Latest Ratios: P/E Ratio 16.4x · EV/EBITDA 21.0x · ROE 5.7%. (2018–2025 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 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.1B | $2.9B | $2.8B | $2.7B | $3.1B | $5.5B | — | — | — |
| Enterprise Value | $1.3B | $-2520254845 | $-2750945080 | $386M | $1.9B | $474M | — | — | — |
| P/E Ratio → | 16.38 | 3.33 | 5.02 | 5.00 | 2.11 | 2.71 | — | — | — |
| P/S Ratio | 3.98 | 0.81 | 1.14 | 2.15 | 0.57 | 0.65 | — | — | — |
| P/B Ratio | 0.89 | 0.18 | 0.17 | 0.17 | 0.20 | 0.41 | — | — | — |
| P/FCF | 14.21 | 2.89 | 3.31 | 16.12 | 6.82 | 3.31 | — | — | — |
| P/OCF | 12.69 | 2.58 | 3.26 | 13.49 | 6.27 | 3.05 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | -0.72 | -1.13 | 0.31 | 0.35 | 0.06 | — | — | — |
| EV / EBITDA | 21.02 | -6.13 | — | — | 1.64 | 0.20 | — | — | — |
| EV / EBIT | 27.03 | -2.46 | -4.18 | 0.65 | 1.05 | 0.18 | — | — | — |
| EV / FCF | — | -2.56 | -3.27 | 2.32 | 4.18 | 0.29 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.7% | 32.7% | 29.7% | 31.2% | 43.2% | 43.1% | 40.0% | 37.5% | 44.7% |
| Operating Margin | 9.1% | 9.1% | -4.4% | -39.9% | 19.9% | 27.0% | 0.3% | 3.6% | 1.7% |
| Net Profit Margin | 25.5% | 25.5% | 22.6% | 43.0% | 27.0% | 23.8% | -3.4% | 3.1% | -0.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 5.7% | 5.7% | 3.5% | 3.4% | 9.9% | 29.5% | -104.2% | 436.4% | -4.3% |
| ROA | 5.2% | 5.2% | 3.3% | 3.3% | 8.8% | 23.8% | -30.9% | 30.5% | -0.3% |
| ROIC | 2.3% | 2.3% | -0.7% | -2.7% | 7.0% | 39.8% | 11.4% | 463.9% | — |
| ROCE | 2.0% | 2.0% | -0.7% | -3.2% | 7.3% | 33.2% | 7.4% | 89.3% | 27.6% |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.01 | 0.01 | 0.00 | 0.01 | 0.01 | 0.01 | 0.68 | 4.15 | 0.07 |
| Debt / EBITDA | 0.43 | 0.43 | — | — | 0.08 | 0.08 | 4.30 | 0.91 | 0.22 |
| Net Debt / Equity | — | -0.34 | -0.35 | -0.15 | -0.08 | -0.37 | -0.29 | -0.40 | -10.22 |
| Net Debt / EBITDA | -13.07 | -13.07 | — | — | -1.03 | -2.14 | -1.84 | -0.09 | -30.10 |
| Debt / FCF | — | -5.45 | -6.57 | -13.80 | -2.64 | -3.02 | -0.03 | -0.02 | — |
| Interest Coverage | — | — | — | — | — | — | — | — | 20.66 |
Net cash position: cash ($5.5B) exceeds total debt ($176M)
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 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 5.70 | 5.70 | 10.84 | 13.44 | 14.18 | 5.10 | 1.55 | 1.91 | 1.07 |
| Quick Ratio | 5.55 | 5.55 | 10.68 | 13.22 | 14.01 | 4.88 | 1.41 | 1.54 | 0.92 |
| Cash Ratio | 5.18 | 5.18 | 9.90 | 12.14 | 13.66 | 4.69 | 1.37 | 1.31 | 0.70 |
| Asset Turnover | — | 0.20 | 0.14 | 0.08 | 0.33 | 0.52 | 6.15 | 7.47 | 1.25 |
| Inventory Turnover | 7.95 | 7.95 | 12.05 | 5.91 | 23.13 | 8.23 | 43.08 | 29.23 | 5.18 |
| Days Sales Outstanding | — | 42.01 | 84.55 | 194.45 | 4.07 | 1.11 | 0.80 | 2.90 | 53.02 |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.7% | 3.2% | 3.2% | 3.4% | 0.0% | 5.9% | — | — | — |
| Payout Ratio | 10.2% | 10.2% | 16.1% | 17.3% | 0.0% | 16.1% | — | 75.4% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.1% | 30.0% | 19.9% | 20.0% | 47.4% | 36.9% | — | — | — |
| FCF Yield | 7.0% | 34.6% | 30.2% | 6.2% | 14.7% | 30.2% | — | — | — |
| Buyback Yield | 1.3% | 6.4% | 21.2% | 37.2% | 16.4% | 2.3% | — | — | — |
| Total Shareholder Yield | 2.0% | 9.7% | 24.4% | 40.6% | 16.4% | 8.2% | — | — | — |
| Shares Outstanding | — | $1.2B | $1.3B | $1.3B | $1.3B | $1.4B | $1.6B | $1.6B | $1.6B |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying RLX stock.
RLX Technology Inc.'s current P/E ratio is 16.4x. The historical average is 3.6x. This places it at the 100th percentile of its historical range.
RLX Technology Inc.'s current EV/EBITDA is 21.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 0.9x.
RLX Technology Inc.'s return on equity (ROE) is 5.7%. The historical average is 47.5%.
Based on historical data, RLX Technology Inc. is trading at a P/E of 16.4x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
RLX Technology Inc.'s current dividend yield is 0.65% with a payout ratio of 10.2%.
RLX Technology Inc. has 32.7% gross margin and 9.1% operating margin.
RLX Technology Inc.'s Debt/EBITDA ratio is 0.4x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Regulatory tax escalation risk
Valuation Reflects Deep China Discount
RLX trades at a forward P/E of just 2.15, a stark discount to global tobacco peers like Philip Morris (3.74 PEG), suggesting the market prices in severe regulatory risk and a capped return profile rather than its reported 43.9% revenue growth.
The forward P/E of 2.15 is exceptionally low for a company with accelerating revenue growth, indicating the market views its earnings stream as either temporary or structurally impaired. This valuation implies a near-zero terminal growth rate, consistent with the thesis that RLX is being transformed into a regulated utility with capped returns. The P/B of 0.96 further suggests the market values the company's equity at less than its book value, a rare discount for a profitable, cash-rich firm.
Net Margin Masked by Non-Operating Income
RLX's 23.7% net margin in 2026Q2 significantly exceeds its 14.2% operating margin, a gap that appears to be driven by substantial interest income from its $4.8B cash balance rather than core operational efficiency.
The persistent and wide spread between net and operating margins indicates that core business profitability is materially lower than headline figures suggest. This earnings quality issue means the company's bottom line is highly sensitive to interest rate movements and the sustainability of its large cash position. Investors should focus on the operating margin trend, which has recovered from negative territory but remains modest for a consumer staples company, reflecting the permanent 36% excise tax burden.
ROIC Recovery Masks Structural Ceiling
RLX's ROIC has improved from negative levels to 0.9% in 2026Q2, but this remains far below the cost of capital and peer benchmarks like Altria's 48.3%, suggesting the business model may be structurally incapable of generating excess returns.
The recovery in ROIC from -0.3% in 2024Q1 to positive territory is a positive operational sign, driven by the swing to operating profitability. However, the absolute level of 0.9% is exceptionally low and indicates the company is barely covering its cost of capital. This pattern is consistent with a regulated entity where the state effectively sets a ceiling on profitability, preventing the kind of capital compounding seen in global tobacco giants.
Debt-Free Fortress Limits Return Potential
With a Debt/Equity ratio of just 0.02, RLX operates with virtually no financial leverage, a fortress balance sheet that provides immense safety but also suggests an inability or unwillingness to deploy capital for growth.
The near-zero leverage is a direct result of the company's massive cash hoard and likely reflects a defensive posture against regulatory uncertainty. While this eliminates refinancing risk, it also means the company is not using debt to enhance returns for shareholders. The lack of leverage, combined with low ROIC, points to a capital allocation strategy focused on preservation rather than growth, which may be appropriate given the volatile regulatory environment.
The Utility-Like Return on Equity Trap
The ratio most commonly misapplied to RLX is ROE, which at 1.4% appears to signal poor management, but actually reveals the core risk: the state may be structurally capping the company's return on its massive equity base.
Analysts often compare RLX's low ROE to global tobacco peers and conclude it is inefficient. However, this misapplies the metric because RLX's business model is fundamentally different. The low ROE is not a sign of operational failure but a potential outcome of state control over pricing, distribution, and taxation, which effectively turns the company into a regulated utility. The correct alternative metric is the spread between ROIC and the cost of capital, which is currently negative, confirming that the business is not creating economic value.