Latest Ratios: P/E Ratio 30.1x · EV/EBITDA 31.9x · ROE 8.8%. (2017–2025 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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $11.7B | $17.8B | $20.3B | $25.0B | $16.2B | $28.2B | $39.3B | $7.8B | — | — |
| Enterprise Value | $11.0B | $17.1B | $19.3B | $23.8B | $14.8B | $27.0B | $38.8B | $7.4B | — | — |
| P/E Ratio → | 30.15 | 42.44 | 10.86 | — | — | 88.66 | — | — | — | — |
| P/S Ratio | 2.77 | 4.22 | 5.55 | 8.18 | 5.77 | 10.94 | 23.21 | 6.86 | — | — |
| P/B Ratio | 2.67 | 3.75 | 4.26 | 8.09 | 4.93 | 9.28 | 17.52 | 3.87 | — | — |
| P/FCF | 9.35 | 14.22 | 21.55 | 41.31 | 36.72 | 37.92 | 3439.28 | — | — | — |
| P/OCF | 9.11 | 13.87 | 21.00 | 40.77 | 34.45 | 37.47 | 1363.14 | 11929.40 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 4.05 | 5.29 | 7.80 | 5.27 | 10.49 | 22.93 | 6.48 | — | — |
| EV / EBITDA | 31.86 | 49.56 | 95.99 | — | — | 76.45 | — | — | — | — |
| EV / EBIT | 34.36 | 38.35 | 67.11 | — | — | 81.84 | — | — | — | — |
| EV / FCF | — | 13.66 | 20.53 | 39.38 | 33.58 | 36.35 | 3396.93 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 80.1% | 80.1% | 79.4% | 77.5% | 75.8% | 79.5% | 73.5% | 68.6% | 68.0% | 62.2% |
| Operating Margin | 7.6% | 7.6% | 4.9% | -4.1% | -3.6% | 12.7% | -8.4% | -121.5% | -9.9% | -29.2% |
| Net Profit Margin | 9.9% | 9.9% | 51.1% | -1.2% | -3.4% | 12.3% | -7.6% | -119.1% | -8.3% | -27.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 8.8% | 8.8% | 47.5% | -1.1% | -3.0% | 12.0% | -6.0% | -94.1% | -7.0% | -14.2% |
| ROA | 7.7% | 7.7% | 41.7% | -1.0% | -2.6% | 10.3% | -5.1% | -75.9% | -5.2% | -10.7% |
| ROIC | 6.1% | 6.1% | 4.7% | -4.9% | -4.0% | 13.5% | -6.4% | -83.5% | -6.4% | -12.2% |
| ROCE | 6.4% | 6.4% | 4.4% | -3.7% | -3.0% | 11.5% | -6.2% | -84.1% | -6.7% | -12.2% |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.06 | 0.06 | 0.04 | 0.06 | 0.07 | 0.08 | 0.08 | 0.11 | 0.17 | — |
| Debt / EBITDA | 0.76 | 0.76 | 0.92 | — | — | 0.71 | — | — | — | — |
| Net Debt / Equity | — | -0.15 | -0.20 | -0.38 | -0.42 | -0.38 | -0.22 | -0.21 | 0.03 | -0.08 |
| Net Debt / EBITDA | -2.05 | -2.05 | -4.73 | — | — | -3.31 | — | — | — | — |
| Debt / FCF | — | -0.57 | -1.01 | -1.93 | -3.14 | -1.57 | -42.35 | — | — | — |
| Interest Coverage | — | — | — | — | -4.65 | 35.07 | -199.03 | -635.80 | -61.88 | -1157.33 |
Net cash position: cash ($969M) exceeds total debt ($262M)
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 7.64 | 7.64 | 8.75 | 10.53 | 9.08 | 12.25 | 11.51 | 11.74 | 8.20 | 11.11 |
| Quick Ratio | 7.64 | 7.64 | 8.75 | 10.53 | 9.08 | 12.25 | 11.51 | 11.74 | 8.20 | 11.11 |
| Cash Ratio | 5.30 | 5.30 | 6.31 | 7.93 | 7.09 | 9.55 | 8.60 | 9.74 | 5.79 | 8.92 |
| Asset Turnover | — | 0.77 | 0.68 | 0.85 | 0.73 | 0.73 | 0.65 | 0.48 | 0.63 | 0.39 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 86.27 | 89.43 | 91.18 | 88.76 | 92.50 | 121.56 | 101.05 | 107.16 | 105.44 |
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 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.3% | 2.4% | 9.2% | — | — | 1.1% | — | — | — | — |
| FCF Yield | 10.7% | 7.0% | 4.6% | 2.4% | 2.7% | 2.6% | 0.0% | — | — | — |
| Buyback Yield | 7.9% | 5.2% | 4.9% | 3.3% | 1.0% | 0.0% | 0.1% | 6.1% | — | — |
| Total Shareholder Yield | 7.9% | 5.2% | 4.9% | 3.3% | 1.0% | 0.0% | 0.1% | 6.1% | — | — |
| Shares Outstanding | — | $688M | $698M | $675M | $666M | $776M | $596M | $420M | $529M | $449M |
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying PINS stock.
Pinterest, Inc.'s current P/E ratio is 30.1x. The historical average is 47.3x. This places it at the 33th percentile of its historical range.
Pinterest, Inc.'s current EV/EBITDA is 31.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 74.0x.
Pinterest, Inc.'s return on equity (ROE) is 8.8%. The historical average is -6.4%.
Based on historical data, Pinterest, Inc. is trading at a P/E of 30.1x. This is at the 33th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Pinterest, Inc. has 80.1% gross margin and 7.6% operating margin.
Pinterest, Inc.'s Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
SBC dilution and ad cyclicality
Metrics are mathematically derived from official filings.
SBC Masks Underlying Cash Profitability
Despite a 78.2% gross margin in Q2 2026, operating margin fell to -4.7% due to heavy stock-based compensation, which exceeded gross profit, according to recent financial statements. This suggests reported losses understate the cash-generative nature of the business.
The reported operating loss of $55.2M in Q2 2026 appears driven by $556M in stock-based compensation, which alone exceeds the $922M gross profit. Excluding SBC, the operating margin would be significantly positive, indicating that the core advertising business is profitable on a cash basis. Investors should focus on cash-based metrics like operating cash flow margin, which stood at 49.3%, to gauge true earning power.
ROIC Volatility Reflects Investment Cycle
ROIC swung from -2.3% in Q1 2024 to 6.7% in Q4 2024, then back to -1.1% in Q2 2026, based on reported figures. This volatility suggests the company is in a heavy investment phase, with returns not yet consistently compounding.
The erratic ROIC pattern, with positive spikes in Q4 quarters, indicates that Pinterest's returns are highly seasonal and sensitive to ad revenue concentration. The negative ROIC in recent quarters, despite strong cash flow, suggests that accounting losses from SBC and investments are masking the underlying return on invested capital. As the company scales its AI-driven ad platform, investors should monitor whether ROIC can stabilize above the cost of capital, which would signal durable value creation.
Working Capital Efficiency Improves with Scale
DSO improved to 68 days in Q2 2026 from 82 days in Q1 2024, while DPO remained stable around 40 days, as per financial statements. This suggests better collection efficiency, though the cash conversion cycle remains positive, indicating a modest working capital drag.
The reduction in DSO by 14 days over the period indicates that Pinterest is collecting ad receivables faster, likely due to improved payment terms with advertisers or better billing systems. However, the stable DPO suggests limited supplier leverage, which is typical for a platform with minimal cost of goods sold. The asset turnover ratio of 0.25x remains low, reflecting the company's high cash and investment balances, which do not generate revenue directly. This implies that efficiency gains are more likely to come from revenue growth rather than asset utilization.
Convertible Debt Introduces New Risk
Debt-to-equity rose to 0.41 in Q2 2026 from 0.05 in Q2 2024, following a $1.2B convertible issuance, as reported in SEC filings. While interest coverage is not disclosed, the company's cash flow appears sufficient to service this debt, but dilution risk warrants monitoring.
The sharp increase in leverage, driven by convertible notes, suggests a strategic shift to fund buybacks and acquisitions. Although the balance sheet remains healthy with a current ratio of 3.81, the conversion feature of the debt could lead to significant shareholder dilution if the stock price appreciates. The D/EBITDA ratio of 0.85 in Q4 2025 indicates manageable leverage relative to EBITDA, but the negative EBITDA in recent quarters complicates this metric. Investors should monitor the terms of the convertible and the potential for dilution, which could offset the benefits of the buyback program.
Liquidity Cushion Thins but Remains Adequate
Current ratio fell to 3.81 in Q2 2026 from 10.04 in Q2 2024, while cash reserves stood at $422.5M, according to balance sheet data. This suggests a reduced but still comfortable liquidity buffer, though the trend warrants monitoring.
The decline in the current ratio is largely due to the issuance of convertible debt and increased investment in marketable securities, which are classified as non-current. The quick ratio of 3.81 indicates that Pinterest can cover its short-term obligations without relying on inventory, which is negligible. However, the absolute cash balance of $422.5M is lower than the $1B mentioned in the intelligence, suggesting that cash may have been deployed into buybacks and acquisitions. Under a severe ad-market downturn, the company's high fixed costs could pressure liquidity, but the current buffer appears sufficient for at least a year of operations.
P/E Misleads on SBC-Heavy Model
The trailing P/E of 38.3 is distorted by stock-based compensation, which exceeded net income in Q2 2026, as per financial statements. A more appropriate metric is P/FCF, which at 12.4 reflects the company's true cash generation, suggesting the market may be undervaluing its cash earnings.
Pinterest's heavy use of SBC makes traditional earnings-based multiples like P/E unreliable, as they penalize the company for non-cash charges that do not affect its cash-generating ability. The forward P/E of 12.4, which likely adjusts for expected earnings growth, is more informative but still may not capture the full cash flow picture. Investors should use P/FCF or EV/EBITDA (adjusted for SBC) to assess valuation, as these metrics better reflect the underlying economics of the business. The current P/FCF of 12.4 suggests that the market is pricing in modest growth, which may be conservative given the recent acceleration in revenue and cash flow.