Latest Ratios: P/E Ratio 12.7x · EV/EBITDA 9.9x · ROE 21.5%. (2005–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $26.9B | $20.5B | $30.8B | $51.5B | $15.0B | $2.3B | $1.9B | $1.5B | $1.0B | $1.2B | $1.3B |
| Enterprise Value | $28.1B | $21.7B | $30.4B | $52.0B | $14.9B | $2.6B | $1.8B | $1.3B | $779M | $1.2B | $1.3B |
| P/E Ratio → | 12.74 | 9.00 | 29.17 | 48.77 | 12.40 | 3.54 | 6.64 | 17.75 | 13.86 | 26.63 | 19.00 |
| P/S Ratio | 0.69 | 0.52 | 1.40 | 3.44 | 2.11 | 0.44 | 0.36 | 0.45 | 0.29 | 0.37 | 0.51 |
| P/B Ratio | 2.00 | 1.41 | 4.89 | 9.50 | 7.61 | 1.59 | 1.72 | 1.41 | 1.07 | 1.47 | 1.60 |
| P/FCF | — | — | 20.10 | — | 23.95 | — | 29.06 | — | 4.22 | 20.76 | — |
| P/OCF | — | — | 18.56 | — | 22.62 | — | 15.35 | — | 3.82 | 14.65 | — |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.55 | 1.38 | 3.47 | 2.09 | 0.50 | 0.34 | 0.40 | 0.22 | 0.37 | 0.53 |
| EV / EBITDA | 9.94 | 7.67 | 23.19 | 41.62 | 18.67 | 7.11 | 4.83 | 11.78 | 6.41 | 10.61 | 11.93 |
| EV / EBIT | 10.13 | 7.26 | 23.91 | 42.16 | 19.43 | 7.62 | 5.17 | 15.44 | 8.09 | 13.17 | 14.14 |
| EV / FCF | — | — | 19.84 | — | 23.71 | — | 27.32 | — | 3.28 | 20.78 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 10.8% | 10.8% | 11.1% | 13.8% | 18.0% | 15.4% | 15.4% | 15.8% | 14.2% | 12.8% | 14.1% |
| Operating Margin | 7.1% | 7.1% | 5.7% | 8.1% | 10.7% | 6.5% | 6.5% | 2.6% | 2.8% | 2.8% | 3.8% |
| Net Profit Margin | 5.7% | 5.7% | 4.8% | 7.7% | 9.0% | 5.5% | 5.5% | 2.5% | 2.1% | 1.4% | 2.7% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 21.5% | 21.5% | 17.9% | 31.2% | 37.7% | 22.6% | 26.4% | 8.4% | 8.1% | 5.6% | 8.8% |
| ROA | 10.1% | 10.1% | 8.8% | 17.1% | 18.6% | 10.5% | 13.7% | 4.7% | 4.2% | 2.8% | 5.0% |
| ROIC | 19.2% | 19.2% | 15.9% | 23.4% | 31.7% | 18.2% | 26.6% | 7.9% | 9.3% | 8.4% | 9.6% |
| ROCE | 16.1% | 16.1% | 13.1% | 24.8% | 37.7% | 22.3% | 27.0% | 7.5% | 9.6% | 9.9% | 10.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.60 | 0.60 | 0.76 | 0.40 | 0.15 | 0.44 | 0.11 | 0.05 | 0.03 | 0.14 | 0.20 |
| Debt / EBITDA | 3.09 | 3.09 | 3.64 | 1.75 | 0.36 | 1.69 | 0.32 | 0.47 | 0.19 | 1.00 | 1.45 |
| Net Debt / Equity | — | 0.08 | -0.06 | 0.09 | -0.08 | 0.25 | -0.10 | -0.15 | -0.24 | 0.00 | 0.06 |
| Net Debt / EBITDA | 0.42 | 0.42 | -0.30 | 0.41 | -0.19 | 0.96 | -0.31 | -1.37 | -1.85 | 0.01 | 0.46 |
| Debt / FCF | — | — | -0.26 | — | -0.24 | — | -1.74 | — | -0.94 | 0.01 | — |
| Interest Coverage | 15.34 | 15.34 | 21.34 | 63.74 | 72.90 | 53.52 | 138.13 | 38.94 | 14.38 | 16.41 | 40.82 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.87 | 3.87 | 5.25 | 3.81 | 2.31 | 1.91 | 1.93 | 2.25 | 2.35 | 1.89 | 2.34 |
| Quick Ratio | 2.07 | 2.07 | 3.25 | 1.96 | 1.26 | 0.86 | 0.85 | 1.05 | 1.24 | 0.83 | 1.15 |
| Cash Ratio | 1.05 | 1.05 | 2.20 | 0.71 | 0.32 | 0.18 | 0.24 | 0.30 | 0.41 | 0.14 | 0.21 |
| Asset Turnover | — | 1.30 | 1.57 | 1.53 | 1.94 | 1.62 | 2.32 | 1.74 | 2.08 | 1.90 | 1.67 |
| Inventory Turnover | 2.70 | 2.70 | 4.18 | 2.98 | 4.04 | 2.84 | 4.22 | 3.30 | 4.48 | 3.43 | 3.36 |
| Days Sales Outstanding | — | 57.23 | 36.84 | 66.95 | 60.26 | 60.34 | 39.60 | 54.70 | 49.71 | 59.13 | 59.14 |
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 2026 | 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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 7.8% | 11.1% | 3.4% | 2.1% | 8.1% | 28.2% | 15.1% | 5.6% | 7.2% | 3.8% | 5.3% |
| FCF Yield | — | — | 5.0% | — | 4.2% | — | 3.4% | — | 23.7% | 4.8% | — |
| Buyback Yield | 0.0% | 0.0% | 0.6% | 0.0% | 1.0% | 0.4% | 6.9% | 0.0% | 0.0% | 0.0% | 1.4% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.6% | 0.0% | 1.0% | 0.4% | 6.9% | 0.0% | 0.0% | 0.0% | 1.4% |
| Shares Outstanding | — | $697M | $628M | $628M | $602M | $560M | $536M | $528M | $517M | $522M | $517M |
Includes 30+ ratios · 22 years · Updated daily
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Quick answers to the most common questions about buying SMCI stock.
Super Micro Computer, Inc.'s current P/E ratio is 12.7x. The historical average is 18.6x. This places it at the 25th percentile of its historical range.
Super Micro Computer, Inc.'s current EV/EBITDA is 9.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.3x.
Super Micro Computer, Inc.'s return on equity (ROE) is 21.5%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 18.0%.
Based on historical data, Super Micro Computer, Inc. is trading at a P/E of 12.7x. This is at the 25th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Super Micro Computer, Inc. has 10.8% gross margin and 7.1% operating margin.
Super Micro Computer, Inc.'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
Margin compression and governance concerns
Metrics are mathematically derived from official filings.
AI Premium vs. Hardware Reality
SMCI trades at 9.7x trailing earnings and 0.52x sales, a steep discount to peers like DELL (50.8x P/E) and NTAP (31.2x), per recent market data, suggesting the market prices it as a low-margin hardware vendor despite AI growth.
The PEG of 0.22 implies the market expects earnings growth to outpace the multiple, but this is based on a 46.6% revenue growth rate that may not be sustainable. The EV/EBITDA of 7.8x is below the peer average, reflecting the market's skepticism about margin durability. Investors should monitor whether the valuation re-rates upward if gross margins stabilize above 15% or if it compresses further if growth decelerates.
Margin Volatility Masks Underlying Economics
Gross margin swung from 6.3% in 2026Q2 to 17.5% in 2026Q4, as reported in financial statements, indicating extreme mix shifts between high-volume rack deals and enterprise solutions, with operating margin at 13.4% in Q4 reflecting operating leverage.
The 11.06% structural gross margin is typical of a hardware integrator, not a software company, and the 5.70% operating margin is vulnerable to component price spikes. The Q4 margin spike appears tied to a favorable product mix and possibly one-time items, as suggested by the sharp drop in stock-based compensation. Investors should focus on the sustainability of the 17.5% gross margin, which may normalize lower as large-scale deals reassert dominance.
ROIC Recovery After Dilutive Raise
ROIC improved to 7.8% in 2026Q4 from 2.1% in 2026Q1, according to recent SEC filings, but remains below the cost of capital, indicating that the $7B equity raise has temporarily depressed returns on the expanded capital base.
The 10-quarter trend shows ROIC oscillating between 1.7% and 10.1%, with the latest quarter benefiting from a surge in operating income. The capital raise increased equity to $14.5B, diluting ROE to 10.6% despite strong net income. For returns to compound, SMCI must sustain operating margins above 10% while efficiently deploying working capital, which has been a challenge given the negative cumulative operating cash flow.
Working Capital Cycle Stretches to 149 Days
Cash conversion cycle extended to 149 days in 2026Q4, up from 62 days in 2024Q3, as per balance sheet data, driven by DIO of 119 days and DSO of 60 days, indicating significant cash tied up in inventory and receivables.
The DIO of 119 days reflects the need to stockpile high-cost GPUs and components, which is a competitive necessity but strains liquidity. DPO of 29 days is low, suggesting limited supplier financing leverage, which contrasts with peers that often negotiate longer payment terms. The negative free cash flow in several quarters underscores the cash absorption of this model, and investors should monitor whether the cycle shortens as supply chains stabilize.
Debt Rises but Coverage Remains Adequate
Debt-to-equity rose to 0.60 in 2026Q4 from 0.37 in 2024Q3, as reported in financial statements, but interest coverage of 18.65x indicates comfortable debt service, though D/EBITDA of 5.86x is elevated versus historical levels.
The $8.7B total debt is largely used to finance working capital, not fixed assets, which is consistent with the asset-light model. The recent $7B equity raise has tempered leverage, but the D/EBITDA of 5.86x is above the 3.58x seen in 2024Q3, reflecting lower EBITDA relative to debt. While interest coverage is strong, the reliance on debt to fund inventory growth poses refinancing risk if credit markets tighten.
Liquidity Buffer Masks Cash Flow Strain
Current ratio improved to 3.87 in 2026Q4, with cash at $7.5B, according to recent filings, but cumulative operating cash flow over ten quarters is approximately -$7.7B, suggesting the liquidity position may be overstated.
The quick ratio of 2.07 indicates that even without selling inventory, SMCI can cover short-term obligations, but the negative operating cash flow highlights that the business is consuming cash to grow. The $5.17B in cash equivalents provides a buffer, but if inventory becomes obsolete due to rapid silicon innovation, the liquidity position could deteriorate. Investors should monitor the conversion of inventory to cash, as the DIO of 119 days is a red flag.
Valuation Discount vs. Margin Disadvantage
SMCI's P/E of 9.7x is far below DELL's 50.8x and NTAP's 31.2x, as per market data, but its net margin of 10.5% in 2026Q4 is higher than DELL's 5.2%, suggesting the discount may be unwarranted if margins hold.
Compared to HPE, SMCI has superior ROE (10.6% vs. 6.1%) and ROIC (7.8% vs. 3.4%), but its gross margin is structurally lower due to its integrator model. The market appears to penalize SMCI for its governance issues and cash flow volatility, which are not reflected in the peer set. If SMCI can sustain its recent margin improvement, the valuation gap may narrow, but the risk of margin reversion remains.
Misapplied P/E on Cyclical Hardware
The trailing P/E of 9.7x is commonly used to value SMCI, but it is misleading given the extreme earnings volatility and non-recurring items, as seen in the 2026Q4 margin spike, per financial statements.
A more appropriate metric is EV/EBITDA, which at 7.8x better captures the company's operating performance before depreciation and interest, but it still fails to account for the massive working capital swings. Investors should adjust for inventory build and use a normalized margin over a full cycle, as the current P/E may understate the true cost of capital. The PEG of 0.22 is also misleading because it assumes linear growth, which is unlikely in this cyclical industry.