Latest Ratios: P/E Ratio 46.5x · EV/EBITDA 45.0x · ROE 23.1%. (1999–2025 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 | $11.8B | $10.8B | $6.3B | $4.4B | $2.6B | $4.4B | $2.0B | $1.1B | $655M | $739M | $362M |
| Enterprise Value | $12.4B | $11.4B | $6.4B | $4.5B | $2.7B | $4.5B | $2.0B | $1.1B | $632M | $711M | $342M |
| P/E Ratio → | 46.48 | 41.26 | 34.25 | 32.10 | 18.56 | 46.96 | 42.79 | 30.76 | 12.05 | 15.90 | 37.60 |
| P/S Ratio | 13.35 | 12.23 | 9.41 | 8.51 | 4.56 | 10.50 | 7.59 | 4.81 | 2.61 | 3.33 | 2.21 |
| P/B Ratio | 9.20 | 8.17 | 6.82 | 5.87 | 4.43 | 9.22 | 5.50 | 3.44 | 2.33 | 3.26 | 2.07 |
| P/FCF | 53.96 | 49.43 | 29.03 | 41.46 | 26.50 | 34.27 | 37.98 | 55.65 | 20.21 | 13.31 | — |
| P/OCF | 47.87 | 43.85 | 26.90 | 35.69 | 21.78 | 33.03 | 33.92 | 26.56 | 18.15 | 11.96 | — |
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 | — | 12.96 | 9.53 | 8.78 | 4.80 | 10.72 | 7.52 | 4.81 | 2.52 | 3.20 | 2.08 |
| EV / EBITDA | 44.96 | 41.38 | 31.27 | 30.62 | 16.64 | 36.78 | 31.68 | 24.36 | 9.28 | 11.12 | 20.38 |
| EV / EBIT | 48.93 | 44.64 | 29.41 | 29.14 | 17.13 | 39.32 | 35.32 | 27.35 | 10.46 | 12.30 | 33.60 |
| EV / FCF | — | 52.38 | 29.39 | 42.74 | 27.88 | 35.01 | 37.65 | 55.73 | 19.50 | 12.81 | — |
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 | 57.6% | 57.6% | 57.6% | 56.6% | 56.5% | 57.0% | 56.8% | 54.2% | 57.8% | 59.1% | 45.9% |
| Operating Margin | 28.8% | 28.8% | 27.9% | 25.5% | 26.3% | 27.0% | 20.6% | 16.2% | 24.1% | 26.0% | 6.2% |
| Net Profit Margin | 29.4% | 29.4% | 27.3% | 26.3% | 24.6% | 22.4% | 17.8% | 15.6% | 21.7% | 20.9% | 5.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 23.1% | 23.1% | 21.9% | 20.4% | 26.4% | 22.0% | 14.0% | 11.8% | 21.4% | 23.1% | 5.7% |
| ROA | 13.8% | 13.8% | 14.6% | 12.9% | 15.7% | 12.7% | 9.1% | 9.6% | 17.6% | 18.5% | 4.5% |
| ROIC | 12.8% | 12.8% | 14.9% | 12.3% | 17.4% | 18.3% | 12.4% | 9.5% | 19.8% | 24.5% | 5.3% |
| ROCE | 16.2% | 16.2% | 20.7% | 15.9% | 21.9% | 20.2% | 11.7% | 11.4% | 23.4% | 28.2% | 5.8% |
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 | 0.65 | 0.65 | 0.25 | 0.33 | 0.42 | 0.47 | 0.58 | 0.11 | — | — | — |
| Debt / EBITDA | 3.11 | 3.11 | 1.15 | 1.64 | 1.50 | 1.82 | 3.35 | 0.75 | — | — | — |
| Net Debt / Equity | — | 0.49 | 0.08 | 0.18 | 0.23 | 0.20 | -0.05 | 0.00 | -0.08 | -0.12 | -0.12 |
| Net Debt / EBITDA | 2.33 | 2.33 | 0.38 | 0.92 | 0.82 | 0.78 | -0.28 | 0.04 | -0.34 | -0.43 | -1.22 |
| Debt / FCF | — | 2.96 | 0.36 | 1.28 | 1.37 | 0.74 | -0.33 | 0.08 | -0.71 | -0.50 | — |
| Interest Coverage | 110.42 | 110.42 | 135.01 | 103.30 | 108.83 | 25.92 | 59.82 | 399.85 | 694.74 | 516.24 | — |
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 | 6.28 | 6.28 | 2.32 | 2.20 | 4.57 | 1.97 | 9.17 | 6.37 | 5.87 | 4.46 | 4.30 |
| Quick Ratio | 5.47 | 5.47 | 1.92 | 1.77 | 3.70 | 1.69 | 8.16 | 5.36 | 5.00 | 3.79 | 3.55 |
| Cash Ratio | 4.67 | 4.67 | 1.51 | 1.37 | 2.79 | 1.42 | 6.96 | 3.93 | 3.66 | 2.86 | 2.33 |
| Asset Turnover | — | 0.37 | 0.48 | 0.46 | 0.58 | 0.52 | 0.41 | 0.56 | 0.75 | 0.78 | 0.75 |
| Inventory Turnover | 2.03 | 2.03 | 1.82 | 1.63 | 2.13 | 2.27 | 1.89 | 2.13 | 2.53 | 2.60 | 3.03 |
| Days Sales Outstanding | — | 62.97 | 76.05 | 78.87 | 70.82 | 60.04 | 85.78 | 83.75 | 77.80 | 67.33 | 94.92 |
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 | 2.2% | 2.4% | 2.9% | 3.1% | 5.4% | 2.1% | 2.3% | 3.3% | 8.3% | 6.3% | 2.7% |
| FCF Yield | 1.9% | 2.0% | 3.4% | 2.4% | 3.8% | 2.9% | 2.6% | 1.8% | 4.9% | 7.5% | — |
| Buyback Yield | 0.3% | 0.3% | 0.5% | 0.0% | 0.8% | 0.0% | 0.6% | 0.7% | 0.7% | 0.0% | 0.3% |
| Total Shareholder Yield | 0.3% | 0.3% | 0.5% | 0.0% | 0.8% | 0.0% | 0.6% | 0.7% | 0.7% | 0.0% | 0.3% |
| Shares Outstanding | — | $33M | $32M | $32M | $32M | $30M | $29M | $29M | $29M | $29M | $28M |
Includes 30+ ratios · 27 years · Updated daily
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Quick answers to the most common questions about buying NVMI stock.
Nova Ltd.'s current P/E ratio is 46.5x. The historical average is 27.4x. This places it at the 89th percentile of its historical range.
Nova Ltd.'s current EV/EBITDA is 45.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 21.7x.
Nova Ltd.'s return on equity (ROE) is 23.1%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 4.7%.
Based on historical data, Nova Ltd. is trading at a P/E of 46.5x. This is at the 89th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Nova Ltd. has 57.6% gross margin and 28.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Nova Ltd.'s Debt/EBITDA ratio is 3.1x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Geopolitical and guidance uncertainty
Premium Pricing for GAA-Led Growth
Nova trades at 52.5x trailing earnings and 50.5x EV/EBITDA, well above peers, reflecting market expectations for sustained GAA-driven growth, as per reported multiples.
The forward P/E of 39.9x implies the market is pricing in continued double-digit earnings growth, consistent with the 31% revenue surge. However, the PEG of 1.42 suggests the growth premium is not excessive relative to expected EPS expansion. Compared to ONTO's 119x P/E, Nova appears relatively cheaper, but its EV/EBITDA of 50.5x is nearly double MKSI's 27.5x, indicating a rich valuation that leaves little room for execution missteps.
Margin Resilience Amid Mix Shifts
Gross margin held above 56% for ten straight quarters, with operating margin expanding to 29.9% in 2026Q2, reflecting pricing power and operating leverage, as reported in financial statements.
The stability of gross margin near 57% despite product mix changes suggests Nova's integrated metrology commands a premium. Operating margin expansion from 26.2% in 2024Q1 to 29.9% in 2026Q2 indicates that R&D and SG&A are scaling efficiently relative to revenue. Net margin of 29.4% is supported by a low effective tax rate, but investors should monitor whether this is sustainable as tax incentives phase out.
ROIC Dips on Acquisition-Fueled Base
ROIC fell from 4.6% in 2025Q1 to 2.9% in 2026Q2, as the capital base expanded 108% with acquisitions, diluting returns despite strong margins, based on reported figures.
The decline in ROIC is not due to margin deterioration but rather a rapid increase in invested capital from the ancosys acquisition and higher debt. ROE has remained stable around 5%, indicating that leverage is not yet amplifying shareholder returns. If the acquired assets generate the expected synergies, ROIC should recover; otherwise, the market may question the capital allocation strategy.
Working Capital Drag Intensifies
Cash conversion cycle lengthened to 169 days in 2026Q2 from 163 days a year earlier, driven by DIO of 150 days, as per quarterly data, signaling inventory build-up.
Days inventory outstanding jumped from 175 in 2025Q2 to 150 in 2026Q2, but the sequential increase from 164 in 2026Q1 suggests inventory is accumulating faster than sales. DSO of 69 days is elevated, reflecting the lumpy revenue recognition tied to final acceptance. The negative working capital outflow of $47.2M in 2026Q2 indicates that Nova is tying up cash in inventory and receivables, which may pressure near-term cash flow.
Debt-Fueled Expansion Raises Coverage Risk
Debt-to-equity rose from 0.31 in 2024Q1 to 0.55 in 2026Q2, with D/EBITDA at 9.78, indicating increased leverage from acquisitions, as reported in balance sheet data.
Total debt surged to $803.5M, primarily to finance the ancosys acquisition, lifting D/EBITDA to nearly 10x, which is high for a technology company. Interest coverage is not reported, but the elevated leverage suggests that a downturn in WFE spending could strain debt service. However, the company's net cash position historically provides a cushion, and the debt may be manageable given strong EBITDA growth.
Liquidity Buffer Thins but Remains Adequate
Current ratio fell from 2.26 in 2024Q1 to 1.55 in 2026Q2, while quick ratio dropped to 1.35, indicating a thinner but still adequate liquidity cushion, per reported data.
The decline in current ratio is driven by increased short-term debt and inventory build-up, but the quick ratio of 1.35 still covers short-term obligations. Cash levels remained stable at $124.8M, but the working capital outflow suggests that liquidity could tighten if inventory continues to grow. Under a severe demand shock, the company may need to draw on its debt facilities, but its lack of near-term maturities and strong cash generation provide a buffer.
Misapplied Metric: P/E on Lumpy Earnings
The most misapplied ratio for Nova is the trailing P/E, which fails to capture the lumpy revenue recognition and acquisition-related distortions, as per financial statement analysis.
Nova's earnings are subject to significant quarterly volatility due to final acceptance timing and tax incentives, making trailing P/E misleading. A more appropriate metric is EV/EBITDA, which normalizes for capital structure and non-cash charges, or forward P/E, which better reflects the growth trajectory. Investors should also adjust for stock-based compensation and acquisition amortization to derive a cleaner earnings power.