Latest Ratios: P/E Ratio 98.3x · EV/EBITDA 28.6x · ROE 5.2%. (1998–2025 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 | $5.1B | $4.4B | $5.5B | $6.1B | $4.9B | $6.3B | $4.2B | $3.1B | $2.2B | $1.8B | $733M |
| Enterprise Value | $5.1B | $4.3B | $5.9B | $6.4B | $5.3B | $6.7B | $4.3B | $3.3B | $2.4B | $1.9B | $751M |
| P/E Ratio → | 98.25 | 80.95 | 86.31 | 83.37 | 65.96 | 125.06 | 94.58 | 76.90 | 44.06 | 44.25 | 33.33 |
| P/S Ratio | 5.25 | 4.45 | 5.81 | 6.88 | 5.67 | 8.93 | 7.14 | 5.02 | 3.64 | 3.38 | 1.91 |
| P/B Ratio | 4.03 | 3.32 | 7.40 | 9.01 | 8.45 | 12.10 | 8.84 | 7.54 | 6.07 | 4.92 | 2.83 |
| P/FCF | 106.21 | 90.18 | 39.04 | 60.61 | 68.59 | 87.09 | 32.49 | 59.87 | 29.80 | 32.50 | 18.64 |
| P/OCF | 80.30 | 68.18 | 34.82 | 50.53 | 53.75 | 66.68 | 30.06 | 49.70 | 24.93 | 27.83 | 15.34 |
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 | — | 4.41 | 6.19 | 7.22 | 6.12 | 9.46 | 7.36 | 5.34 | 3.84 | 3.64 | 1.95 |
| EV / EBITDA | 28.58 | 24.23 | 35.36 | 40.53 | 33.72 | 62.22 | 46.13 | 35.70 | 21.84 | 21.50 | 14.09 |
| EV / EBIT | 43.75 | 47.50 | 47.27 | 51.64 | 49.02 | 81.45 | 72.78 | 46.49 | 29.85 | 29.16 | 18.36 |
| EV / FCF | — | 89.37 | 41.57 | 63.60 | 74.06 | 92.28 | 33.50 | 63.62 | 31.47 | 34.97 | 19.10 |
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 | 41.6% | 41.6% | 44.4% | 45.4% | 44.0% | 42.5% | 41.4% | 41.9% | 42.6% | 42.3% | 42.2% |
| Operating Margin | 11.9% | 11.9% | 11.6% | 12.5% | 12.0% | 9.1% | 9.5% | 8.8% | 11.6% | 11.0% | 8.6% |
| Net Profit Margin | 5.5% | 5.5% | 6.8% | 8.3% | 8.6% | 7.1% | 7.5% | 6.5% | 8.0% | 11.5% | 5.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 5.2% | 5.2% | 9.0% | 11.7% | 13.5% | 10.1% | 10.0% | 10.4% | 13.5% | 19.5% | 8.7% |
| ROA | 3.4% | 3.4% | 4.9% | 5.9% | 6.0% | 4.8% | 5.1% | 5.1% | 6.8% | 10.4% | 5.2% |
| ROIC | 7.4% | 7.4% | 8.0% | 8.5% | 8.3% | 6.4% | 6.9% | 7.5% | 10.8% | 11.2% | 8.7% |
| ROCE | 8.3% | 8.3% | 9.6% | 10.2% | 9.7% | 7.1% | 7.5% | 8.2% | 11.4% | 11.7% | 9.2% |
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 | 0.26 | 0.26 | 0.63 | 0.60 | 0.85 | 0.95 | 0.53 | 0.66 | 0.56 | 0.65 | 0.33 |
| Debt / EBITDA | 1.91 | 1.91 | 2.83 | 2.58 | 3.13 | 4.59 | 2.71 | 2.95 | 1.92 | 2.66 | 1.61 |
| Net Debt / Equity | — | -0.03 | 0.48 | 0.44 | 0.67 | 0.72 | 0.27 | 0.47 | 0.34 | 0.38 | 0.07 |
| Net Debt / EBITDA | -0.22 | -0.22 | 2.15 | 1.91 | 2.49 | 3.50 | 1.38 | 2.10 | 1.16 | 1.52 | 0.34 |
| Debt / FCF | — | -0.81 | 2.53 | 2.99 | 5.47 | 5.19 | 1.00 | 3.75 | 1.67 | 2.48 | 0.46 |
| Interest Coverage | 4.24 | 4.24 | 3.95 | 4.78 | 6.88 | 11.11 | 9.09 | 8.46 | 8.06 | 9.09 | 8.97 |
Net cash position: cash ($381M) exceeds total debt ($342M)
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 | 3.69 | 3.69 | 2.58 | 2.98 | 2.56 | 2.03 | 2.66 | 2.26 | 2.70 | 2.93 | 2.83 |
| Quick Ratio | 2.80 | 2.80 | 1.72 | 1.91 | 1.53 | 1.35 | 1.85 | 1.39 | 1.70 | 2.00 | 1.98 |
| Cash Ratio | 1.79 | 1.79 | 0.68 | 0.75 | 0.61 | 0.64 | 1.09 | 0.59 | 0.79 | 1.02 | 0.97 |
| Asset Turnover | — | 0.54 | 0.68 | 0.72 | 0.69 | 0.58 | 0.68 | 0.72 | 0.85 | 0.72 | 0.90 |
| Inventory Turnover | 3.04 | 3.04 | 3.65 | 3.23 | 2.87 | 3.23 | 3.73 | 3.12 | 3.37 | 3.29 | 3.72 |
| Days Sales Outstanding | — | 68.82 | 58.07 | 57.71 | 58.38 | 59.71 | 46.38 | 53.10 | 49.88 | 57.05 | 60.49 |
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 | 1.0% | 1.2% | 1.2% | 1.2% | 1.5% | 0.8% | 1.1% | 1.3% | 2.3% | 2.3% | 3.0% |
| FCF Yield | 0.9% | 1.1% | 2.6% | 1.6% | 1.5% | 1.1% | 3.1% | 1.7% | 3.4% | 3.1% | 5.4% |
| Buyback Yield | 0.8% | 0.9% | 0.0% | 0.2% | 0.2% | 0.0% | 0.1% | 0.3% | 0.3% | 0.0% | 0.2% |
| Total Shareholder Yield | 0.8% | 0.9% | 0.0% | 0.2% | 0.2% | 0.0% | 0.1% | 0.3% | 0.3% | 0.0% | 0.2% |
| Shares Outstanding | — | $37M | $36M | $36M | $36M | $36M | $36M | $36M | $35M | $35M | $35M |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying NOVT stock.
Novanta Inc.'s current P/E ratio is 98.3x. The historical average is 47.0x. This places it at the 95th percentile of its historical range.
Novanta Inc.'s current EV/EBITDA is 28.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 23.8x.
Novanta Inc.'s return on equity (ROE) is 5.2%. The historical average is 0.3%.
Based on historical data, Novanta Inc. is trading at a P/E of 98.3x. This is at the 95th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Novanta Inc. has 41.6% gross margin and 11.9% operating margin. Operating margin between 10-20% is typical for established companies.
Novanta Inc.'s Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
SBC dilution and margin volatility
Metrics are mathematically derived from official filings.
Premium Multiple on Recovering Growth
Trading at 111x trailing earnings and 32x EV/EBITDA, Novanta's valuation implies sustained double-digit growth, yet forward P/E of 45.6x still prices in significant acceleration, per reported multiples.
The market is assigning a premium to Novanta's recent revenue acceleration, with forward P/E compressing to 45.6x from 111x trailing, suggesting expectations of margin normalization. However, the PEG of 33.8x indicates that the current growth rate does not justify the multiple, implying either overvaluation or a bet on a step-change in earnings power. Compared to peers like MKSI at 26x EV/EBITDA, Novanta's 32x premium appears to reflect its stronger balance sheet and cash position, but investors should monitor whether growth can catch up to the multiple.
Margin Resilience Amid SBC Distortion
Gross margin expanded to 45.5% in 2026Q2, up from 41.4% a year earlier, yet operating margin fell to 6.8% due to an SBC spike, per financial statements.
The gross margin improvement suggests pricing power or favorable mix, but the operating margin compression to 6.8% from 11.9% in 2025Q4 highlights cost pressures, particularly stock-based compensation which reached $19.6M in 2026Q2. Net margin of 4.7% is below the 8.2% seen in 2026Q1, indicating that reported profitability is volatile and may not reflect underlying earning power. Investors should adjust for SBC to assess true profitability, as the gap between gross and operating margins is widening.
ROIC Stagnant Despite Deleveraging
ROIC has hovered near 1.8% over the past ten quarters, with 2026Q2 at 1.1%, despite a sharp reduction in debt, as reported in quarterly data.
Despite a significant deleveraging that reduced D/E from 0.84 to 0.17, ROIC has not improved, indicating that the capital base is not generating incremental returns. The low ROIC relative to peers like MKSI (6.5%) and CGNX (9.0%) suggests that Novanta's asset base, including goodwill of $642M, may be underearning. The increase in cash to $718.6M has boosted liquidity but also diluted returns on capital, as cash earns minimal yield. This stagnation warrants monitoring whether new investments can lift ROIC.
Working Capital Drag Intensifies
Cash conversion cycle lengthened to 121 days in 2026Q2 from 118 days in 2024Q1, driven by DIO rising to 121 days, per reported figures.
Inventory days have increased from 106 to 121 over the past ten quarters, while DSO and DPO have remained relatively stable, indicating that inventory management is becoming less efficient. This has contributed to volatile cash flows, with FCF margin swinging from 39.5% in 2026Q2 to 2.0% in 2025Q4. The extended CCC suggests that working capital is absorbing cash, which may pressure future liquidity if not addressed. Asset turnover remains low at 0.13, reflecting a heavy asset base relative to sales.
Leverage Minimal but Coverage Volatile
Debt-to-equity fell to 0.17 in 2026Q2 from 0.84 in 2024Q1, yet interest coverage swung from 15.4x to 2.0x in 2025Q2, per reported data.
The balance sheet has strengthened dramatically, with total debt down to $282.8M and cash at $718.6M, suggesting a net cash position. However, interest coverage has been volatile, dipping to 2.0x in 2025Q2, which indicates that operating earnings are not consistently covering interest expenses. The D/EBITDA ratio of 16.6x in 2026Q2 is misleading due to depressed EBITDA, but the trend is improving. Overall, leverage is not a concern, but the volatility in coverage warrants attention.
Fortress Liquidity with Inventory Risk
Current ratio improved to 4.57 in 2026Q2 from 2.83 in 2024Q1, with cash of $718.6M, but inventory days rose to 121, per financial statements.
The liquidity position is robust, with a quick ratio of 3.79 indicating that even without inventory sales, current liabilities are well covered. However, the rising DIO suggests that inventory may be becoming obsolete or slow-moving, which could impair the quick ratio if write-downs are needed. The cash pile provides a strong buffer against operational shocks, but the efficiency of working capital is deteriorating, which may signal future cash flow strain.
Misapplied Metric: P/E on SBC-Heavy Earnings
The trailing P/E of 111x is misleading because stock-based compensation of $19.6M in 2026Q2 exceeded net income, per reported figures, inflating earnings quality concerns.
The P/E ratio is commonly used to value Novanta, but it fails to account for the significant dilution from stock-based compensation, which has been volatile and at times exceeded net income. This distorts the true economic earnings, making the P/E appear higher than warranted. A more appropriate metric would be EV/EBITDA adjusted for SBC, or a price-to-cash-earnings ratio, as cash flow has been more stable. Investors should focus on cash-based valuation multiples to avoid overpaying for accounting earnings that may not be sustainable.