Latest Ratios: P/E Ratio 102.0x · EV/EBITDA 41.6x · ROE -0.2%. (2000–2025 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 | $1.6B | $1.1B | $1.1B | $1.3B | $1.1B | $1.2B | $744M | $547M | $271M | $503M | $731M |
| Enterprise Value | $1.6B | $1.2B | $972M | $1.2B | $952M | $1.2B | $722M | $459M | $175M | $402M | $615M |
| P/E Ratio → | 101.95 | — | 270.80 | 403.26 | — | — | — | — | — | — | 80.54 |
| P/S Ratio | 6.24 | 5.12 | 5.89 | 7.55 | 7.16 | 10.63 | 8.45 | 6.40 | 3.16 | 4.94 | 6.81 |
| P/B Ratio | 5.46 | 4.14 | 4.30 | 5.47 | 5.07 | 5.38 | 3.17 | 2.79 | 1.36 | 2.54 | 3.68 |
| P/FCF | — | — | — | 400.46 | 44.86 | 6213.77 | 50.24 | 39.00 | 1221.55 | 1734.47 | — |
| P/OCF | 65.47 | 46.64 | 108.98 | 85.71 | 32.94 | 278.25 | 34.17 | 22.26 | 20.33 | 47.70 | 365.66 |
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 | — | 5.28 | 5.42 | 6.99 | 6.41 | 10.44 | 8.21 | 5.37 | 2.04 | 3.94 | 5.72 |
| EV / EBITDA | 41.61 | 67.27 | 152.95 | 156.47 | 159.32 | — | — | — | — | 68.70 | 35.41 |
| EV / EBIT | 275.20 | 161.56 | 1039.55 | — | — | — | — | — | — | 2114.37 | 47.43 |
| EV / FCF | — | — | — | 370.77 | 40.13 | 6104.99 | 48.76 | 32.72 | 788.72 | 1385.27 | — |
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 | 72.3% | 72.3% | 69.8% | 68.8% | 67.8% | 60.2% | 58.2% | 60.9% | 50.1% | 53.4% | 58.6% |
| Operating Margin | 2.7% | 2.7% | -0.3% | -0.7% | -2.0% | -15.0% | -19.0% | -8.7% | -11.6% | 0.2% | 12.1% |
| Net Profit Margin | -0.3% | -0.3% | 2.3% | 1.9% | -2.3% | -19.3% | -45.8% | -6.3% | -9.0% | -1.3% | 8.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -0.2% | -0.2% | 1.7% | 1.4% | -1.6% | -9.5% | -18.7% | -2.7% | -3.9% | -0.7% | 4.9% |
| ROA | -0.2% | -0.2% | 1.3% | 1.1% | -1.2% | -7.7% | -15.3% | -2.3% | -3.4% | -0.6% | 4.4% |
| ROIC | 1.9% | 1.9% | -0.3% | -0.7% | -1.5% | -6.1% | -7.8% | -5.3% | -7.4% | 0.2% | 14.9% |
| ROCE | 1.9% | 1.9% | -0.2% | -0.5% | -1.3% | -7.0% | -7.3% | -3.6% | -4.8% | 0.1% | 6.8% |
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 | 0.28 | 0.28 | 0.02 | 0.03 | 0.03 | 0.03 | 0.04 | 0.05 | — | — | — |
| Debt / EBITDA | 4.46 | 4.46 | 0.81 | 0.84 | 1.23 | — | — | — | — | — | — |
| Net Debt / Equity | — | 0.13 | -0.35 | -0.41 | -0.53 | -0.09 | -0.09 | -0.45 | -0.48 | -0.51 | -0.59 |
| Net Debt / EBITDA | 2.00 | 2.00 | -13.44 | -12.53 | -18.79 | — | — | — | — | -17.32 | -6.73 |
| Debt / FCF | — | — | — | -29.69 | -4.73 | -108.78 | -1.48 | -6.27 | -432.83 | -349.20 | — |
| Interest Coverage | 1.81 | 1.81 | 0.17 | — | — | — | -13.23 | — | -19.02 | — | 1295.60 |
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 | 2.28 | 2.28 | 3.40 | 3.89 | 3.32 | 4.30 | 4.58 | 5.27 | 8.05 | 8.29 | 9.19 |
| Quick Ratio | 2.28 | 2.28 | 3.40 | 3.89 | 3.32 | 4.30 | 4.58 | 5.27 | 8.05 | 8.29 | 9.19 |
| Cash Ratio | 0.59 | 0.59 | 1.90 | 2.67 | 2.39 | 3.20 | 3.44 | 3.49 | 4.92 | 5.12 | 6.31 |
| Asset Turnover | — | 0.52 | 0.57 | 0.57 | 0.53 | 0.41 | 0.31 | 0.36 | 0.38 | 0.45 | 0.48 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 138.21 | 149.79 | 98.83 | 103.60 | 133.06 | 141.53 | 173.37 | 219.40 | 206.25 | 163.57 |
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% | — | 0.4% | 0.2% | — | — | — | — | — | — | 1.2% |
| FCF Yield | — | — | — | 0.2% | 2.2% | 0.0% | 2.0% | 2.6% | 0.1% | 0.1% | — |
| Buyback Yield | 0.0% | 0.0% | 0.7% | 0.1% | 2.1% | 0.4% | 0.0% | 1.8% | 1.9% | 2.7% | 0.3% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.7% | 0.1% | 2.1% | 0.4% | 0.0% | 1.8% | 1.9% | 2.7% | 0.3% |
| Shares Outstanding | — | $39M | $39M | $39M | $37M | $37M | $34M | $32M | $32M | $32M | $32M |
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying PDFS stock.
PDF Solutions, Inc.'s current P/E ratio is 102.0x. The historical average is 50.1x. This places it at the 100th percentile of its historical range.
PDF Solutions, Inc.'s current EV/EBITDA is 41.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 37.0x.
PDF Solutions, Inc.'s return on equity (ROE) is -0.2%. The historical average is -3.8%.
Based on historical data, PDF Solutions, Inc. is trading at a P/E of 102.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
PDF Solutions, Inc. has 72.3% gross margin and 2.7% operating margin.
PDF Solutions, Inc.'s Debt/EBITDA ratio is 4.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Margin pressure from OpEx
Metrics are mathematically derived from official filings.
Thin Operating Leverage Masks Underlying Strength
Despite a 68.9% gross margin in 2026Q2, operating margin was only 8.2%, reflecting heavy R&D and SG&A spending that consumed 59% of revenue, as per recent financial statements.
The gap between gross and operating margins highlights a high fixed-cost base, typical of a specialized engineering workforce. While gross margin has remained stable near 70%, operating margin has been volatile, swinging from -7.4% in 2025Q1 to 10.5% in 2026Q1, indicating that the company has not yet achieved consistent operating leverage. The recent EPS miss despite 22% revenue growth suggests that cost discipline remains a challenge, and investors should monitor whether the 8.2% operating margin in 2026Q2 can be sustained as the company scales.
Returns on Capital Remain Subdued
ROIC has hovered near 1% over the past year, with 2026Q2 at 1.2%, while ROE improved to 1.3%, reflecting a capital-intensive shift toward hardware and intangibles, based on reported figures.
The low ROIC and ROE, despite a healthy gross margin, suggest that the company is reinvesting heavily in growth initiatives, including the Cimetrix acquisition and DFI hardware rollout, which have yet to generate meaningful returns. The increase in PPE (up 49.5% year-over-year) and goodwill (to $95.0M) indicates a deliberate strategy to build long-term capabilities, but the near-term return on capital remains weak. If the Exensio subscription base scales as expected, returns could improve, but the current data suggests a period of investment before compounding begins.
Working Capital Efficiency Deteriorates
DSO rose to 138 days in 2026Q2 from 102 days in 2024Q1, while DPO increased to 69 days, indicating slower collections and extended supplier payments, as per quarterly financial data.
The elongation of DSO suggests that customers, likely large foundries, are taking longer to pay, possibly due to the hardware-heavy integrated solutions mix. Meanwhile, DPO has increased, which may indicate PDFS is leveraging supplier credit to manage cash flow, but the overall cash conversion cycle remains negative or unavailable due to missing DIO data. The asset turnover ratio has been stable at 0.13-0.16, reflecting a growing asset base that is not yet generating proportional revenue, a sign that efficiency gains are still pending.
Leverage Creeps Up but Remains Manageable
Debt-to-equity rose to 0.19 in 2026Q2 from 0.02 a year earlier, while interest coverage improved to 5.18, indicating increased but still comfortable debt service, based on reported balance sheet data.
The rise in leverage appears tied to the Cimetrix acquisition and increased capital expenditures, but the absolute debt level remains modest relative to equity. Interest coverage of 5.18 in 2026Q2 is adequate, though it was as low as 1.06 in 2025Q2, highlighting the volatility in earnings. The low D/E ratio suggests that PDFS has ample capacity to take on additional debt if needed, but the recent trend warrants monitoring to ensure that debt service does not become a constraint as the company scales.
Liquidity Buffer Strengthens with Cash Hoard
Current ratio improved to 3.45 in 2026Q2, with cash surging to $114.9M from $42.2M in 2025Q4, providing a strong buffer against operational volatility, as per recent SEC filings.
The liquidity position is robust, with a current ratio well above 2 and a quick ratio equal to the current ratio, indicating no inventory dependence. The cash infusion in 2026Q2 likely came from a financing event, given the 20.6% increase in total assets. This cash cushion provides flexibility for continued investment in R&D and potential acquisitions, but it also suggests that the company is not yet generating sufficient internal cash flow to fund its growth, as evidenced by negative FCF in five of the last ten quarters.
Misapplied Metric: P/E on Negative Earnings
The trailing P/E of -3122.70 is meaningless given near-zero GAAP earnings, and investors should instead focus on EV/EBITDA or P/S, which better capture the company's growth potential, based on current valuation multiples.
The negative P/E is a common misapplication for companies with minimal or negative net income, as it obscures the underlying business value. PDFS's forward P/E of 40.40 and EV/EBITDA of 126.00 indicate that the market is pricing in significant future growth, but these multiples are also elevated relative to peers like ONTO (EV/EBITDA 83.63) and ACLS (30.70). A more appropriate metric would be EV/Sales or EV/EBITDA, which account for the company's capital structure and non-cash charges, providing a clearer picture of valuation relative to its growth trajectory.