Latest Ratios: P/E Ratio 15.2x · EV/EBITDA 6.9x · ROE 16.4%. (1995–2025 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 | $5.6B | $7.2B | $11.1B | $13.2B | $12.8B | $20.3B | $18.7B | $10.0B | $6.9B | $5.7B | $4.2B |
| Enterprise Value | $5.4B | $6.9B | $11.2B | $13.5B | $13.0B | $20.9B | $19.1B | $10.4B | $7.1B | $5.8B | $4.5B |
| P/E Ratio → | 15.16 | 11.69 | 25.12 | 39.04 | 48.08 | 101.88 | 95.15 | 53.87 | 42.94 | 39.79 | 35.81 |
| P/S Ratio | 1.80 | 2.43 | 4.07 | 5.56 | 5.86 | 10.57 | 11.35 | 6.37 | 4.74 | 4.29 | 4.13 |
| P/B Ratio | 1.57 | 1.85 | 3.09 | 3.94 | 4.18 | 7.16 | 7.22 | 4.44 | 3.40 | 3.26 | 2.78 |
| P/FCF | 10.59 | 10.18 | 15.18 | 27.70 | 32.13 | 51.47 | 44.84 | 32.14 | 20.58 | 17.47 | 22.80 |
| P/OCF | 7.80 | 9.91 | 13.36 | 23.55 | 26.64 | 43.98 | 38.94 | 26.81 | 17.27 | 14.47 | 19.05 |
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 | — | 2.36 | 4.10 | 5.67 | 5.97 | 10.86 | 11.56 | 6.60 | 4.89 | 4.38 | 4.44 |
| EV / EBITDA | 6.92 | 8.22 | 14.92 | 22.39 | 25.46 | 46.56 | 44.93 | 25.23 | 19.91 | 19.02 | 21.25 |
| EV / EBIT | 8.39 | 9.86 | 20.41 | 29.24 | 37.33 | 81.35 | 74.84 | 41.06 | 34.50 | 40.05 | 30.78 |
| EV / FCF | — | 9.87 | 15.29 | 28.27 | 32.75 | 52.86 | 45.69 | 33.29 | 21.22 | 17.83 | 24.47 |
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 | 66.4% | 66.4% | 66.7% | 67.7% | 68.7% | 67.5% | 65.9% | 66.2% | 65.6% | 64.8% | 66.7% |
| Operating Margin | 21.9% | 21.9% | 20.0% | 18.3% | 15.4% | 13.7% | 14.7% | 15.2% | 13.7% | 11.3% | 13.2% |
| Net Profit Margin | 20.8% | 20.8% | 16.2% | 14.2% | 12.2% | 10.4% | 11.9% | 11.8% | 11.0% | 10.8% | 11.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.4% | 16.4% | 12.7% | 10.6% | 9.0% | 7.3% | 8.1% | 8.7% | 8.5% | 8.8% | 8.0% |
| ROA | 11.8% | 11.8% | 8.5% | 6.8% | 5.6% | 4.5% | 5.0% | 5.5% | 5.3% | 5.2% | 5.2% |
| ROIC | 13.2% | 13.2% | 11.2% | 9.4% | 7.5% | 6.3% | 6.5% | 7.4% | 7.2% | 6.1% | 6.9% |
| ROCE | 16.1% | 16.1% | 14.0% | 11.3% | 9.4% | 8.0% | 8.3% | 9.1% | 8.1% | 6.7% | 7.4% |
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 | 0.04 | 0.04 | 0.16 | 0.23 | 0.25 | 0.33 | 0.31 | 0.26 | 0.23 | 0.26 | 0.31 |
| Debt / EBITDA | 0.19 | 0.19 | 0.75 | 1.30 | 1.52 | 2.07 | 1.88 | 1.43 | 1.29 | 1.46 | 2.19 |
| Net Debt / Equity | — | -0.06 | 0.02 | 0.08 | 0.08 | 0.19 | 0.14 | 0.16 | 0.11 | 0.07 | 0.20 |
| Net Debt / EBITDA | -0.26 | -0.26 | 0.11 | 0.45 | 0.48 | 1.22 | 0.83 | 0.88 | 0.60 | 0.39 | 1.45 |
| Debt / FCF | — | -0.31 | 0.11 | 0.57 | 0.62 | 1.39 | 0.85 | 1.16 | 0.64 | 0.37 | 1.67 |
| Interest Coverage | — | — | 104.20 | 56.40 | 36.02 | 7.70 | 10.70 | 10.94 | 9.39 | 5.98 | 66.55 |
Net cash position: cash ($379M) exceeds total debt ($164M)
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 | 1.70 | 2.06 | 2.12 | 1.81 | 1.86 | 0.93 | 1.38 | 1.32 | 1.08 |
| Quick Ratio | 1.55 | 1.55 | 1.70 | 2.06 | 2.12 | 1.81 | 1.86 | 0.93 | 1.37 | 1.31 | 1.07 |
| Cash Ratio | 0.47 | 0.47 | 1.10 | 1.26 | 1.38 | 1.12 | 1.40 | 0.47 | 0.78 | 0.75 | 0.40 |
| Asset Turnover | — | 0.58 | 0.52 | 0.46 | 0.45 | 0.41 | 0.39 | 0.44 | 0.45 | 0.47 | 0.39 |
| Inventory Turnover | — | — | — | — | — | — | — | 156.91 | 144.68 | 52.00 | 71.61 |
| Days Sales Outstanding | — | 91.45 | 86.50 | 89.83 | 86.91 | 76.11 | 68.42 | 75.73 | 81.16 | 71.32 | 103.44 |
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 | — | — | — | — | — | — | — | — | — | 0.2% | 0.9% |
| Payout Ratio | — | — | — | — | — | — | — | — | — | 6.7% | 32.7% |
| 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% | 8.6% | 4.0% | 2.6% | 2.1% | 1.0% | 1.1% | 1.9% | 2.3% | 2.5% | 2.8% |
| FCF Yield | 9.4% | 9.8% | 6.6% | 3.6% | 3.1% | 1.9% | 2.2% | 3.1% | 4.9% | 5.7% | 4.4% |
| Buyback Yield | 8.7% | 6.9% | 3.3% | 2.2% | 1.1% | 0.4% | 0.3% | 0.5% | 0.4% | 0.4% | 1.0% |
| Total Shareholder Yield | 8.7% | 6.9% | 3.3% | 2.2% | 1.1% | 0.4% | 0.3% | 0.5% | 0.4% | 0.6% | 1.9% |
| Shares Outstanding | — | $63M | $66M | $66M | $66M | $67M | $66M | $65M | $63M | $62M | $61M |
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying NICE stock.
NICE Ltd.'s current P/E ratio is 15.2x. The historical average is 43.1x. This places it at the 8th percentile of its historical range.
NICE Ltd.'s current EV/EBITDA is 6.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.7x.
NICE Ltd.'s return on equity (ROE) is 16.4%. The historical average is 6.0%.
Based on historical data, NICE Ltd. is trading at a P/E of 15.2x. This is at the 8th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
NICE Ltd. has 66.4% gross margin and 21.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
NICE Ltd.'s Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin compression amid growth deceleration
Deep Value Pricing Amid Growth Uncertainty
NICE trades at a forward P/E of 9.74 and EV/EBITDA of 5.71, multiples that appear to price in significant growth deceleration and margin pressure, especially when compared to the 74.02 P/E of peer Five9.
The current valuation multiples suggest the market is pricing NICE as a mature, low-growth software firm rather than a cloud transition story. The PEG ratio of 0.42 indicates the stock is trading at a steep discount to its earnings growth rate, which may reflect investor skepticism about the sustainability of its cloud growth trajectory and the recent compression in operating margins. This valuation creates a potential margin of safety but also implies that any further deterioration in growth or profitability could lead to multiple compression.
Margin Compression Signals Transition Headwinds
Operating margin has contracted sharply from 22.4% in 2025Q4 to 13.8% in 2026Q2, a trend that suggests the company is facing rising costs or unfavorable mix shifts as it scales its cloud platform.
The simultaneous decline in gross margin (from 67.8% to 64.0%) and operating margin indicates that cost pressures are not limited to cloud infrastructure but are also flowing through to SG&A, potentially from increased sales and marketing investment. This margin profile suggests that NICE's current profitability may not be representative of its long-term earning power, as the company appears to be investing heavily to maintain its competitive position in an AI-driven market. Investors should monitor whether these investments translate into improved unit economics or simply erode returns on capital.
Declining Returns on Invested Capital
ROIC has trended downward from 3.7% in 2025Q4 to 2.3% in 2026Q2, indicating that the company's capital investments are generating lower incremental returns, a trend that warrants close monitoring.
The decline in ROIC, coupled with a stable but low ROE, suggests that NICE's recent capital deployment—likely toward cloud infrastructure and acquisitions—is not yet translating into proportionate earnings growth. This pattern is typical for companies in the midst of a business model transition, but it raises questions about the efficiency of capital allocation. The company's fortress balance sheet provides a buffer, but sustained low returns on capital could eventually pressure valuation multiples if the market loses confidence in the transition's payoff.
Fortress Balance Sheet Provides Strategic Flexibility
With a debt-to-equity ratio of just 0.02 and a current ratio of 1.33, NICE maintains a virtually unleveraged position that contrasts sharply with peers like Five9 (D/E of 1.08).
The minimal leverage provides NICE with significant financial flexibility to weather the current growth deceleration and invest in its AI capabilities without the constraints of debt covenants or refinancing risk. However, the sharp reduction in cash reserves from $793.1M to $319.2M over the past two years, primarily for share buybacks and acquisitions, suggests that management is actively deploying its balance sheet strength. This conservative posture appears to be a deliberate strategic choice, but it also means the company is not using leverage to enhance returns on equity in a low-interest-rate environment.
The Misleading Nature of P/E in a Transition
The P/E ratio is the most commonly misapplied metric for NICE, as it obscures the significant non-cash charges and working capital swings that distort quarterly earnings and do not reflect the company's underlying cash generation power.
NICE's reported net income is highly volatile due to stock-based compensation, acquisition-related amortization, and large working capital swings, making the P/E ratio an unreliable indicator of valuation. A more appropriate metric would be the P/FCF ratio, which at 9.07 provides a clearer picture of the company's ability to generate cash from its operations. The market's focus on P/E may be causing it to overlook the strong cash conversion profile of the business, which is a more accurate reflection of its economic reality.