Smith & Nephew plc (SNN) Financial Ratios
30 years of historical data (1996–2025) · Healthcare · Medical - Devices
EV/EBITDA
↓
9.88
↓-21% vs avg
5yr avg: 12.47
30Y Low7.5·High24.3
P/FCF
↓
15.04
↓-64% vs avg
5yr avg: 41.37
30Y Low15.7·High158.4
P/B Ratio
↓
2.50
+15% vs avg
5yr avg: 2.17
30Y Low1.1·High10.1
ROE
↑
11.9%
↓+54% vs avg
5yr avg: 7.7%
30Y Low4%·High48%
Debt/EBITDA
↓
2.11
↓-26% vs avg
5yr avg: 2.85
30Y Low0.2·High4.4
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
SNN Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Smith & Nephew plc trades at 21.0x earnings, 32% below its 5-year average of 30.9x, sitting at the 30th percentile of its historical range. Compared to the Healthcare sector median P/E of 22.2x, the stock trades at a discount of 5%. On a free-cash-flow basis, the stock trades at 15.0x P/FCF, 64% below the 5-year average of 41.4x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $12.8B | $14.3B | $10.8B | $6.0B | $11.8B | $15.2B | $18.5B | $21.0B | $16.4B | $15.3B | $13.4B |
| Enterprise Value | $15.6B | $17.1B | $13.5B | $8.7B | $14.3B | $17.2B | $20.4B | $22.8B | $17.5B | $16.6B | $15.0B |
| P/E Ratio → | 21.01 | 22.78 | 26.15 | 22.73 | 53.78 | 28.85 | 41.34 | 35.35 | 24.59 | 19.89 | 17.09 |
| P/S Ratio | 2.08 | 2.32 | 1.85 | 1.07 | 2.26 | 2.92 | 4.05 | 4.09 | 3.34 | 3.21 | 2.88 |
| P/B Ratio | 2.50 | 2.71 | 2.05 | 1.14 | 2.24 | 2.73 | 3.50 | 4.09 | 3.36 | 3.30 | 3.39 |
| P/FCF | 15.04 | 16.77 | 17.78 | 32.92 | 106.96 | 32.40 | 37.50 | 27.68 | 28.01 | 21.45 | 29.39 |
| P/OCF | 9.97 | 11.12 | 10.92 | 9.80 | 25.14 | 17.32 | 19.73 | 18.01 | 17.57 | 14.05 | 15.82 |
P/E links to full P/E history page with 30-year chart
SNN EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Smith & Nephew plc's enterprise value stands at 9.9x EBITDA, 21% below its 5-year average of 12.5x. The Healthcare sector median is 14.1x, placing the stock at a 30% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.77 | 2.32 | 1.58 | 2.74 | 3.31 | 4.47 | 4.44 | 3.56 | 3.48 | 3.21 |
| EV / EBITDA | 9.88 | 10.82 | 10.89 | 9.18 | 16.56 | 14.92 | 24.26 | 17.11 | 13.25 | 11.91 | 11.71 |
| EV / EBIT | 15.53 | 17.00 | 20.51 | 20.38 | 43.83 | 25.39 | 63.49 | 27.88 | 20.49 | 17.55 | 13.26 |
| EV / FCF | — | 20.01 | 22.24 | 48.29 | 129.89 | 36.76 | 41.42 | 30.00 | 29.89 | 23.25 | 32.78 |
SNN Profitability
Margins and return-on-capital ratios measuring operating efficiency
Smith & Nephew plc earns an operating margin of 16.3%. Operating margins have expanded from 7.7% to 16.3% over the past 3 years, signaling improving operational efficiency. ROE of 11.9% is modest. ROIC of 9.4% represents adequate returns on invested capital.
Margins
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 | 68.0% | 68.0% | 69.6% | 68.8% | 70.5% | 70.4% | 69.4% | 74.0% | 73.5% | 73.8% | 72.8% |
| Operating Margin | 16.3% | 16.3% | 11.3% | 7.7% | 6.0% | 11.4% | 6.5% | 15.9% | 17.6% | 19.6% | 17.2% |
| Net Profit Margin | 10.1% | 10.1% | 7.1% | 4.7% | 4.3% | 10.1% | 9.8% | 11.7% | 13.5% | 16.1% | 16.8% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.9% | 11.9% | 7.9% | 5.0% | 4.1% | 9.7% | 8.6% | 12.0% | 13.9% | 17.8% | 19.8% |
| ROA | 6.0% | 6.0% | 4.1% | 2.6% | 2.1% | 4.8% | 4.4% | 6.9% | 8.3% | 10.1% | 10.8% |
| ROIC | 9.4% | 9.4% | 6.2% | 4.0% | 3.1% | 6.0% | 3.1% | 9.5% | 10.9% | 12.3% | 11.1% |
| ROCE | 11.4% | 11.4% | 7.9% | 5.3% | 3.7% | 6.5% | 3.5% | 11.4% | 13.2% | 14.9% | 13.6% |
SNN Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Smith & Nephew plc carries a Debt/EBITDA ratio of 2.1x, which is manageable (33% below the sector average of 3.1x). Net debt stands at $2.8B ($3.3B total debt minus $557M cash). Interest coverage of 6.4x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.63 | 0.63 | 0.63 | 0.59 | 0.55 | 0.60 | 0.70 | 0.40 | 0.30 | 0.31 | 0.42 |
| Debt / EBITDA | 2.11 | 2.11 | 2.68 | 3.24 | 3.33 | 2.89 | 4.39 | 1.54 | 1.11 | 1.04 | 1.29 |
| Net Debt / Equity | — | 0.52 | 0.51 | 0.53 | 0.48 | 0.37 | 0.37 | 0.34 | 0.23 | 0.28 | 0.39 |
| Net Debt / EBITDA | 1.75 | 1.75 | 2.18 | 2.92 | 2.92 | 1.77 | 2.30 | 1.33 | 0.84 | 0.92 | 1.21 |
| Debt / FCF | — | 3.24 | 4.46 | 15.37 | 22.93 | 4.37 | 3.92 | 2.33 | 1.88 | 1.79 | 3.39 |
| Interest Coverage | 6.43 | 6.43 | 3.91 | 3.06 | 3.94 | 7.41 | 4.76 | 12.54 | 14.63 | 13.94 | 11.78 |
SNN Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Smith & Nephew plc's current ratio of 2.57x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.25x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 1.77x to 2.57x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.57 | 2.57 | 2.89 | 1.77 | 2.25 | 2.08 | 2.76 | 2.06 | 2.10 | 2.03 | 1.88 |
| Quick Ratio | 1.25 | 1.25 | 1.33 | 0.72 | 0.96 | 1.21 | 1.76 | 1.03 | 1.15 | 1.06 | 0.95 |
| Cash Ratio | 0.35 | 0.35 | 0.40 | 0.13 | 0.20 | 0.61 | 1.04 | 0.18 | 0.25 | 0.13 | 0.07 |
| Asset Turnover | — | 0.59 | 0.56 | 0.56 | 0.52 | 0.48 | 0.41 | 0.55 | 0.61 | 0.61 | 0.64 |
| Inventory Turnover | 0.93 | 0.93 | 0.74 | 0.72 | 0.70 | 0.84 | 0.83 | 0.83 | 0.93 | 0.96 | 1.02 |
| Days Sales Outstanding | — | 84.42 | 75.83 | 69.66 | 71.88 | 68.00 | 72.92 | 76.86 | 82.17 | 80.89 | 77.24 |
SNN Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Smith & Nephew plc returns 6.4% to shareholders annually — split between a 2.5% dividend yield and 3.9% buyback yield. A payout ratio of 52.8% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 4.8% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
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 | 2.5% | 2.3% | 3.0% | 5.5% | 2.8% | 2.2% | 1.8% | 1.5% | 2.0% | 1.8% | 2.1% |
| Payout Ratio | 52.8% | 52.8% | 79.4% | 124.3% | 146.6% | 62.8% | 73.2% | 53.0% | 48.4% | 35.1% | 35.6% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.8% | 4.4% | 3.8% | 4.4% | 1.9% | 3.5% | 2.4% | 2.8% | 4.1% | 5.0% | 5.9% |
| FCF Yield | 6.6% | 6.0% | 5.6% | 3.0% | 0.9% | 3.1% | 2.7% | 3.6% | 3.6% | 4.7% | 3.4% |
| Buyback Yield | 3.9% | 3.5% | 0.0% | 0.0% | 1.3% | 0.0% | 0.1% | 0.3% | 0.3% | 0.3% | 2.7% |
| Total Shareholder Yield | 6.4% | 5.8% | 3.0% | 5.5% | 4.1% | 2.2% | 1.9% | 1.8% | 2.3% | 2.1% | 4.8% |
| Shares Outstanding | — | $436M | $438M | $218M | $438M | $439M | $438M | $438M | $438M | $438M | $446M |
Peer Comparison
Compare SNN with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 SNNYou | $13B | 21.0 | 9.9 | 15.0 | 68.0% | 16.3% | 11.9% | 9.4% | 2.1 |
 ZBH | $16B | 23.3 | 9.4 | 11.0 | 61.6% | 16.5% | 5.6% | 5.4% | 3.1 |
 SYK | $112B | 34.8 | 20.2 | 26.1 | 64.0% | 19.5% | 15.1% | 11.4% | 2.4 |
 BSX | $83B | 28.9 | 25.1 | 22.8 | 69.0% | 19.8% | 12.4% | 8.8% | 3.3 |
 HOLX | $17B | 30.5 | 17.4 | 18.4 | 61.0% | 17.4% | 11.1% | 9.4% | 2.6 |
 CNMD | $1B | 24.7 | 10.1 | 7.6 | 52.8% | 10.3% | 4.7% | 5.8% | 4.3 |
 MDT | $99B | 21.5 | 14.3 | 19.2 | 65.3% | 17.8% | 9.4% | 6.0% | 3.2 |
 JNJ | $541B | 38.8 | 18.8 | 27.3 | 69.1% | 24.9% | 20.1% | 20.7% | 1.2 |
 ABT | $150B | 11.3 | 15.7 | 23.6 | 50.8% | 16.3% | 30.9% | 9.9% | 1.5 |
 GMED | $12B | 22.8 | 19.4 | 20.5 | 67.4% | 16.3% | 12.3% | 8.9% | 0.2 |
 ATRC | $1B | -116.7 | 78.4 | 29.4 | 74.4% | -0.6% | -2.4% | -0.6% | 5.2 |
| Healthcare Median | — | 22.2 | 14.1 | 18.6 | 64.1% | -5.3% | -34.0% | -11.2% | 3.1 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonSNN — Frequently Asked Questions
Quick answers to the most common questions about buying SNN stock.
What is Smith & Nephew plc's P/E ratio?
Smith & Nephew plc's current P/E ratio is 21.0x. The historical average is 29.6x. This places it at the 30th percentile of its historical range.
What is Smith & Nephew plc's EV/EBITDA?
Smith & Nephew plc'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 13.7x.
What is Smith & Nephew plc's ROE?
Smith & Nephew plc's return on equity (ROE) is 11.9%. The historical average is 19.9%.
Is SNN stock overvalued?
Based on historical data, Smith & Nephew plc is trading at a P/E of 21.0x. This is at the 30th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Smith & Nephew plc's dividend yield?
Smith & Nephew plc's current dividend yield is 2.50% with a payout ratio of 52.8%.
What are Smith & Nephew plc's profit margins?
Smith & Nephew plc has 68.0% gross margin and 16.3% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Smith & Nephew plc have?
Smith & Nephew plc's Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.