Latest Ratios: P/E Ratio 28.2x · EV/EBITDA 10.5x · ROE 7.8%. (1996–2025 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 | $29.7B | $26.1B | $23.6B | $21.4B | $14.3B | $32.4B | $48.0B | $43.1B | $31.8B | $34.5B | $27.5B |
| Enterprise Value | $35.6B | $31.4B | $28.7B | $26.8B | $20.4B | $36.2B | $51.7B | $46.9B | $34.9B | $37.3B | $30.7B |
| P/E Ratio → | 28.16 | 29.12 | — | — | — | 53.30 | 40.76 | 36.89 | 29.22 | 20.91 | 18.99 |
| P/S Ratio | 1.50 | 1.46 | 1.31 | 1.18 | 0.80 | 1.89 | 2.77 | 2.51 | 1.75 | 1.94 | 1.12 |
| P/B Ratio | 2.38 | 2.37 | 1.96 | 1.77 | 1.07 | 2.24 | 4.03 | 3.41 | 2.62 | 2.87 | 2.03 |
| P/FCF | 12.59 | 29.19 | 17.45 | 11.05 | — | 22.24 | 22.28 | 25.43 | 33.91 | 34.17 | 26.52 |
| P/OCF | 22.90 | 22.43 | 13.92 | 9.27 | — | 16.82 | 18.19 | 18.94 | 17.85 | 18.47 | 14.42 |
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 | — | 1.76 | 1.59 | 1.48 | 1.15 | 2.11 | 2.99 | 2.74 | 1.93 | 2.10 | 1.25 |
| EV / EBITDA | 10.49 | 12.30 | 14.98 | 23.41 | 280.10 | 19.27 | 18.97 | 17.31 | 12.43 | 14.68 | 9.76 |
| EV / EBIT | 22.40 | 20.71 | 62.44 | — | — | 53.73 | 30.69 | 27.27 | 20.46 | 23.02 | 22.31 |
| EV / FCF | — | 35.11 | 21.21 | 13.85 | — | 24.81 | 24.00 | 27.69 | 37.25 | 36.91 | 29.68 |
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 | 45.2% | 45.2% | 43.1% | 41.0% | 40.4% | 41.8% | 45.7% | 46.4% | 47.2% | 46.0% | 43.3% |
| Operating Margin | 8.0% | 8.0% | 2.9% | -0.6% | -8.6% | 3.2% | 7.3% | 8.0% | 9.5% | 8.5% | 7.7% |
| Net Profit Margin | 5.0% | 5.0% | -3.9% | -2.6% | -9.0% | 19.3% | 6.9% | 6.8% | 6.0% | 9.3% | 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 | 7.8% | 7.8% | -5.8% | -3.7% | -11.6% | 25.2% | 9.7% | 9.4% | 9.0% | 13.0% | 11.5% |
| ROA | 3.2% | 3.2% | -2.4% | -1.6% | -5.2% | 11.3% | 4.3% | 4.4% | 4.2% | 5.8% | 4.6% |
| ROIC | 6.4% | 6.4% | 2.3% | -0.5% | -6.1% | 2.5% | 5.9% | 6.5% | 8.6% | 7.2% | 8.7% |
| ROCE | 7.1% | 7.1% | 2.5% | -0.5% | -6.6% | 2.5% | 6.3% | 7.2% | 9.4% | 7.5% | 8.8% |
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 | 0.74 | 0.74 | 0.62 | 0.60 | 0.55 | 0.42 | 0.58 | 0.42 | 0.40 | 0.39 | 0.42 |
| Debt / EBITDA | 3.17 | 3.17 | 3.91 | 6.36 | 100.58 | 3.22 | 2.54 | 1.94 | 1.72 | 1.86 | 1.78 |
| Net Debt / Equity | — | 0.48 | 0.42 | 0.45 | 0.46 | 0.26 | 0.31 | 0.30 | 0.26 | 0.23 | 0.24 |
| Net Debt / EBITDA | 2.08 | 2.08 | 2.65 | 4.73 | 84.52 | 2.00 | 1.36 | 1.41 | 1.12 | 1.09 | 1.04 |
| Debt / FCF | — | 5.92 | 3.76 | 2.80 | — | 2.57 | 1.72 | 2.26 | 3.34 | 2.75 | 3.16 |
| Interest Coverage | 4.56 | 4.56 | 1.36 | -0.72 | -6.09 | 4.10 | 8.69 | 8.22 | 6.46 | 6.16 | 2.42 |
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 | 1.32 | 1.32 | 1.23 | 1.20 | 1.29 | 1.39 | 1.45 | 1.36 | 1.21 | 1.47 | 1.34 |
| Quick Ratio | 0.94 | 0.94 | 0.84 | 0.78 | 0.78 | 0.93 | 1.06 | 0.96 | 0.87 | 1.13 | 1.02 |
| Cash Ratio | 0.37 | 0.37 | 0.30 | 0.23 | 0.15 | 0.31 | 0.42 | 0.20 | 0.27 | 0.28 | 0.23 |
| Asset Turnover | — | 0.66 | 0.62 | 0.62 | 0.58 | 0.55 | 0.62 | 0.63 | 0.70 | 0.70 | 0.76 |
| Inventory Turnover | 3.41 | 3.41 | 3.20 | 3.07 | 2.63 | 2.90 | 3.14 | 3.32 | 3.58 | 4.08 | 4.10 |
| Days Sales Outstanding | — | 72.25 | 74.37 | 85.40 | 95.27 | 91.23 | 87.64 | 106.84 | 84.24 | 86.30 | 83.81 |
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 | 1.3% | 1.3% | 0.0% | 0.0% | 3.0% | 1.8% | 0.0% | 1.2% | 1.3% | 1.1% | 1.2% |
| Payout Ratio | 36.6% | 36.6% | — | — | — | 17.2% | 0.1% | 43.4% | 36.8% | 23.2% | 22.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.6% | 3.4% | — | — | — | 1.9% | 2.5% | 2.7% | 3.4% | 4.8% | 5.3% |
| FCF Yield | 7.9% | 3.4% | 5.7% | 9.1% | — | 4.5% | 4.5% | 3.9% | 2.9% | 2.9% | 3.8% |
| Buyback Yield | 0.0% | 0.0% | 1.9% | 3.3% | 1.4% | 6.0% | 0.7% | 3.6% | 3.3% | 1.9% | 2.2% |
| Total Shareholder Yield | 1.3% | 1.3% | 1.9% | 3.4% | 4.4% | 7.7% | 0.7% | 4.8% | 4.5% | 3.0% | 3.4% |
| Shares Outstanding | — | $963M | $933M | $949M | $952M | $950M | $958M | $973M | $997M | $1.0B | $990M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying PHG stock.
Koninklijke Philips N.V.'s current P/E ratio is 28.2x. The historical average is 30.9x. This places it at the 50th percentile of its historical range.
Koninklijke Philips N.V.'s current EV/EBITDA is 10.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.7x.
Koninklijke Philips N.V.'s return on equity (ROE) is 7.8%. The historical average is 9.5%.
Based on historical data, Koninklijke Philips N.V. is trading at a P/E of 28.2x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Koninklijke Philips N.V.'s current dividend yield is 1.25% with a payout ratio of 36.6%.
Koninklijke Philips N.V. has 45.2% gross margin and 8.0% operating margin.
Koninklijke Philips N.V.'s Debt/EBITDA ratio is 3.2x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Recall litigation and share loss
Premium Multiples Price a Turnaround
Based on reported figures, Philips trades at 29.4x trailing earnings and 18.5x forward earnings, a sizeable compression that suggests the market expects earnings recovery rather than current growth to justify the valuation.
The gap between trailing and forward P/E implies consensus expects earnings to rebound materially, yet the 1.5x price-to-sales ratio sits well below peers such as Stryker and Edwards, which likely reflects the market discounting the company's flat revenue trajectory. The absence of a PEG ratio and the 29.9x price-to-free-cash-flow multiple indicate that valuation hinges on whether recent cash generation proves repeatable, warranting continued monitoring of working capital effects.
Gross Margin Recovery Stalls at Operating Line
According to reported quarterly figures, gross margin recovered to 46.4% in 2026Q3, yet operating margin of 10.8% and net margin of 0.6% indicate that most gross profit is absorbed before reaching shareholders.
The widening spread between gross and operating margin points to persistent overhead and remediation costs that prevent the improved product economics from translating into earnings power. Net margin volatility, which swung from negative to above 10% across recent quarters, suggests non-operating or one-time items materially distort reported earnings, so operating margin is the more reliable gauge of underlying profitability.
Returns Remain Subscale Versus Peers
Based on Philips' reported figures, ROIC of 2.1% in 2026Q3 and ROE of 0.2% sit far below Stryker's 11.1% ROIC and 15.6% ROE, suggesting the company is earning returns that barely exceed its cost of capital.
ROIC has oscillated between roughly 0.7% and 3.8% over ten quarters without establishing a clear compounding trend, implying that capital deployed through acquisitions has not yet generated durable incremental returns. The low ROE relative to a D/E of 0.70 indicates that leverage is not amplifying equity returns, and margin recovery alone may be insufficient to lift returns unless asset turnover of 0.16 improves.
Debt Service Comfort Improving Gradually
As reported in financial statements, Philips' debt-to-equity declined from 0.81 to 0.70 and interest coverage rose to 5.6x in 2026Q3, suggesting debt service has become more comfortable even as absolute debt remains elevated.
Interest coverage has been volatile, dropping to 2.3x in 2025Q1 before recovering, which indicates earnings-based debt service remains sensitive to quarterly swings. Debt-to-EBITDA of 11.4x in the latest quarter appears high on a single-period basis, so investors should monitor whether earnings normalization sustains coverage while litigation-related obligations are settled.
Thin Liquidity Cushion Under Stress
Based on reported figures, the current ratio of 1.33 and quick ratio of 0.90 suggest a modest cushion, with inventory days near 77 implying that a sharp demand decline would pressure short-term liquidity.
The quick ratio approaching 1.0 indicates that liquid assets roughly cover current liabilities without relying on inventory, but this headroom narrows materially under a severe scenario involving recall costs or litigation payments. The cash conversion cycle of 124 days and DPO of 84 days suggest reliance on supplier financing, which may tighten if payables terms are challenged.
Peer Gap May Reflect Structural Discount
Based on reported figures, Philips' 2.1% ROIC trails peers such as Stryker at 11.1% and Edwards at 15.5%, which may indicate the discount is structural rather than a temporary cyclical trough.
Bulls may argue that Philips' recent gross margin of 46.4% and improving free cash flow margin of 10.7% signal a turnaround that the trailing multiples fail to capture, but the persistent gap between gross and operating margin suggests that cost structure, not just top-line momentum, is the binding constraint. The most commonly misapplied ratio here is EV/EBITDA, since remediation and litigation charges are often excluded from adjusted EBITDA, potentially flattering the 12.5x multiple; investors should instead anchor on free cash flow yield and cumulative cash conversion over the full cycle.