Latest Ratios: P/E Ratio 131.9x · EV/EBITDA 56.8x · ROE 3.1%. (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 | $2.9B | $2.0B | $3.5B | $4.7B | $4.2B | $5.7B | $5.0B | $2.9B | $1.8B | $2.2B | $2.0B |
| Enterprise Value | $2.8B | $1.9B | $3.5B | $4.7B | $4.1B | $5.6B | $4.7B | $2.8B | $1.7B | $2.2B | $1.9B |
| P/E Ratio → | 131.95 | 91.13 | 110.18 | 84.65 | 24.48 | 34.79 | 69.97 | 15.27 | 26.28 | 81.73 | 40.87 |
| P/S Ratio | 6.47 | 4.51 | 8.41 | 10.64 | 6.43 | 8.12 | 10.20 | 7.01 | 4.42 | 5.20 | 5.19 |
| P/B Ratio | 4.31 | 2.98 | 4.70 | 6.29 | 5.54 | 6.26 | 6.15 | 4.07 | 3.49 | 4.10 | 4.12 |
| P/FCF | 32.91 | 22.98 | 55.17 | 105.43 | 23.77 | 31.10 | 90.49 | 14.79 | 31.49 | 45.35 | 23.45 |
| P/OCF | 25.71 | 17.95 | 43.42 | 71.95 | 19.44 | 24.73 | 39.64 | 13.14 | 21.89 | 27.39 | 20.52 |
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 | — | 4.38 | 8.36 | 10.54 | 6.29 | 7.92 | 9.67 | 6.59 | 4.10 | 4.99 | 5.03 |
| EV / EBITDA | 56.77 | 39.27 | 66.69 | 64.68 | 18.81 | 26.53 | 47.89 | 11.48 | 21.35 | 26.23 | 27.30 |
| EV / EBIT | 130.96 | 92.62 | 113.88 | 102.05 | 22.33 | 31.63 | 66.99 | 57.66 | 30.63 | 35.71 | 39.84 |
| EV / FCF | — | 22.30 | 54.81 | 104.40 | 23.25 | 30.35 | 85.79 | 13.90 | 29.19 | 43.46 | 22.72 |
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 | 54.5% | 54.5% | 53.6% | 51.5% | 56.3% | 51.3% | 49.9% | 50.7% | 51.6% | 49.5% | 49.3% |
| Operating Margin | 4.8% | 4.8% | 4.3% | 7.9% | 27.7% | 24.9% | 14.4% | 51.6% | 13.4% | 13.3% | 12.4% |
| Net Profit Margin | 5.0% | 5.0% | 7.7% | 12.5% | 26.2% | 23.4% | 14.6% | 46.0% | 16.8% | 6.4% | 12.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 3.1% | 3.1% | 4.3% | 7.4% | 20.5% | 19.1% | 9.3% | 30.9% | 13.0% | 5.3% | 10.4% |
| ROA | 2.8% | 2.8% | 3.9% | 6.7% | 18.4% | 17.1% | 8.3% | 27.8% | 11.6% | 4.7% | 9.2% |
| ROIC | 2.4% | 2.4% | 1.9% | 3.8% | 18.8% | 19.8% | 9.6% | 34.7% | 9.9% | 9.8% | 9.4% |
| ROCE | 2.9% | 2.9% | 2.3% | 4.5% | 20.9% | 19.6% | 8.8% | 33.5% | 10.0% | 10.8% | 10.3% |
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 | — | — | 0.04 | 0.02 | 0.02 | 0.02 | — | — | — | — | — |
| Debt / EBITDA | — | — | 0.54 | 0.24 | 0.07 | 0.09 | — | — | — | — | — |
| Net Debt / Equity | — | -0.09 | -0.03 | -0.06 | -0.12 | -0.15 | -0.32 | -0.25 | -0.25 | -0.17 | -0.13 |
| Net Debt / EBITDA | -1.19 | -1.19 | -0.43 | -0.64 | -0.42 | -0.66 | -2.63 | -0.74 | -1.68 | -1.14 | -0.87 |
| Debt / FCF | — | -0.67 | -0.36 | -1.04 | -0.52 | -0.75 | -4.70 | -0.90 | -2.30 | -1.89 | -0.72 |
| Interest Coverage | — | — | — | — | — | — | — | — | — | — | — |
Net cash position: cash ($59M) exceeds total debt ($0)
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 | 6.51 | 6.51 | 9.29 | 10.47 | 8.99 | 9.50 | 9.62 | 10.72 | 6.87 | 7.14 | 5.32 |
| Quick Ratio | 4.14 | 4.14 | 6.30 | 7.13 | 6.67 | 8.12 | 7.97 | 8.93 | 5.20 | 6.02 | 4.44 |
| Cash Ratio | 3.55 | 3.55 | 5.42 | 6.38 | 6.06 | 7.33 | 7.18 | 8.14 | 4.73 | 5.54 | 4.18 |
| Asset Turnover | — | 0.57 | 0.51 | 0.54 | 0.78 | 0.69 | 0.54 | 0.52 | 0.71 | 0.70 | 0.70 |
| Inventory Turnover | 1.21 | 1.21 | 1.17 | 1.32 | 2.10 | 3.45 | 2.38 | 2.29 | 2.49 | 3.82 | 3.73 |
| Days Sales Outstanding | — | 15.02 | 23.67 | 12.05 | 11.68 | 22.26 | 26.84 | 21.06 | 9.72 | 14.20 | 6.85 |
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 | 1.6% | 2.4% | 1.3% | 0.9% | 1.0% | 0.6% | 0.5% | 0.7% | 1.0% | 0.7% | 0.7% |
| Payout Ratio | 213.5% | 213.5% | 142.8% | 79.0% | 24.3% | 19.8% | 35.2% | 10.6% | 26.9% | 60.2% | 31.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.8% | 1.1% | 0.9% | 1.2% | 4.1% | 2.9% | 1.4% | 6.6% | 3.8% | 1.2% | 2.4% |
| FCF Yield | 3.0% | 4.4% | 1.8% | 0.9% | 4.2% | 3.2% | 1.1% | 6.8% | 3.2% | 2.2% | 4.3% |
| Buyback Yield | 3.4% | 4.9% | 0.8% | 1.2% | 7.4% | 1.3% | 0.1% | 0.2% | 5.6% | 0.4% | 0.3% |
| Total Shareholder Yield | 5.0% | 7.3% | 2.1% | 2.1% | 8.4% | 1.9% | 0.6% | 0.9% | 6.6% | 1.1% | 1.1% |
| Shares Outstanding | — | $56M | $57M | $58M | $58M | $61M | $61M | $60M | $60M | $61M | $59M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying POWI stock.
Power Integrations, Inc.'s current P/E ratio is 131.9x. The historical average is 50.5x. This places it at the 100th percentile of its historical range.
Power Integrations, Inc.'s current EV/EBITDA is 56.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 29.1x.
Power Integrations, Inc.'s return on equity (ROE) is 3.1%. The historical average is 11.4%.
Based on historical data, Power Integrations, Inc. is trading at a P/E of 131.9x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Power Integrations, Inc.'s current dividend yield is 1.63% with a payout ratio of 213.5%.
Power Integrations, Inc. has 54.5% gross margin and 4.8% operating margin.
Key Metrics
Top Statement Risk
Revenue stagnation and margin volatility
Metrics are mathematically derived from official filings.
Premium Pricing for Stalled Growth
POWI trades at 163.7x trailing earnings and 70.7x EV/EBITDA, per reported figures, despite flat revenue and sub-10% operating margins, implying expectations of a sharp recovery.
The forward P/E of 45.9x suggests the market is pricing in a significant earnings rebound, yet revenue has been flat around $100M per quarter for two years. Compared to MPWR's 111.8x P/E, POWI's multiple is even more demanding given its lower ROIC and negative growth trajectory. Investors appear to be paying for optionality in GaN technology, but the current valuation leaves little room for execution missteps.
Margin Stability Masks Earnings Volatility
Gross margin held near 54% in Q2 2026, but operating margin swung from -1.2% to 10.0% over ten quarters, as per financial statements, indicating a high fixed-cost base.
The stability in gross margin suggests pricing power, but the wide swings in operating margin reveal that operating leverage works in reverse when revenue dips. Net margin has been erratic, even turning negative in Q3 2025, which points to non-operating items and tax anomalies clouding true earning power. The consistent FCF margin near 20% suggests that cash generation is more reliable than GAAP profitability, but the latter remains the basis for valuation.
Capital Returns Trapped in Single Digits
ROIC has averaged roughly 0.8% over the last ten quarters, per reported data, far below the cost of capital and peer MPWR's 22.2%, indicating value destruction.
Despite a debt-free balance sheet and ample cash, POWI's ROIC has been consistently below 1.5%, reflecting that the asset base is not generating sufficient returns. The low asset turnover of 0.15x compounds the issue, as the company holds significant inventory and receivables relative to sales. This suggests that the business is not compounding capital efficiently, and the high valuation multiples are not supported by underlying returns.
Inventory Glut Stretches Cash Cycle
Days inventory outstanding rose to 269 in Q2 2026, per SEC filings, pushing the cash conversion cycle to 234 days, up from 301 days in Q1 2024.
The extended DIO indicates that POWI is holding excess inventory, likely due to demand softness, which ties up cash and increases obsolescence risk. While DSO has improved to 16 days, the overall CCC remains elevated, suggesting working capital inefficiency. The company's ability to stretch DPO to 50 days provides some offset, but the inventory build is a concern that could pressure future cash flows if not resolved.
Fortress Liquidity with Minimal Debt
Current ratio stands at 7.07 and quick ratio at 4.70 as of Q2 2026, per balance sheet data, with zero debt, providing a substantial cushion against operational shocks.
POWI's liquidity position is exceptionally strong, with cash and short-term investments likely covering all near-term obligations many times over. The absence of debt eliminates refinancing risk, and the company has ample capacity to weather a prolonged downturn. However, the high current ratio also reflects inefficiency, as excess cash and inventory are not being deployed for growth or shareholder returns beyond dividends and buybacks.
Misapplied P/E on Cyclical Earnings
The trailing P/E of 163.7x is misleading because POWI's earnings are depressed and volatile, as per reported figures; a normalized earnings power approach is more appropriate.
Using a trailing P/E on a semiconductor company in a cyclical downturn overstates the valuation, as earnings are near trough levels. The forward P/E of 45.9x is more indicative, but still assumes a recovery that may not materialize. Investors should instead focus on EV/EBITDA or P/FCF, which are less distorted by non-cash charges and tax items, and compare against mid-cycle earnings power rather than current depressed results.