Latest Ratios: P/E Ratio -10.7x · EV/EBITDA N/A · ROE -11.6%. (1997–2025 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 | $53.7B | $44.7B | $55.8B | $10.5B | $1.6B | $5.5B | $3.8B | $1.5B | $1.5B | $1.5B | $2.3B |
| Enterprise Value | $59.6B | $50.7B | $63.0B | $12.7B | $4.0B | $7.6B | $4.3B | $1.1B | $1.3B | $1.1B | $1.9B |
| P/E Ratio → | -10.65 | — | — | 23.92 | — | — | — | 43.21 | 63.90 | 82.06 | 24.67 |
| P/S Ratio | 112.43 | 93.61 | 120.33 | 21.08 | 3.21 | 10.68 | 7.83 | 3.03 | 2.93 | 3.01 | 4.43 |
| P/B Ratio | 0.93 | 0.88 | 3.06 | 4.83 | — | 5.57 | 6.80 | 2.90 | 2.75 | 2.50 | 4.12 |
| P/FCF | — | — | — | — | — | — | — | 29.06 | 385.73 | 20.39 | 21.00 |
| P/OCF | — | — | — | 823.09 | 499.24 | 58.14 | 70.17 | 24.20 | 137.24 | 19.36 | 20.56 |
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 | — | 106.14 | 135.91 | 25.53 | 8.02 | 14.93 | 8.89 | 2.30 | 2.71 | 2.18 | 3.64 |
| EV / EBITDA | — | — | — | — | — | — | — | 147.45 | 175.54 | 12.35 | 14.45 |
| EV / EBIT | — | — | — | — | — | — | 74.87 | — | 338.74 | 14.97 | 17.08 |
| EV / FCF | — | — | — | — | — | — | — | 22.09 | 356.66 | 14.74 | 17.29 |
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 | 68.7% | 68.7% | 72.1% | 77.8% | 79.4% | 82.0% | 81.1% | 79.4% | 80.0% | 80.8% | 81.9% |
| Operating Margin | -1140.8% | -1140.8% | -399.8% | -23.2% | -255.5% | -153.6% | -2.8% | -0.2% | 0.8% | 14.5% | 21.3% |
| Net Profit Margin | -844.8% | -844.8% | -251.7% | 86.5% | -294.4% | -104.8% | -1.6% | 7.1% | 4.5% | 3.6% | 18.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -11.6% | -11.6% | -11.4% | 48.2% | -493.4% | -69.9% | -1.4% | 6.6% | 4.0% | 3.1% | 18.3% |
| ROA | -9.2% | -9.2% | -7.6% | 12.0% | -49.3% | -21.3% | -0.6% | 3.9% | 2.5% | 2.1% | 12.9% |
| ROIC | -9.9% | -9.9% | -9.3% | -2.7% | -37.0% | -27.9% | -1.7% | -0.3% | 1.0% | 32.7% | 52.5% |
| ROCE | -12.6% | -12.6% | -12.4% | -3.5% | -47.8% | -35.5% | -1.5% | -0.2% | 0.6% | 11.0% | 20.5% |
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 | 0.16 | 0.16 | 0.40 | 1.04 | — | 2.28 | 1.03 | 0.20 | — | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | 13.62 | — | — | — |
| Net Debt / Equity | — | 0.12 | 0.40 | 1.02 | — | 2.22 | 0.92 | -0.69 | -0.21 | -0.69 | -0.73 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | -46.54 | -14.31 | -4.73 | -3.11 |
| Debt / FCF | — | — | — | — | — | — | — | -6.97 | -29.07 | -5.65 | -3.71 |
| Interest Coverage | -84.06 | -84.06 | -30.23 | -1.54 | -23.89 | -26.84 | 31.46 | — | — | — | — |
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 | 5.62 | 5.62 | 0.71 | 0.83 | 0.83 | 0.86 | 0.95 | 2.79 | 3.01 | 4.66 | 3.69 |
| Quick Ratio | 5.62 | 5.62 | 0.71 | 0.83 | 0.83 | 0.86 | 0.95 | 2.79 | 3.01 | 4.66 | 3.69 |
| Cash Ratio | 5.05 | 5.05 | 0.11 | 0.14 | 0.14 | 0.20 | 0.21 | 2.10 | 2.23 | 3.65 | 3.18 |
| Asset Turnover | — | 0.01 | 0.02 | 0.10 | 0.21 | 0.14 | 0.33 | 0.53 | 0.58 | 0.54 | 0.67 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 157.36 | 142.71 | 135.20 | 138.38 | 135.26 | 149.92 | 122.72 | 125.69 | 119.80 | 59.21 |
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 | 0.8% | 0.9% | — | — | — | — | — | — | — | — | — |
| 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 | — | — | — | 4.2% | — | — | — | 2.3% | 1.6% | 1.2% | 4.1% |
| FCF Yield | — | — | — | — | — | — | — | 3.4% | 0.3% | 4.9% | 4.8% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 3.3% | 4.9% | 7.6% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.8% | 0.9% | 0.0% | 0.0% | 0.0% | 0.0% | 3.3% | 4.9% | 7.6% | 0.0% | 0.0% |
| Shares Outstanding | — | $294M | $193M | $166M | $113M | $100M | $97M | $103M | $114M | $115M | $115M |
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying MSTR stock.
Strategy Inc's current P/E ratio is -10.7x. The historical average is 30.4x.
Strategy Inc's return on equity (ROE) is -11.6%. The historical average is -19.4%.
Based on historical data, Strategy Inc is trading at a P/E of -10.7x. Compare with industry peers and growth rates for a complete picture.
Strategy Inc's current dividend yield is 0.80%.
Strategy Inc has 68.7% gross margin and -1140.8% operating margin.
Key Metrics
Top Statement Risk
Bitcoin price volatility
Metrics are mathematically derived from official filings.
Premium to NAV Drives Valuation
MSTR trades at 68.2x sales and a forward P/E of 26.6, but the software business is secondary; the market prices the Bitcoin treasury at a premium, as per recent filings.
The P/B of 0.57 suggests the market values the company below its book value, which is dominated by digital assets, implying a discount to the stated NAV. However, the forward P/E of 26.6 indicates expectations of normalized earnings, likely from Bitcoin appreciation under new accounting rules. The premium to NAV is the key driver, and its sustainability depends on capital markets access and Bitcoin's trajectory.
Impairments Distort Software Margins
Gross margin is stable at 66.6%, but operating and net margins are deeply negative (-68.1% and -67.2%) due to non-cash digital asset impairments, as reported in Q2 2026.
The software business appears profitable on a cash basis, but headline margins are meaningless for operational assessment. The gross margin decline from 74% to 66.6% over two years reflects the cloud transition, yet the extreme negative operating margins are driven by Bitcoin mark-to-market losses. Investors should focus on subscription revenue growth and cash flow from operations to gauge the underlying software health.
Returns Swing with Bitcoin Prices
ROIC swung from 21.0% in 2025Q2 to -12.2% in 2026Q2, as per financial statements, indicating returns are driven by digital asset gains/losses, not software operations.
The volatility in ROIC, ROE, and ROA is extreme, with ROE ranging from 23.9% to -25.9% over the past year. This suggests the company is not compounding returns on invested capital in a traditional sense; instead, returns are a function of Bitcoin price movements. The capital base is largely digital assets, so traditional return metrics are misleading for assessing management's capital allocation skill.
Working Capital Metrics Misleading
DSO has risen to 91 days in 2026Q2 from 83 days a year earlier, while DPO fell to 89 days, as per ratio data, but these metrics are secondary to Bitcoin holdings.
The cash conversion cycle is not calculable due to missing DIO, but the DSO increase suggests slower collections, possibly due to enterprise software contracts. However, the company's efficiency is better measured by its ability to issue equity at a premium to NAV to acquire Bitcoin accretively. The asset turnover is near zero, reflecting the massive balance sheet dominated by digital assets, making traditional efficiency ratios irrelevant.
Debt Metrics Understate True Leverage
Reported D/E is 0.15, but the company has billions in convertible notes, as per balance sheet data, suggesting the metric may not capture the full leverage picture.
The interest coverage ratio is negative in most quarters, indicating that operating income is insufficient to cover interest expenses, but this is due to impairments. The actual cash interest burden is manageable given the low coupon convertibles, but refinancing risk exists if Bitcoin prices fall and equity issuance becomes less accretive. Investors should monitor the effective leverage relative to the market value of Bitcoin holdings.
Liquidity Buffer Appears Adequate
Current ratio is 5.39 in 2026Q2, up from 0.66 a year earlier, as per ratio data, but this is misleading given negative operating cash flow.
The high current ratio is driven by a large cash balance ($1.7B) relative to current liabilities, but the company's operating cash flow is negative, and it relies on capital markets for funding. Under stress, if Bitcoin prices decline and equity issuance becomes dilutive, liquidity could deteriorate quickly. The quick ratio equals the current ratio, indicating no inventory dependence, but the real liquidity risk is the mark-to-market on digital assets.
Hybrid Peer Group Shows Divergence
MSTR's P/B of 0.57 is below Coinbase's 2.91 and Marathon's 1.15, as per peer data, but its negative margins align with miners, reflecting its Bitcoin proxy nature.
Compared to software peers, MSTR's valuation is untethered from fundamentals, but compared to digital asset proxies, it trades at a discount to book. The negative ROE and net margins are similar to miners like MARA and RIOT, but MSTR's access to capital markets and software cash flows differentiate it. The peer comparison highlights that MSTR is neither a pure software nor a pure miner, making traditional ratio analysis challenging.
P/E Misapplied to Bitcoin Treasury
The P/E ratio is commonly misapplied to MSTR because earnings are distorted by non-cash impairments; a better metric is premium to NAV or Bitcoin yield, as per analyst consensus.
The negative P/E and forward P/E are meaningless for a company whose earnings are driven by Bitcoin price swings. The market should focus on the ratio of Bitcoin holdings per share and the premium to NAV, which reflects the market's valuation of the treasury strategy. The 'Bitcoin Yield' is a non-GAAP metric that management uses to show accretion, but it should be scrutinized for sustainability.