Latest Ratios: P/E Ratio -84.8x · EV/EBITDA N/A · ROE -54.0%. (2019–2026 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 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $116.0B | $65.0B | $60.4B | $64.2B | $49.9B | $82.8B | $78.4B | — | — |
| Enterprise Value | $116.0B | $64.9B | $60.4B | $62.7B | $49.2B | $82.0B | $77.8B | — | — |
| P/E Ratio → | -84.76 | — | — | — | — | — | — | — | — |
| P/S Ratio | 24.78 | 13.88 | 16.65 | 22.86 | 24.14 | 67.94 | 132.49 | — | — |
| P/B Ratio | 58.73 | 33.80 | 20.09 | 12.36 | 9.12 | 16.41 | 15.89 | — | — |
| P/FCF | 103.58 | 58.05 | 66.11 | 82.39 | 100.43 | 1020.44 | — | — | — |
| P/OCF | 94.97 | 53.22 | 62.92 | 75.66 | 91.38 | 751.92 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 13.87 | 16.67 | 22.34 | 23.81 | 67.22 | 131.45 | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | 57.97 | 66.17 | 80.49 | 99.04 | 1009.61 | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 67.2% | 67.2% | 66.5% | 68.0% | 65.3% | 62.4% | 59.0% | 56.0% | 46.5% |
| Operating Margin | -30.6% | -30.6% | -40.2% | -39.0% | -40.8% | -58.6% | -91.9% | -135.3% | -191.9% |
| Net Profit Margin | -28.4% | -28.4% | -35.5% | -29.8% | -38.6% | -55.8% | -91.1% | -131.6% | -184.2% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | -54.0% | -54.0% | -31.4% | -15.7% | -15.1% | -13.6% | -24.6% | — | — |
| ROA | -14.7% | -14.7% | -14.9% | -10.5% | -11.1% | -10.8% | -15.5% | -39.2% | -23.3% |
| ROIC | -43.9% | -43.9% | -32.2% | -19.3% | -14.1% | -12.6% | -21.1% | — | — |
| ROCE | -27.5% | -27.5% | -25.9% | -19.5% | -15.3% | -13.8% | -19.0% | -58.9% | -29.9% |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.42 | 1.42 | 0.89 | 0.06 | 0.05 | 0.04 | 0.04 | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.05 | 0.02 | -0.28 | -0.13 | -0.17 | -0.12 | — | — |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | -0.08 | 0.06 | -1.89 | -1.39 | -10.83 | — | — | — |
| Interest Coverage | -157.10 | -157.10 | -464.78 | — | — | — | — | — | — |
Net cash position: cash ($2.8B) exceeds total debt ($2.7B)
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 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.30 | 1.30 | 1.75 | 1.85 | 2.50 | 3.29 | 5.45 | 1.60 | 4.82 |
| Quick Ratio | 1.30 | 1.30 | 1.75 | 1.85 | 2.50 | 3.29 | 5.45 | 1.60 | 4.82 |
| Cash Ratio | 0.91 | 0.91 | 1.40 | 1.41 | 2.01 | 2.76 | 4.95 | 1.04 | 4.20 |
| Asset Turnover | — | 0.51 | 0.40 | 0.34 | 0.27 | 0.18 | 0.10 | 0.26 | 0.13 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 102.91 | 95.26 | 120.55 | 126.48 | 163.33 | 181.26 | 247.41 | 239.24 |
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 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — |
| FCF Yield | 1.0% | 1.7% | 1.5% | 1.2% | 1.0% | 0.1% | — | — | — |
| Buyback Yield | 0.8% | 1.3% | 3.2% | 0.9% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.8% | 1.3% | 3.2% | 0.9% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $337M | $333M | $328M | $319M | $300M | $288M | $277M | $238M |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying SNOW stock.
Snowflake Inc.'s current P/E ratio is -84.8x. This places it at the 50th percentile of its historical range.
Snowflake Inc.'s return on equity (ROE) is -54.0%. The historical average is -25.7%.
Based on historical data, Snowflake Inc. is trading at a P/E of -84.8x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Snowflake Inc. has 67.2% gross margin and -30.6% operating margin.
Key Metrics
Top Statement Risk
SBC-driven equity erosion and leverage shift
Metrics are mathematically derived from official filings.
Premium Valuation Amidst Growth Deceleration
Snowflake's forward P/E of 153.94 and P/S of 24.95, as reported in current market data, imply the market is pricing in a significant re-acceleration of growth and margin expansion that is not yet evident in the company's recent financial trajectory.
The valuation multiples are extreme relative to the company's own history of decelerating growth and persistent GAAP losses. The forward P/E of 153.94 is particularly telling, as it suggests the market is looking past the current -12.4% net margin and betting on a future earnings power that requires substantial operating leverage. Compared to peers like MongoDB (MDB) and Elastic (ESTC), which trade at lower or negative multiples, Snowflake's premium appears to be a bet on its unique consumption model and AI potential, but this leaves little room for execution missteps.
Gross Margin Stability Masks Operating Leverage Challenge
Snowflake's gross margin has remained stable in the 66-68% range over ten quarters, a level structurally lower than pure software peers due to its hyperscaler cost structure, while the operating margin has improved from -42.1% to -17.0%.
The stability in gross margin suggests the company has reached a steady state in its cost of revenue relative to its pricing power, but it also indicates a ceiling that will be difficult to break without a fundamental shift in its relationship with cloud providers. The significant improvement in operating margin is a positive signal of emerging operating leverage, driven by revenue growth outpacing the scaling of R&D and sales & marketing expenses. However, the -17.0% operating margin in 2027Q2 remains deeply negative, and the path to GAAP profitability is heavily dependent on controlling stock-based compensation, which continues to be a massive non-cash drag.
Negative Returns Reflect Investment Phase
Snowflake's ROIC has been consistently negative, ranging from -6.8% to -11.3% over the last ten quarters, indicating the company is still in a phase of heavy investment where capital deployed is not yet generating positive economic returns.
The negative ROIC is a direct consequence of the company's strategy to prioritize market share and product development over near-term profitability. The trend shows some improvement, with ROIC moving from -11.3% in 2026Q1 to -6.8% in 2027Q2, which suggests that the investments in R&D and customer acquisition are beginning to generate more revenue per dollar of invested capital. However, until the company achieves consistent GAAP profitability, this metric will remain negative and is not a useful measure of its long-term compounding potential.
Strategic Leverage Shift Funds Buybacks
Snowflake's debt-to-equity ratio has surged from 0.06 in 2025Q1 to 1.29 in 2027Q2, a dramatic shift that appears to be a strategic decision to use debt to fund share repurchases rather than operational needs.
This leverage shift is a significant change in the company's capital structure, moving from a net cash position to a leveraged one. The interest coverage ratio is negative, which is not unusual for a company with GAAP losses, but it highlights that debt service is currently being covered by operating cash flow, not earnings. The primary risk here is not immediate distress, as the company generates strong free cash flow, but rather the strategic choice to increase financial risk to offset dilution from stock-based compensation, which may not be a sustainable long-term strategy.
Liquidity Tightens with Leverage Build
Snowflake's current ratio has deteriorated from 1.71 in 2025Q1 to 0.94 in 2027Q2, indicating that current liabilities now exceed current assets, a shift that reduces the company's immediate financial flexibility.
The decline in the current ratio is a direct result of the increase in current debt used to fund buybacks. While a ratio below 1.0 can be a warning sign, it must be interpreted in the context of Snowflake's business model, which generates significant and predictable operating cash flow. The quick ratio is identical to the current ratio, confirming the company has minimal inventory, which is typical for a software-as-a-service business. The key question is whether this tighter liquidity position would become a constraint under a severe, prolonged downturn in customer consumption.
The Misleading Power of Free Cash Flow Margin
The most commonly misapplied ratio for Snowflake is its free cash flow margin, which can appear robust (e.g., 59.6% in 2026Q4) but is heavily inflated by the add-back of stock-based compensation, obscuring the true economic cost of employee dilution.
Investors often focus on Snowflake's positive free cash flow as a sign of health, but this metric is misleading because it adds back over $4 billion in stock-based compensation over the last ten quarters—a non-cash expense that represents a real economic cost to shareholders through dilution. A more accurate measure of cash generation would be to look at operating cash flow before SBC, or to analyze the company's ability to generate cash after accounting for the true cost of its workforce. The volatility in FCF margin (from 5.1% to 59.6%) also makes it an unreliable metric for assessing underlying operational performance, as it is heavily influenced by large, lumpy working capital movements related to customer credit purchases.