Latest Ratios: P/E Ratio 67.6x · EV/EBITDA 51.3x · ROE -7.4%. (1997–2026 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 | $9.6B | $7.0B | $4.8B | $1.3B | $2.1B | $4.7B | $4.7B | $3.2B | $3.3B | $2.4B | $2.2B |
| Enterprise Value | $9.9B | $7.3B | $5.2B | $2.5B | $3.2B | $4.6B | $4.6B | $3.2B | $3.2B | $2.3B | $2.1B |
| P/E Ratio → | 67.58 | — | — | — | 34.41 | 37.03 | 77.97 | 102.53 | 52.78 | 70.20 | 39.70 |
| P/S Ratio | 8.19 | 6.71 | 5.27 | 1.46 | 2.79 | 6.29 | 7.88 | 5.93 | 5.30 | 4.12 | 4.00 |
| P/B Ratio | 16.60 | 12.82 | 8.84 | — | 2.80 | 6.32 | 6.71 | 4.80 | 4.87 | 3.64 | 3.60 |
| P/FCF | 52.98 | 44.14 | 109.51 | — | 21.49 | 26.35 | 54.37 | 34.00 | 19.97 | 34.35 | 25.72 |
| P/OCF | 56.72 | 41.59 | 82.69 | — | 16.69 | 22.95 | 39.41 | 27.39 | 18.12 | 22.85 | 18.52 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.00 | 5.71 | 2.93 | 4.25 | 6.15 | 7.73 | 5.75 | 5.14 | 3.98 | 3.90 |
| EV / EBITDA | 51.34 | 42.12 | 46.78 | 50.52 | 16.43 | 25.67 | 41.62 | 34.84 | 23.30 | 18.22 | 19.75 |
| EV / EBIT | 74.18 | 54.98 | 84.21 | — | 20.25 | 32.03 | 61.61 | 61.98 | 36.32 | 29.47 | 35.15 |
| EV / FCF | — | 45.99 | 118.64 | — | 32.72 | 25.76 | 53.38 | 32.97 | 19.36 | 33.19 | 25.06 |
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 | 51.6% | 51.6% | 50.1% | 43.0% | 63.3% | 62.2% | 59.7% | 58.5% | 55.9% | 55.1% | 55.0% |
| Operating Margin | 12.7% | 12.7% | 6.8% | -3.9% | 21.0% | 19.2% | 12.5% | 9.3% | 14.2% | 13.5% | 11.1% |
| Net Profit Margin | -3.8% | -3.8% | -17.8% | -125.7% | 8.1% | 17.0% | 10.1% | 5.8% | 11.1% | 6.2% | 10.0% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -7.4% | -7.4% | -137.7% | -486.7% | 8.2% | 17.5% | 8.7% | 4.7% | 10.3% | 5.7% | 9.6% |
| ROA | -2.9% | -2.9% | -11.6% | -55.4% | 3.3% | 11.4% | 5.6% | 3.0% | 6.5% | 3.5% | 5.7% |
| ROIC | 11.2% | 11.2% | 4.9% | -1.8% | 9.6% | 17.1% | 9.4% | 6.6% | 11.4% | 10.5% | 8.1% |
| ROCE | 11.8% | 11.8% | 5.4% | -2.0% | 10.0% | 14.4% | 7.8% | 5.4% | 9.4% | 8.6% | 7.1% |
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 | 0.89 | 0.89 | 1.02 | — | 1.77 | 0.24 | 0.26 | 0.29 | 0.31 | 0.34 | 0.40 |
| Debt / EBITDA | 2.82 | 2.82 | 4.97 | 27.80 | 6.84 | 0.99 | 1.66 | 2.15 | 1.53 | 1.76 | 2.24 |
| Net Debt / Equity | — | 0.54 | 0.74 | — | 1.46 | -0.14 | -0.12 | -0.15 | -0.15 | -0.12 | -0.09 |
| Net Debt / EBITDA | 1.70 | 1.70 | 3.60 | 25.25 | 5.64 | -0.59 | -0.78 | -1.09 | -0.73 | -0.63 | -0.52 |
| Debt / FCF | — | 1.85 | 9.13 | — | 11.23 | -0.59 | -0.99 | -1.03 | -0.61 | -1.16 | -0.66 |
| Interest Coverage | 3.34 | 3.34 | 0.69 | -0.32 | 10.29 | 23.56 | 14.00 | 5.58 | 9.65 | 9.97 | 6.68 |
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 | 2.37 | 2.37 | 2.07 | 2.46 | 1.82 | 3.91 | 4.33 | 4.67 | 3.74 | 3.65 | 3.57 |
| Quick Ratio | 1.67 | 1.67 | 1.49 | 1.79 | 1.30 | 3.02 | 3.53 | 3.93 | 3.25 | 3.09 | 3.03 |
| Cash Ratio | 0.71 | 0.71 | 0.58 | 0.66 | 0.59 | 2.18 | 2.45 | 2.97 | 2.40 | 2.44 | 2.42 |
| Asset Turnover | — | 0.74 | 0.64 | 0.63 | 0.29 | 0.66 | 0.55 | 0.52 | 0.59 | 0.54 | 0.54 |
| Inventory Turnover | 2.60 | 2.60 | 2.77 | 3.41 | 1.34 | 2.45 | 2.74 | 3.11 | 4.35 | 3.71 | 3.71 |
| Days Sales Outstanding | — | 55.83 | 75.51 | 56.43 | 78.01 | 35.23 | 43.20 | 41.28 | 46.10 | 33.02 | 34.50 |
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 | 1.5% | — | — | — | 2.9% | 2.7% | 1.3% | 1.0% | 1.9% | 1.4% | 2.5% |
| FCF Yield | 1.9% | 2.3% | 0.9% | — | 4.7% | 3.8% | 1.8% | 2.9% | 5.0% | 2.9% | 3.9% |
| Buyback Yield | 2.3% | 3.1% | 0.0% | 0.5% | 2.4% | 2.8% | 1.5% | 2.2% | 3.5% | 0.6% | 0.0% |
| Total Shareholder Yield | 2.3% | 3.1% | 0.0% | 0.5% | 2.4% | 2.8% | 1.5% | 2.2% | 3.5% | 0.6% | 0.0% |
| Shares Outstanding | — | $88M | $72M | $64M | $64M | $66M | $66M | $67M | $68M | $68M | $66M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying SMTC stock.
Semtech Corporation's current P/E ratio is 67.6x. The historical average is 48.2x. This places it at the 76th percentile of its historical range.
Semtech Corporation's current EV/EBITDA is 51.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 26.4x.
Semtech Corporation's return on equity (ROE) is -7.4%. The historical average is -10.8%.
Based on historical data, Semtech Corporation is trading at a P/E of 67.6x. This is at the 76th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Semtech Corporation has 51.6% gross margin and 12.7% operating margin. Operating margin between 10-20% is typical for established companies.
Semtech Corporation's Debt/EBITDA ratio is 2.8x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Acquisition integration and goodwill overhang
Metrics are mathematically derived from official filings.
Premium Valuation on Forward Earnings
Semtech trades at a forward P/E of 79.88 and an EV/EBITDA of 49.64, suggesting the market is pricing in a significant earnings recovery and the long-term potential of its LoRa platform, as reported in recent financial statements.
The current forward multiples are elevated relative to historical norms for the analog semiconductor sector, indicating investors are looking past the current GAAP losses and focusing on the accelerating revenue growth and margin expansion trajectory. This valuation appears to be predicated on the successful integration of Sierra Wireless and the transition toward higher-margin IoT services, a narrative that requires sustained execution to justify the premium.
Gross Margin Strength vs. Net Loss
Gross margin has expanded to a robust 53.8% in 2027Q2, yet the company reported a net loss in several recent quarters, highlighting a significant disconnect between core product profitability and bottom-line results.
The strong gross margin indicates Semtech's differentiated product mix, particularly in Protection and high-end Signal Integrity, is commanding premium pricing. However, the persistent negative net margin, despite a positive operating margin, suggests substantial non-operating burdens—likely related to acquisition financing costs, amortization, or restructuring—that are obscuring the underlying earning power of the business.
ROIC Recovery Lags Margin Improvement
Despite gross margin expansion, ROIC has only recovered to 4.2% in 2027Q2, indicating that the company's capital base, inflated by acquisition-related goodwill, is not yet generating commensurate returns.
The modest ROIC, when compared to the 53.8% gross margin, underscores the dilutive effect of the large goodwill balance on the invested capital base. For the company to create value, it must demonstrate that the acquired assets can generate returns significantly above its cost of capital, a hurdle that remains unmet based on the current trajectory.
Working Capital Cycle Lengthens
The cash conversion cycle has expanded to 108 days in 2027Q2 from 141 days in 2025Q1, driven primarily by a significant increase in days inventory outstanding, which may signal a build-up of stock ahead of anticipated demand.
The lengthening CCC, particularly the rise in DIO to 108 days, warrants close monitoring. While this could be a strategic inventory build to support the accelerating revenue growth and secure supply, it also increases the risk of obsolescence and ties up cash, potentially masking underlying demand softness if sell-through does not materialize as expected.
Deleveraging Progress Tempered by Coverage
Semtech's debt-to-equity ratio has improved to 0.70 from over 1.0, but the interest coverage ratio of 28.35 in 2027Q2 appears strong only on a quarterly basis, masking the volatility seen in prior periods.
The rapid deleveraging is a positive development, reducing refinancing risk. However, the historical volatility in interest coverage, which dipped as low as 0.21 in 2025Q1, suggests that the company's ability to service debt is highly sensitive to earnings fluctuations. Investors should monitor whether the current coverage level is sustainable through the next business cycle.
The Misleading Power of Gross Margin
The gross margin is the ratio most commonly misapplied to Semtech, as its impressive 53.8% figure obscures the significant capital intensity and integration costs embedded in its post-acquisition business model.
Analysts often use gross margin as a proxy for pricing power and moat strength, which is valid for Semtech's core IP. However, in this case, it fails to account for the substantial goodwill and intangible assets on the balance sheet, which depress ROIC and ROE. A more appropriate metric for assessing true economic profit would be Return on Invested Capital (ROIC), which better reflects the returns generated on the entire capital base deployed to acquire and integrate the Sierra Wireless platform.