inventory, is nearly identical to the current ratio, indicating that the company has no inventory dependence and can meet short-term obligations from cash and receivables alone.
Misapplied ROIC in a Negative Equity Context
ROIC of 184.8% in Q2 2026, per reported figures, is commonly cited as evidence of exceptional capital efficiency, but it is distorted by a negative equity base from buybacks.
Traditional ROIC calculations divide by invested capital, which becomes artificially small or negative when retained earnings are depleted by share repurchases, inflating the metric beyond its economic reality. A more meaningful measure for Medpace would be cash return on cash invested, or simply FCF yield, which at 25.08x P/FCF reflects a more grounded valuation. Investors should focus on operating margin stability and backlog conversion rather than ROIC, which is not comparable to peers with positive equity bases.