Latest Ratios: P/E Ratio 48.2x · EV/EBITDA 8.1x · ROE 2.3%. (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 | $6.7B | $5.9B | $5.8B | $8.1B | $8.2B | $5.2B | $5.3B | $9.6B | $9.7B | $13.6B | $14.1B |
| Enterprise Value | $7.5B | $6.6B | $6.9B | $9.6B | $9.5B | $6.0B | $6.1B | $11.2B | $11.0B | $14.9B | $15.9B |
| P/E Ratio → | 48.21 | 40.08 | 9.13 | 8.11 | 53.56 | — | — | — | — | — | — |
| P/S Ratio | 0.77 | 0.67 | 0.65 | 0.94 | 1.14 | 0.95 | 0.87 | 1.13 | 1.15 | 1.86 | 1.94 |
| P/B Ratio | 1.12 | 0.93 | 0.90 | 1.29 | 1.60 | 1.03 | 1.00 | 1.22 | 0.70 | 0.95 | 1.01 |
| P/FCF | 7.76 | 6.78 | 6.07 | — | — | 58.11 | 7.53 | 19.89 | 35.07 | 21.22 | 20.82 |
| P/OCF | 5.41 | 4.73 | 4.43 | 56.30 | — | 17.97 | 5.69 | 13.40 | 18.65 | 16.32 | 14.66 |
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 | — | 0.76 | 0.78 | 1.12 | 1.32 | 1.09 | 1.01 | 1.32 | 1.30 | 2.03 | 2.19 |
| EV / EBITDA | 8.15 | 7.24 | 5.69 | 10.09 | 16.86 | 35.04 | — | — | 12.21 | 35.28 | — |
| EV / EBIT | 13.28 | 14.36 | 7.52 | 13.73 | 30.15 | — | — | — | 82.08 | — | — |
| EV / FCF | — | 7.70 | 7.28 | — | — | 66.97 | 8.77 | 23.23 | 39.71 | 23.21 | 23.50 |
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 | 20.2% | 20.2% | 22.7% | 21.4% | 18.4% | 14.0% | 7.1% | 10.0% | 17.1% | 12.2% | -1.4% |
| Operating Margin | 6.5% | 6.5% | 9.9% | 7.6% | 3.6% | -2.4% | -39.8% | -74.1% | 2.5% | -3.8% | -33.3% |
| Net Profit Margin | 1.7% | 1.7% | 7.2% | 11.6% | 2.1% | -4.5% | -41.7% | -71.9% | -0.4% | -3.2% | -33.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 2.3% | 2.3% | 10.0% | 17.5% | 3.0% | -4.8% | -38.7% | -56.1% | -0.2% | -1.7% | -15.8% |
| ROA | 1.3% | 1.3% | 5.6% | 9.3% | 1.6% | -2.6% | -22.0% | -37.0% | -0.2% | -1.1% | -10.1% |
| ROIC | 5.8% | 5.8% | 8.5% | 6.9% | 3.2% | -1.7% | -23.3% | -38.2% | 1.0% | -1.3% | -10.6% |
| ROCE | 6.3% | 6.3% | 9.8% | 7.9% | 3.4% | -1.7% | -25.6% | -44.3% | 1.2% | -1.5% | -11.9% |
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 | 0.37 | 0.37 | 0.37 | 0.38 | 0.46 | 0.47 | 0.48 | 0.35 | 0.20 | 0.19 | 0.23 |
| Debt / EBITDA | 2.55 | 2.55 | 1.96 | 2.49 | 4.19 | 13.88 | — | — | 3.01 | 6.44 | — |
| Net Debt / Equity | — | 0.12 | 0.18 | 0.25 | 0.25 | 0.16 | 0.16 | 0.20 | 0.09 | 0.09 | 0.13 |
| Net Debt / EBITDA | 0.86 | 0.86 | 0.95 | 1.64 | 2.30 | 4.63 | — | — | 1.43 | 3.03 | — |
| Debt / FCF | — | 0.91 | 1.21 | — | — | 8.86 | 1.23 | 3.34 | 4.64 | 1.99 | 2.67 |
| Interest Coverage | 5.26 | 5.26 | 10.13 | 7.95 | 4.05 | -1.99 | -32.08 | -63.62 | 1.44 | -2.84 | -23.98 |
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 | 2.42 | 2.42 | 2.46 | 2.40 | 2.25 | 2.57 | 2.79 | 2.72 | 3.11 | 3.07 | 2.58 |
| Quick Ratio | 1.67 | 1.67 | 1.64 | 1.51 | 1.51 | 1.87 | 2.04 | 1.74 | 1.83 | 1.79 | 1.49 |
| Cash Ratio | 0.65 | 0.65 | 0.52 | 0.34 | 0.44 | 0.83 | 0.91 | 0.52 | 0.61 | 0.61 | 0.46 |
| Asset Turnover | — | 0.77 | 0.78 | 0.76 | 0.71 | 0.58 | 0.61 | 0.64 | 0.43 | 0.36 | 0.34 |
| Inventory Turnover | 3.88 | 3.88 | 3.55 | 3.14 | 3.26 | 3.57 | 4.02 | 3.47 | 2.35 | 2.14 | 2.21 |
| Days Sales Outstanding | — | 95.88 | 98.60 | 112.44 | 122.26 | 117.75 | 112.98 | 107.53 | 115.12 | 125.43 | 138.33 |
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 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.7% | 3.2% | 1.9% | 1.0% | 0.9% | 0.4% | 0.4% | 0.8% | 0.8% | 0.6% | 1.6% |
| Payout Ratio | 131.0% | 131.0% | 17.0% | 8.0% | 50.3% | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.1% | 2.5% | 11.0% | 12.3% | 1.9% | — | — | — | — | — | — |
| FCF Yield | 12.9% | 14.7% | 16.5% | — | — | 1.7% | 13.3% | 5.0% | 2.9% | 4.7% | 4.8% |
| Buyback Yield | 4.7% | 5.4% | 4.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 7.4% | 8.6% | 5.8% | 1.0% | 0.9% | 0.4% | 0.4% | 0.8% | 0.8% | 0.6% | 1.6% |
| Shares Outstanding | — | $375M | $396M | $397M | $394M | $386M | $384M | $382M | $378M | $377M | $376M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying NOV stock.
NOV Inc.'s current P/E ratio is 48.2x. The historical average is 22.7x. This places it at the 90th percentile of its historical range.
NOV Inc.'s current EV/EBITDA is 8.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.5x.
NOV Inc.'s return on equity (ROE) is 2.3%. The historical average is 4.8%.
Based on historical data, NOV Inc. is trading at a P/E of 48.2x. This is at the 90th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
NOV Inc.'s current dividend yield is 2.70% with a payout ratio of 131.0%.
NOV Inc. has 20.2% gross margin and 6.5% operating margin.
NOV Inc.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Margin compression and stagnant revenue
Metrics are mathematically derived from official filings.
Cyclical Discount Masks Optionality
NOV trades at 8.78x EV/EBITDA versus SLB's 12.19x and BKR's 13.76x, per peer data, implying the market prices it as a cyclical manufacturer despite potential technology upside.
The forward EV/EBITDA of 5.10x suggests the market expects EBITDA growth, but the trailing P/E of 52.36x is distorted by depressed earnings. The P/B of 1.21x is well below peers (SLB 2.94x, BKR 3.26x), indicating the market assigns little value to NOV's installed base and software potential. This discount may reflect skepticism about margin recovery, but if RigOS adoption gains traction, the re-rating could be significant.
Margin Compression Undermines Earnings Power
Gross margin fell from 26.6% in Q2 2024 to 24.4% in Q2 2026, while net margin dropped to 5.2%, per quarterly data, indicating persistent pricing pressure and mix shift.
Operating margin of 9.0% in Q2 2026 is below the 14.1% peak in Q2 2024, suggesting high fixed costs are not being adequately covered at current revenue levels. The net margin of 5.2% is thin, and the prior quarter's net loss highlights earnings volatility. The improvement in Q2 2026 may be temporary, as revenue growth remains negative, and the company's ability to expand margins hinges on a sustained upturn in drilling activity and a shift toward higher-margin services.
Returns Trapped in Cyclical Trough
ROIC averaged 1.6% over the last five quarters, with Q2 2026 at 2.0%, far below the cost of capital, as per reported figures, indicating value destruction at current activity levels.
ROE of 1.8% and ROA of 1.0% in Q2 2026 are depressed, reflecting the cyclical downturn and margin compression. The company's heavy asset base and high fixed costs amplify the impact of revenue declines on returns. While the balance sheet is conservatively financed, the low returns suggest that capital employed is not generating adequate profits, and investors should monitor whether management can improve asset utilization and margin recovery to restore returns above the cost of capital.
Working Capital Drag Intensifies
Cash conversion cycle lengthened to 147 days in Q2 2026 from 187 days in Q2 2024, driven by DSO of 88 days and DIO of 108 days, per quarterly data, tying up cash.
The CCC improvement from 187 to 147 days is positive, but it remains elevated, and the recent negative FCF margin (-3.0%) suggests working capital swings are volatile. DSO of 88 days is high, indicating slow collections, while DPO of 48 days is relatively low, limiting supplier financing. The asset turnover of 0.19x is stable but low, reflecting the capital-intensive nature of the business. Efficiency gains are needed to free up cash and support capital returns.
Conservative Leverage Provides Cushion
Debt-to-equity remains at 0.37, with interest coverage of 8.48x in Q2 2026, per balance sheet data, indicating ample capacity to service debt even in a downturn.
The D/EBITDA ratio of 8.13x is elevated due to depressed EBITDA, but the absolute debt level is stable at $2.3B, and the low D/E suggests minimal refinancing risk. Interest coverage of 8.48x is comfortable, though it fell from 14.32x in Q2 2024, reflecting lower operating income. The conservative capital structure provides financial flexibility, but investors should monitor whether the company uses this capacity for value-accretive investments or returns to shareholders.
Liquidity Buffer Remains Robust
Current ratio stands at 2.42 with quick ratio of 1.61, and cash of $1.2B, per latest balance sheet, providing a strong cushion against cyclical shocks.
The current ratio has remained above 2.4 for the past year, indicating that current assets comfortably cover short-term obligations. The quick ratio of 1.61 suggests that even without inventory, the company can meet near-term liabilities. Cash of $1.2B is up from $468M in Q1 2024, reflecting conservative cash management. This liquidity position supports the company through prolonged downturns and allows it to maintain dividends and buybacks, though the recent negative FCF warrants monitoring.
P/E Misleads in Cyclical Downturn
The trailing P/E of 52.36x is distorted by trough earnings, obscuring NOV's normalized earning power; forward P/E of 23.29x and EV/EBITDA of 8.78x offer better valuation anchors.
In cyclical industries, P/E ratios are unreliable when earnings are depressed, as they overstate the cost of equity. NOV's current P/E is inflated by net margins of 1.66% TTM, which are not representative of mid-cycle profitability. Investors should instead use EV/EBITDA or P/B, which are less sensitive to cyclical swings. The forward EV/EBITDA of 5.10x suggests the market expects EBITDA recovery, but the sustainability of that recovery is uncertain given stagnant revenue and margin compression.