Latest Ratios: P/E Ratio 18.2x · EV/EBITDA 9.3x · ROE 7.1%. (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 | $54M | $36M | $29M | $27M | $36M | $54M | $32M | $65M | $62M | $43M | $62M |
| Enterprise Value | $46M | $28M | $18M | $18M | $22M | $34M | $26M | $55M | $49M | $40M | $55M |
| P/E Ratio → | 18.24 | 12.44 | 42.33 | — | — | 31.40 | 33.96 | 5.43 | 14.61 | — | 18.25 |
| P/S Ratio | 0.82 | 0.54 | 0.47 | 0.51 | 0.63 | 0.99 | 0.56 | 0.96 | 1.02 | 0.66 | 0.96 |
| P/B Ratio | 1.25 | 0.85 | 0.73 | 0.72 | 0.70 | 0.88 | 0.49 | 0.98 | 0.81 | 0.55 | 0.80 |
| P/FCF | — | — | 12.12 | 71.92 | 79.38 | 4.11 | 12.26 | 29.44 | 4.68 | — | — |
| P/OCF | 121.08 | 80.49 | 9.97 | 13.25 | 11.71 | 3.44 | 8.01 | 13.17 | 3.95 | 94.87 | 37.26 |
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 | — | 0.42 | 0.29 | 0.35 | 0.38 | 0.62 | 0.46 | 0.81 | 0.80 | 0.60 | 0.85 |
| EV / EBITDA | 9.25 | 5.60 | 3.37 | — | 8.01 | 5.08 | 5.45 | 4.89 | 5.68 | 7.11 | 4.10 |
| EV / EBIT | 13.12 | 7.93 | 4.02 | — | 8.91 | 9.22 | 9.77 | 4.11 | 5.80 | — | 9.24 |
| EV / FCF | — | — | 7.33 | 49.17 | 48.53 | 2.58 | 10.09 | 24.96 | 3.69 | — | — |
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 | 49.3% | 49.3% | 47.7% | 32.3% | 41.5% | 48.0% | 47.8% | 50.8% | 47.9% | 43.5% | 47.7% |
| Operating Margin | 5.3% | 5.3% | 5.7% | -16.8% | -1.9% | 5.0% | 1.9% | 10.1% | 5.0% | -1.5% | 9.8% |
| Net Profit Margin | 4.4% | 4.4% | 1.1% | -10.0% | -1.5% | 3.2% | 1.7% | 17.7% | 7.1% | -7.6% | 5.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 7.1% | 7.1% | 1.8% | -12.0% | -1.5% | 2.8% | 1.4% | 16.8% | 5.6% | -6.4% | 4.5% |
| ROA | 4.6% | 4.6% | 1.1% | -8.0% | -1.1% | 2.0% | 1.1% | 12.8% | 4.3% | -5.2% | 3.7% |
| ROIC | 8.5% | 8.5% | 9.3% | -20.2% | -2.1% | 4.0% | 1.4% | 8.5% | 3.3% | -1.0% | 7.0% |
| ROCE | 8.4% | 8.4% | 9.0% | -19.6% | -1.9% | 4.1% | 1.6% | 9.5% | 3.9% | -1.3% | 8.3% |
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 | 0.22 | 0.22 | 0.19 | 0.19 | 0.20 | 0.22 | 0.22 | 0.11 | 0.12 | 0.14 | 0.06 |
| Debt / EBITDA | 1.84 | 1.84 | 1.47 | — | 3.67 | 2.02 | 3.03 | 0.66 | 1.03 | 1.90 | 0.37 |
| Net Debt / Equity | — | -0.19 | -0.29 | -0.23 | -0.27 | -0.33 | -0.09 | -0.15 | -0.17 | -0.05 | -0.09 |
| Net Debt / EBITDA | -1.65 | -1.65 | -2.20 | — | -5.09 | -3.03 | -1.17 | -0.88 | -1.53 | -0.64 | -0.49 |
| Debt / FCF | — | — | -4.79 | -22.75 | -30.85 | -1.53 | -2.17 | -4.48 | -0.99 | — | — |
| Interest Coverage | 4.02 | 4.02 | 3.82 | -3.21 | 6.65 | 9.34 | 7.73 | 42.94 | 20.00 | -1.59 | 22.59 |
Net cash position: cash ($17M) exceeds total debt ($9M)
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 | 2.35 | 2.35 | 1.99 | 2.00 | 2.37 | 2.37 | 2.58 | 2.67 | 2.55 | 2.10 | 2.66 |
| Quick Ratio | 2.35 | 2.35 | 2.01 | 1.92 | 2.28 | 2.37 | 2.50 | 2.57 | 2.55 | 2.10 | 2.66 |
| Cash Ratio | 0.88 | 0.88 | 0.80 | 0.75 | 1.15 | 1.44 | 1.00 | 0.85 | 0.98 | 0.67 | 0.76 |
| Asset Turnover | — | 1.06 | 0.96 | 0.90 | 0.79 | 0.63 | 0.64 | 0.78 | 0.61 | 0.66 | 0.69 |
| Inventory Turnover | — | — | — | 21.00 | 17.48 | — | 17.24 | 16.91 | — | — | — |
| Days Sales Outstanding | — | 142.26 | 153.00 | 167.84 | 148.18 | 126.32 | 193.62 | 187.54 | 198.31 | 156.44 | 150.86 |
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 | 5.5% | 8.0% | 2.4% | — | — | 3.2% | 2.9% | 18.4% | 6.8% | — | 5.5% |
| FCF Yield | — | — | 8.3% | 1.4% | 1.3% | 24.3% | 8.2% | 3.4% | 21.3% | — | — |
| Buyback Yield | 2.8% | 4.2% | 0.0% | 0.2% | 2.9% | 4.4% | 0.0% | 0.4% | 1.2% | 0.1% | 0.0% |
| Total Shareholder Yield | 2.8% | 4.2% | 0.0% | 0.2% | 2.9% | 4.4% | 0.0% | 0.4% | 1.2% | 0.1% | 0.0% |
| Shares Outstanding | — | $12M | $11M | $11M | $11M | $11M | $12M | $12M | $11M | $11M | $11M |
Project-based revenue volatility
Based on reported figures, NTWK trades at a P/S of 0.82 and an EV/EBITDA of 9.25, suggesting the market prices the firm as a regional IT services provider rather than a global vertical software entity, potentially ignoring the long-term value of its Otoz digital retail platform.
The current valuation multiples appear to reflect a significant micro-cap discount compared to peers like Descartes Systems or AppFolio, which command substantially higher premiums. Investors should monitor whether the ongoing transition to cloud-based SaaS models can catalyze a re-rating of these multiples as recurring revenue visibility improves.
As reported in financial statements, NTWK's ROIC has fluctuated between -4.5% and 7.5% over the last ten quarters, indicating that the company struggles to consistently generate returns above its cost of capital due to the lumpy nature of its project-based implementation revenue model.
The volatility in ROIC suggests that the firm's ability to compound capital is heavily dependent on the timing of large-scale automotive OEM contracts. Sustained value creation will likely require a more stable contribution from recurring maintenance and cloud subscription fees to smooth out these periodic performance swings.
According to recent quarterly filings, NTWK's DSO has remained elevated, peaking at 158 days in 2024Q4, which highlights the structural challenge of managing long-term implementation contracts and the resulting pressure on the company's cash conversion cycle compared to more agile, pure-play SaaS competitors.
The extended collection periods suggest that NetSol often acts as a financier for its clients during the implementation phase, which ties up significant working capital. Investors should watch for improvements in DSO as the company shifts toward standardized cloud offerings, which typically feature more favorable payment terms.
Based on reported figures, NTWK maintains a disciplined debt-to-equity ratio of 0.21 as of 2026Q3, demonstrating that management has prioritized balance sheet stability over aggressive, debt-fueled expansion despite the inherent operational risks associated with its offshore development model and geographic concentration in the Asia-Pacific region.
This low leverage profile provides a necessary cushion against the volatility of project-based cash flows and potential geopolitical shocks. While the current interest coverage ratio of 19.84 appears comfortable, the company's reliance on internal funding remains a critical factor in its long-term strategic flexibility.
The most commonly misapplied metric for NTWK is the standard SaaS P/S multiple, which obscures the reality that a significant portion of revenue remains tied to legacy perpetual licenses and bespoke professional services that carry different margin profiles and growth trajectories than pure subscription models.
Applying a blanket SaaS valuation framework to NetSol fails to account for the 'lumpiness' of its implementation-heavy revenue, which can lead to inaccurate growth expectations. Analysts should instead focus on the 'SaaS Transition Mix' and the growth of recurring maintenance revenue to better assess the company's true underlying earnings durability.
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Quick answers to the most common questions about buying NTWK stock.
NetSol Technologies, Inc.'s current P/E ratio is 18.2x. The historical average is 21.1x. This places it at the 54th percentile of its historical range.
NetSol Technologies, Inc.'s current EV/EBITDA is 9.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.4x.
NetSol Technologies, Inc.'s return on equity (ROE) is 7.1%. The historical average is -11.3%.
Based on historical data, NetSol Technologies, Inc. is trading at a P/E of 18.2x. This is at the 54th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
NetSol Technologies, Inc. has 49.3% gross margin and 5.3% operating margin.
NetSol Technologies, Inc.'s Debt/EBITDA ratio is 1.8x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.