Latest Ratios: P/E Ratio -19.6x · EV/EBITDA N/A · ROE -6.3%. (2002–2025 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 | $601M | $709M | $827M | $428M | $525M | $906M | $1.2B | $783M | $1.7B | $1.9B | $1.8B |
| Enterprise Value | $442M | $550M | $571M | $293M | $424M | $670M | $933M | $628M | $1.5B | $1.7B | $1.6B |
| P/E Ratio → | -19.63 | — | 66.36 | — | — | 18.37 | 21.38 | 30.26 | — | 99.58 | 24.16 |
| P/S Ratio | 0.87 | 1.02 | 1.23 | 0.58 | 0.56 | 0.78 | 0.99 | 0.78 | 1.63 | 1.38 | 1.38 |
| P/B Ratio | 1.30 | 1.42 | 1.53 | 0.80 | 0.85 | 1.30 | 1.81 | 1.29 | 2.75 | 2.66 | 2.30 |
| P/FCF | — | — | 5.31 | 8.38 | — | — | 7.29 | — | — | 26.29 | 17.59 |
| P/OCF | 374.02 | 441.25 | 5.02 | 7.53 | — | — | 6.87 | 57.93 | — | 22.18 | 15.92 |
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 | — | 0.79 | 0.85 | 0.40 | 0.45 | 0.57 | 0.74 | 0.63 | 1.44 | 1.24 | 1.20 |
| EV / EBITDA | — | — | 30.51 | — | — | 8.32 | 9.88 | 13.77 | 26.46 | 15.93 | 10.91 |
| EV / EBIT | — | — | — | — | — | 10.22 | 12.35 | 23.98 | 39.34 | 40.85 | 13.84 |
| EV / FCF | — | — | 3.67 | 5.74 | — | — | 5.46 | — | — | 23.54 | 15.28 |
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 | 36.2% | 36.2% | 29.1% | 33.6% | 26.9% | 31.3% | 29.6% | 29.5% | 32.3% | 28.1% | 31.0% |
| Operating Margin | -5.1% | -5.1% | 1.8% | -4.5% | -8.9% | 5.7% | 6.0% | 2.6% | 3.7% | 6.2% | 8.6% |
| Net Profit Margin | -4.7% | -4.7% | 1.8% | -14.1% | -7.4% | 4.2% | 4.6% | 2.6% | -0.2% | 1.4% | 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 | -6.3% | -6.3% | 2.3% | -18.1% | -10.5% | 7.1% | 9.0% | 4.2% | -0.4% | 2.5% | 10.1% |
| ROA | -3.9% | -3.9% | 1.5% | -11.2% | -6.6% | 4.5% | 5.7% | 2.6% | -0.2% | 1.6% | 6.8% |
| ROIC | -8.4% | -8.4% | 2.7% | -5.4% | -12.7% | 11.9% | 13.6% | 4.5% | 6.1% | 12.0% | 15.8% |
| ROCE | -6.0% | -6.0% | 2.1% | -5.3% | -11.8% | 9.0% | 10.8% | 4.0% | 5.4% | 10.7% | 14.6% |
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 | 0.10 | 0.10 | 0.06 | 0.08 | 0.07 | 0.04 | 0.05 | 0.06 | — | — | — |
| Debt / EBITDA | — | — | 1.64 | — | — | 0.35 | 0.37 | 0.76 | — | — | — |
| Net Debt / Equity | — | -0.32 | -0.47 | -0.25 | -0.16 | -0.34 | -0.45 | -0.26 | -0.32 | -0.28 | -0.30 |
| Net Debt / EBITDA | — | — | -13.66 | — | — | -2.93 | -3.30 | -3.41 | -3.49 | -1.86 | -1.65 |
| Debt / FCF | — | — | -1.64 | -2.65 | — | — | -1.82 | — | — | -2.75 | -2.31 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($210M) exceeds total debt ($51M)
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 | 2.69 | 2.69 | 2.81 | 2.83 | 2.41 | 2.59 | 2.45 | 2.49 | 2.23 | 2.39 | 2.70 |
| Quick Ratio | 1.99 | 1.99 | 2.20 | 1.89 | 1.55 | 1.66 | 1.98 | 1.70 | 1.60 | 1.81 | 2.00 |
| Cash Ratio | 1.29 | 1.29 | 1.51 | 1.07 | 0.66 | 0.80 | 0.97 | 0.66 | 0.71 | 0.78 | 1.03 |
| Asset Turnover | — | 0.83 | 0.79 | 0.87 | 0.91 | 1.08 | 1.13 | 1.04 | 1.01 | 1.16 | 1.12 |
| Inventory Turnover | 2.51 | 2.51 | 2.94 | 1.98 | 2.28 | 2.54 | 5.13 | 2.99 | 2.94 | 4.11 | 3.70 |
| Days Sales Outstanding | — | 75.36 | 84.62 | 91.18 | 108.62 | 81.61 | 98.01 | 101.29 | 104.68 | 66.19 | 86.24 |
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 | — | — | 1.5% | — | — | 5.4% | 4.7% | 3.3% | — | 1.0% | 4.1% |
| FCF Yield | — | — | 18.8% | 11.9% | — | — | 13.7% | — | — | 3.8% | 5.7% |
| Buyback Yield | 8.4% | 7.1% | 4.4% | 0.7% | 5.6% | 9.1% | 2.3% | 10.5% | 2.2% | 6.2% | 2.3% |
| Total Shareholder Yield | 8.4% | 7.1% | 4.4% | 0.7% | 5.6% | 9.1% | 2.3% | 10.5% | 2.2% | 6.2% | 2.3% |
| Shares Outstanding | — | $29M | $30M | $29M | $29M | $31M | $31M | $32M | $33M | $33M | $34M |
Includes 30+ ratios · 24 years · Updated daily
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Quick answers to the most common questions about buying NTGR stock.
NETGEAR, Inc.'s current P/E ratio is -19.6x. The historical average is 39.3x.
NETGEAR, Inc.'s return on equity (ROE) is -6.3%. The historical average is 6.4%.
Based on historical data, NETGEAR, Inc. is trading at a P/E of -19.6x. Compare with industry peers and growth rates for a complete picture.
NETGEAR, Inc. has 36.2% gross margin and -5.1% operating margin.
Key Metrics
Top Statement Risk
Persistent negative operating margins
Metrics are mathematically derived from official filings.
Margin Recovery Masks Cost Misalignment
Gross margin improved to 40.2% in 2026Q2 from 22.1% in 2024Q2, yet operating margin remains deeply negative at -5.0%, indicating structural cost issues. According to recent SEC filings, this divergence suggests product mix gains are offset by rigid operating expenses.
The gross margin expansion likely reflects a favorable shift toward higher-margin enterprise and Pro AV products, but the persistent negative operating margin—averaging around -5% over the last four quarters—reveals that SG&A and R&D costs have not adjusted to the lower revenue base. This implies that the company is not achieving operating leverage despite mix improvements, and the path to profitability may require aggressive cost restructuring or a significant revenue inflection. Investors should monitor whether the enterprise momentum cited by management can translate into enough gross profit to cover the fixed cost base.
Return on Capital Remains Subdued
ROIC has been negative for nine of the last ten quarters, with 2026Q2 at -1.9%, reflecting a business that is currently destroying value. Based on EDBL's reported figures, the asset-light model yields low capital intensity, but returns are hampered by negative operating income.
The negative ROIC, despite a low capital base, indicates that the company's operating losses are not being offset by efficient asset utilization. The 2024Q3 spike to 22.8% appears to be an anomaly driven by a one-time gain, as subsequent quarters have reverted to losses. This suggests that the core business is not generating sufficient returns on invested capital, and the recent improvement in gross margin has not yet flowed through to operating income. The sustainability of any recovery hinges on whether the enterprise segment can scale without proportional cost increases.
Working Capital Cycle Lengthens
Cash conversion cycle extended to 191 days in 2026Q2 from 166 days in 2024Q4, driven by rising DIO at 155 days. As reported in financial statements, inventory levels appear elevated relative to sales, potentially signaling demand softness or preparation for new product launches.
The increase in days inventory outstanding (DIO) to 155 days is notable, especially as revenue has been relatively flat, suggesting that inventory may be building ahead of anticipated Wi-Fi 7 upgrades or that sell-through is slower than sell-in. Days sales outstanding (DSO) has remained stable around 80 days, while days payable outstanding (DPO) has been flat, indicating that the company is not stretching supplier terms to fund its working capital. This lengthening cycle ties up cash and may pressure liquidity if the inventory is not sold, though the current ratio remains healthy at 2.48.
Cash Buffer Eroding Despite Healthy Ratios
Current ratio stands at 2.48, but cash and equivalents fell from $286.4M in 2024Q4 to $174.3M in 2026Q2, a 39% decline. According to recent SEC filings, the company continues to repurchase shares, which may be accelerating the cash drawdown.
While the current and quick ratios (2.48 and 1.80) suggest ample short-term liquidity, the rapid depletion of cash reserves—driven by negative free cash flow and persistent buybacks—warrants attention. The company has been buying back shares every quarter, totaling $140.4M over ten quarters, which exceeds free cash flow and is funded by existing cash. If operating losses persist, the cash buffer could be further eroded, though the minimal debt provides a cushion. Investors should monitor whether management curtails buybacks to preserve liquidity.
Minimal Debt Masks Operational Strain
Debt-to-equity remains low at 0.08, with total debt of $35.5M against $174.3M cash, indicating a fortress balance sheet. As reported in financial statements, interest coverage is not a concern, but the negative operating margin poses a greater risk to solvency.
The company's leverage is negligible, and with cash exceeding debt, it is not vulnerable to interest rate spikes or refinancing risk. However, the persistent negative operating margin means that the company is burning cash on operations, which could eventually erode the balance sheet strength if not reversed. The low debt level provides flexibility, but it also suggests that management has not used leverage to fund growth or restructuring. The key risk is not financial leverage but operational leverage—the inability to cover fixed costs with current revenue.
P/E Misleading for Loss-Making Firm
The trailing P/E of -21.32 is meaningless given negative earnings, while the forward P/E of 121.50 implies unrealistic profit expectations. Based on reported figures, investors should focus on EV/Sales or P/B, which better reflect the asset base and revenue generation.
The most commonly misapplied ratio for NTGR is the P/E multiple, as the company is currently unprofitable and the forward P/E of 121.50 suggests the market is pricing in a dramatic earnings recovery that may not materialize. A more appropriate metric is EV/Sales, which at 0.94 indicates the market is valuing the company at roughly its revenue, or P/B at 1.41, which reflects the book value of assets. Given the negative operating margins, investors should also consider EV/EBITDA, but since EBITDA is negative, this ratio is not meaningful. The focus should be on the trajectory of gross margin and operating leverage rather than earnings multiples.