Latest Ratios: P/E Ratio 2.3x · EV/EBITDA 15.0x · ROE 15.5%. (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 | $36.6B | $41.6B | $42.7B | — | — | — | — | — | — | — | — |
| Enterprise Value | $400.5B | $405.5B | $327.5B | — | — | — | — | — | — | — | — |
| P/E Ratio → | 2.29 | 2.56 | 3.33 | — | — | — | — | — | — | — | — |
| P/S Ratio | 0.55 | 0.63 | 0.74 | — | — | — | — | — | — | — | — |
| P/B Ratio | 0.33 | 0.37 | 0.41 | — | — | — | — | — | — | — | — |
| P/FCF | 0.79 | 0.90 | — | — | — | — | — | — | — | — | — |
| P/OCF | 0.75 | 0.85 | 31.36 | — | — | — | — | — | — | — | — |
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 | — | 6.15 | 5.68 | — | — | — | — | — | — | — | — |
| EV / EBITDA | 15.05 | 15.24 | 14.39 | — | — | — | — | — | — | — | — |
| EV / EBIT | 18.24 | 18.47 | 18.61 | — | — | — | — | — | — | — | — |
| EV / FCF | — | 8.80 | — | — | — | — | — | — | — | — | — |
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 | 99.5% | 99.5% | 99.5% | 99.0% | 99.4% | 100.0% | 98.3% | 99.6% | 100.0% | 100.0% | 100.0% |
| Operating Margin | 33.3% | 33.3% | 30.5% | 23.3% | 28.1% | 34.9% | 31.5% | 28.9% | 29.8% | 29.0% | 27.0% |
| Net Profit Margin | 25.6% | 25.6% | 23.2% | 17.9% | 22.0% | 26.6% | 24.0% | 23.2% | 23.2% | 17.0% | 18.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.5% | 15.5% | 13.0% | 9.0% | 10.6% | 14.3% | 11.8% | 11.0% | 10.9% | 7.9% | 7.8% |
| ROA | 1.3% | 1.3% | 1.1% | 0.8% | 0.9% | 1.3% | 1.1% | 1.0% | 1.0% | 0.7% | 0.7% |
| ROIC | 3.1% | 3.1% | 2.9% | 2.1% | 2.6% | 3.7% | 3.0% | 2.5% | 2.5% | 2.3% | 2.1% |
| ROCE | 3.3% | 3.3% | 3.8% | 2.7% | 3.4% | 4.8% | 3.9% | 3.4% | 3.4% | 3.2% | 2.9% |
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 | 4.22 | 4.22 | 3.42 | 3.39 | 3.05 | 2.86 | 2.75 | 3.16 | 3.06 | 3.32 | 3.26 |
| Debt / EBITDA | 17.87 | 17.87 | 15.84 | 21.10 | 17.07 | 12.78 | 15.59 | 18.76 | 19.03 | 21.41 | 23.78 |
| Net Debt / Equity | — | 3.23 | 2.70 | 2.80 | 2.13 | 2.05 | 2.09 | 2.56 | 2.42 | 2.73 | 2.70 |
| Net Debt / EBITDA | 13.67 | 13.67 | 12.51 | 17.45 | 11.94 | 9.15 | 11.88 | 15.19 | 15.06 | 17.61 | 19.68 |
| Debt / FCF | — | 7.89 | — | — | — | 6.90 | — | 5.44 | 36.22 | — | 177.92 |
| Interest Coverage | 0.45 | 0.45 | 0.39 | 0.31 | 1.15 | 14.40 | 3.75 | 0.91 | 1.11 | 1.83 | 2.67 |
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 | 1.17 | 1.17 | 0.66 | 0.72 | 0.72 | 0.77 | 0.80 | 0.76 | 0.79 | 0.72 | 0.73 |
| Quick Ratio | 1.17 | 1.17 | 0.66 | 0.72 | 0.72 | 0.77 | 0.80 | 0.76 | 0.79 | 0.72 | 0.73 |
| Cash Ratio | 0.20 | 0.20 | 0.10 | 0.08 | 0.12 | 0.11 | 0.09 | 0.09 | 0.10 | 0.09 | 0.09 |
| Asset Turnover | — | 0.05 | 0.05 | 0.04 | 0.04 | 0.05 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
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 | 17.7% | 15.8% | 14.4% | — | — | — | — | — | — | — | — |
| Payout Ratio | 39.1% | 39.1% | 45.8% | 63.4% | 49.0% | 27.7% | 24.9% | 29.1% | 27.1% | 34.1% | 29.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 43.6% | 39.0% | 30.0% | — | — | — | — | — | — | — | — |
| FCF Yield | 100.0% | 110.8% | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 15.9% | 14.0% | 9.8% | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 33.7% | 29.9% | 24.2% | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $1.6B | $1.6B | $1.6B | $1.7B | $1.8B | $1.6B | $1.6B | $1.7B | $1.8B | $1.9B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MS-PQ stock.
Morgan Stanley's current P/E ratio is 2.3x. The historical average is 2.9x.
Morgan Stanley's current EV/EBITDA is 15.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.8x.
Morgan Stanley's return on equity (ROE) is 15.5%. The historical average is 12.9%.
Based on historical data, Morgan Stanley is trading at a P/E of 2.3x. Compare with industry peers and growth rates for a complete picture.
Morgan Stanley's current dividend yield is 17.71% with a payout ratio of 39.1%.
Morgan Stanley has 99.5% gross margin and 33.3% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Morgan Stanley's Debt/EBITDA ratio is 17.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Regulatory and interest rate sensitivity
Metrics are mathematically derived from official filings.
Deep Discount Reflects Market Skepticism
According to current market data, Morgan Stanley trades at a P/E of 2.51 and a P/B of 0.36, which suggests that investors are heavily discounting the firm's earnings power compared to the broader financial sector and its own historical valuation averages over the past decade.
The extremely low P/E ratio implies that the market may be pricing in significant future earnings volatility or a permanent impairment of the firm's capital-light wealth management model. This valuation gap warrants further investigation into whether the market is misinterpreting the durability of fee-based income versus the cyclicality of institutional trading.
Capital Efficiency Remains Under Pressure
Based on reported figures, the firm's ROIC has remained modest, fluctuating between 0.4% and 1.0% over the last ten quarters, which indicates that the company is struggling to generate high returns on its expanding capital base despite its strategic pivot toward wealth management.
The low ROIC relative to peers suggests that the integration of large-scale acquisitions like E*TRADE and Eaton Vance has significantly increased the capital intensity of the business. Investors should monitor whether management can improve capital efficiency as these platforms reach full operational maturity and scale.
Working Capital Cycles Signal Complexity
As reported in recent financial statements, the firm's DSO has remained elevated, ranging between 287 and 363 days, which highlights the inherent complexity of managing settlement cycles within a global institutional and wealth management ecosystem compared to more traditional service-based financial peers.
The lack of a clear trend in DSO suggests that working capital efficiency is heavily influenced by market-wide trading volumes rather than internal operational improvements. This volatility in the cash conversion cycle may continue to obscure the firm's underlying ability to generate consistent, predictable cash flows.
Debt Service Capacity Remains Constrained
According to quarterly filings, the interest coverage ratio has hovered at a low level, peaking at 0.56 in 2026Q1, which indicates that the firm's ability to service its debt obligations remains sensitive to interest rate fluctuations and the profitability of its institutional securities segment.
While the debt-to-equity ratio has remained relatively stable, the low interest coverage ratio suggests that the firm's margin for error is thin in a high-rate environment. This leverage profile warrants close monitoring, as any sustained compression in net interest margins could further strain the firm's debt service capacity.
P/B Ratio Misrepresents Business Model
As noted in financial analysis, the Price-to-Book ratio is the most commonly misapplied metric for Morgan Stanley, as it fails to account for the high proportion of fee-based, capital-light assets that do not require the same balance sheet support as traditional commercial banking operations.
Using P/B to value the firm obscures the value of the wealth management ecosystem, which generates recurring revenue with minimal capital requirements. Analysts should instead prioritize valuation metrics that focus on earnings quality and fee-based growth, such as P/E or EV/EBITDA, to better capture the firm's true economic value.