Latest Ratios: P/E Ratio -6.2x · EV/EBITDA 22.1x · ROE -45.3%. (2023–2025 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 |
|---|---|---|---|---|
| Market Cap | $7.4B | $5.8B | — | — |
| Enterprise Value | $8.3B | $6.6B | — | — |
| P/E Ratio → | -6.17 | — | — | — |
| P/S Ratio | 3.60 | 2.79 | — | — |
| P/B Ratio | 4.61 | 3.53 | — | — |
| P/FCF | 20.77 | 16.11 | — | — |
| P/OCF | 18.72 | 14.52 | — | — |
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 |
|---|---|---|---|---|
| EV / Revenue | — | 3.19 | — | — |
| EV / EBITDA | 22.11 | 17.65 | — | — |
| EV / EBIT | 31.98 | — | — | — |
| EV / FCF | — | 18.42 | — | — |
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 |
|---|---|---|---|---|
| Gross Margin | 46.1% | 46.1% | 51.6% | 51.9% |
| Operating Margin | 12.5% | 12.5% | 21.3% | 23.7% |
| Net Profit Margin | -59.1% | -59.1% | 14.1% | 19.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| ROE | -45.3% | -45.3% | 10.1% | 18.4% |
| ROA | -28.6% | -28.6% | 7.8% | 13.6% |
| ROIC | 6.2% | 6.2% | 11.2% | 16.6% |
| ROCE | 7.6% | 7.6% | 13.7% | 20.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Debt / Equity | 0.70 | 0.70 | 0.02 | 0.02 |
| Debt / EBITDA | 3.07 | 3.07 | 0.13 | 0.09 |
| Net Debt / Equity | — | 0.51 | 0.02 | 0.02 |
| Net Debt / EBITDA | 2.22 | 2.22 | 0.13 | 0.09 |
| Debt / FCF | — | 2.32 | 0.17 | 0.11 |
| Interest Coverage | -36.66 | -36.66 | 5.96 | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Current Ratio | 0.84 | 0.84 | 1.16 | 1.10 |
| Quick Ratio | 0.58 | 0.58 | 0.63 | 0.61 |
| Cash Ratio | 0.27 | 0.27 | — | — |
| Asset Turnover | — | 0.54 | 0.46 | 0.70 |
| Inventory Turnover | 3.70 | 3.70 | 3.69 | 3.79 |
| Days Sales Outstanding | — | 50.34 | 49.77 | 50.12 |
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 |
|---|---|---|---|---|
| Dividend Yield | — | — | — | — |
| Payout Ratio | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Earnings Yield | — | — | — | — |
| FCF Yield | 4.8% | 6.2% | — | — |
| Buyback Yield | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $113M | $113M | $113M |
Includes 30+ ratios · 3 years · Updated daily
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10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying RAL stock.
Ralliant Corp's current P/E ratio is -6.2x. This places it at the 50th percentile of its historical range.
Ralliant Corp's current EV/EBITDA is 22.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.6x.
Ralliant Corp's return on equity (ROE) is -45.3%. The historical average is -5.6%.
Based on historical data, Ralliant Corp is trading at a P/E of -6.2x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Ralliant Corp has 46.1% gross margin and 12.5% operating margin. Operating margin between 10-20% is typical for established companies.
Ralliant Corp'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
Goodwill impairment and negative equity
Metrics are mathematically derived from official filings.
Margin Expansion Masks Underlying Volatility
Gross margin surged to 55.5% in 2026Q2 from 46.8% in 2026Q1, per latest quarterly data, yet operating margin remains below the 26.1% peak seen in 2024Q1, suggesting sustainability concerns.
The 2026Q2 gross margin improvement appears driven by a sharp COGS reduction, but SG&A rose to 33.2% of revenue, compressing operating leverage. Excluding the 2025Q4 impairment-driven net loss, net margins have ranged from 7.5% to 13.3%, indicating underlying profitability is stable but not expanding. Investors should monitor whether the gross margin gain is repeatable or a one-time benefit from cost actions.
Return on Capital Remains Subdued
ROIC improved to 2.5% in 2026Q2 from 1.9% in 2026Q1, but remains far below the 4.7% reported in 2024Q1, as per financial statements, indicating limited capital efficiency.
Despite the sequential improvement, ROIC is still below the cost of capital, suggesting value destruction. The low asset turnover of 0.15x, combined with a goodwill-heavy asset base, implies that returns are constrained by intangible assets rather than operational efficiency. The 2025Q4 impairment reduced equity, but ROIC has not recovered to prior levels, warranting close monitoring of capital allocation.
Working Capital Cycle Lengthens
Cash conversion cycle extended to 69 days in 2026Q2 from 62 days in 2025Q4, driven by DIO rising to 119 days, as reported in quarterly data, indicating slower inventory turnover.
The increase in days inventory outstanding suggests potential demand softness or inventory buildup, which could pressure future cash flows. DSO improved slightly to 46 days, but the overall CCC trend is unfavorable. The company's low capital intensity (CapEx ~1.6% of revenue) supports cash generation, but working capital inefficiencies may offset some of that benefit.
Leverage Rises as Equity Erodes
Debt-to-equity climbed to 0.75 in 2026Q2 from 0.39 in 2025Q3, while interest coverage fell to 1.91x, per balance sheet data, indicating tighter debt service capacity.
The increase in leverage is primarily due to equity erosion from the 2025Q4 impairment, not new borrowing, as total debt remained around $1.1B. Interest coverage of 1.91x is thin, and D/EBITDA of 21.88x is elevated, suggesting limited headroom for additional debt. The negative retained earnings of -$1.3B further weaken the equity base, making the balance sheet vulnerable to further shocks.
Liquidity Buffer Thin but Improving
Current ratio improved to 1.52 in 2026Q2 from 0.84 in 2025Q4, but quick ratio of 1.00 and cash of $270.9M against $1.1B debt indicate a modest buffer, per latest figures.
The improvement in the current ratio is positive, but the quick ratio near 1.0 suggests reliance on inventory for short-term obligations. Cash levels are low relative to total debt, and with interest coverage at 1.91x, the company may face refinancing challenges if earnings weaken. The 2025Q4 liquidity dip highlights vulnerability, though the recent recovery offers some comfort.
Misapplied Metric: EV/EBITDA
EV/EBITDA of 22.97x is misleading for RAL because EBITDA is distorted by non-cash impairments and goodwill, as seen in 2025Q4, making P/FCF or EV/EBIT more reliable.
The 2025Q4 net loss of $1.4B, likely a non-cash impairment, inflates EBITDA volatility and distorts EV/EBITDA. With goodwill at $1.6B (43% of assets), further impairments could make EBITDA unreliable. Investors should use EV/EBIT or P/FCF, which better capture operating performance and cash generation, as FCF margin of 17.6% in 2026Q2 indicates healthier cash flow than EBITDA suggests.