Latest Ratios: P/E Ratio 99.0x · EV/EBITDA 8.3x · ROE 38.9%. (2021–2025 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 |
|---|---|---|---|---|---|---|
| Market Cap | $15.7B | $13.9B | $11.5B | — | — | — |
| Enterprise Value | $19.8B | $18.0B | $18.7B | — | — | — |
| P/E Ratio → | 98.96 | 8.92 | 23.93 | — | — | — |
| P/S Ratio | 1.92 | 1.67 | 1.39 | — | — | — |
| P/B Ratio | 3.14 | 2.75 | 3.88 | — | — | — |
| P/FCF | — | — | 14.25 | — | — | — |
| P/OCF | 42.42 | 37.64 | 9.68 | — | — | — |
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 |
|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.17 | 2.27 | — | — | — |
| EV / EBITDA | 8.32 | 6.76 | 11.77 | — | — | — |
| EV / EBIT | 9.08 | 8.76 | 19.26 | — | — | — |
| EV / FCF | — | — | 23.26 | — | — | — |
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 |
|---|---|---|---|---|---|---|
| Gross Margin | 53.5% | 53.5% | 55.6% | 57.3% | 57.7% | 60.2% |
| Operating Margin | 26.2% | 26.2% | 12.6% | 20.6% | 20.8% | 23.0% |
| Net Profit Margin | 18.7% | 18.7% | 5.8% | 16.4% | 16.5% | 17.9% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| ROE | 38.9% | 38.9% | 6.6% | 11.5% | 11.3% | 12.1% |
| ROA | 10.8% | 10.8% | 3.4% | 9.8% | 9.7% | 10.4% |
| ROIC | 16.9% | 16.9% | 5.2% | 8.0% | 10.6% | 11.7% |
| ROCE | 19.0% | 19.0% | 8.6% | 13.8% | 13.6% | 14.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Debt / Equity | 1.00 | 1.00 | 2.71 | 0.71 | 0.01 | 0.01 |
| Debt / EBITDA | 1.89 | 1.89 | 5.03 | 3.69 | 0.04 | 0.05 |
| Net Debt / Equity | — | 0.82 | 2.45 | 0.70 | 0.00 | 0.00 |
| Net Debt / EBITDA | 1.56 | 1.56 | 4.56 | 3.60 | 0.01 | 0.01 |
| Debt / FCF | — | — | 9.00 | 4.99 | 0.02 | 0.01 |
| Interest Coverage | 5.94 | 5.94 | 2.65 | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Current Ratio | 1.23 | 1.23 | 1.20 | 1.46 | 1.70 | 1.56 |
| Quick Ratio | 0.89 | 0.89 | 0.84 | 0.96 | 1.04 | 0.98 |
| Cash Ratio | 0.28 | 0.28 | 0.28 | 0.11 | 0.05 | 0.06 |
| Asset Turnover | — | 0.58 | 0.57 | 0.59 | 0.60 | 0.58 |
| Inventory Turnover | 3.63 | 3.63 | 3.79 | 4.09 | 3.93 | 4.00 |
| Days Sales Outstanding | — | 45.33 | 54.35 | 58.47 | 52.57 | 52.58 |
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 |
|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|---|
| Earnings Yield | 1.0% | 11.2% | 4.2% | — | — | — |
| FCF Yield | — | — | 7.0% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $175M | $174M | $173M | $172M | $172M |
Includes 30+ ratios · 5 years · Updated daily
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Quick answers to the most common questions about buying SOLV stock.
Solventum Corporation's current P/E ratio is 99.0x. The historical average is 16.4x. This places it at the 100th percentile of its historical range.
Solventum Corporation's current EV/EBITDA is 8.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.3x.
Solventum Corporation's return on equity (ROE) is 38.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.1%.
Based on historical data, Solventum Corporation is trading at a P/E of 99.0x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Solventum Corporation has 53.5% gross margin and 26.2% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Solventum Corporation's Debt/EBITDA ratio is 1.9x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Volatile cash conversion and thin liquidity
Metrics are mathematically derived from official filings.
Trailing Multiples Overstate Earnings Power
Based on Solventum's reported figures, a trailing P/E near 99 against a forward P/E of 12.6 suggests trailing earnings are depressed or distorted, while EV/EBITDA of 8.3 times sits at a moderate level for a company with flat revenue growth of roughly 0.9 percent.
The gap between trailing and forward P/E implies the market is looking through recent earnings volatility, including the Q3 2026 EPS shortfall, toward a normalized earnings base. The EV/EBITDA multiple of 8.3 times appears more reasonable than the P/E, and investors should monitor whether forward EBITDA estimates hold given the ERP transition. Without a PEG ratio or free cash flow multiple available, valuation conclusions rest mainly on earnings forecasts that have not yet been validated by sustained organic growth.
Margin Stability Masks Quarterly Earnings Noise
Gross margin has held between 49.3 and 58.2 percent across recent quarters, while operating margin swung from 3.5 percent to 84.0 percent, indicating that reported operating profitability is heavily affected by non-recurring items rather than core operations.
The consistency of gross margin suggests pricing discipline and a stable product mix, which supports the view that underlying manufacturing economics are intact. The operating margin spikes, including the 84.0 percent print in Q4 2025, appear inconsistent with the underlying business and may reflect separation-related or other one-time items that warrant adjustment before use as an earnings power measure. Net margin of negative 0.6 percent in Q3 2026 against 60.4 percent in Q3 2025 reinforces that headline profitability is unreliable as a standalone indicator.
Deleveraging Progress Tied to Equity Rebuilding
Debt-to-equity has fallen from 2.90 in mid-2024 to 1.00 in late 2025, but debt-to-EBITDA of 92.5 times in Q3 2026 and interest coverage of 0.84 times in the same quarter suggest debt service has become strained on a quarterly basis.
The improvement in debt-to-equity appears driven more by equity recovery than by sustained debt reduction, so the leverage picture depends heavily on balance sheet presentation. Interest coverage falling below 1.0 times in Q3 2026 is a notable warning sign, although the swing from 18.0 times in Q3 2025 indicates the metric is sensitive to quarterly earnings timing. Investors should treat the debt-to-EBITDA reading as an indicator that quarterly EBITDA is currently too thin to comfortably service the roughly $5.3 billion debt load.
Working Capital Cushion Narrowing Under Pressure
The current ratio declined from 1.50 in Q3 2025 to 1.03 in Q3 2026, while the quick ratio fell from 1.14 to 0.72, suggesting the company's short-term liquidity buffer has thinned materially over the past year.
A quick ratio below 1.0 means the company relies on inventory conversion or ongoing receivables collection to meet current obligations, which appears less comfortable under a stress scenario. The cash decline referenced in the balance sheet data reinforces this view, as limited cash reserves leave less room to absorb a sudden earnings shortfall. The cash conversion cycle of 99 days in Q3 2026, up from 85 days a year earlier, suggests working capital is absorbing more cash and may warrant monitoring of receivables and inventory trends.
Cash Conversion Cycle Lengthening Steadily
Based on Solventum's reported figures, the cash conversion cycle expanded from 77 days in Q2 2025 to 99 days in Q3 2026, driven by rising days inventory outstanding that reached 111 days, which suggests slower inventory turnover is tying up working capital.
Days inventory outstanding climbing to 111 days in Q3 2026 from 84 days in Q2 2025 indicates inventory is moving more slowly, which may reflect demand softness or supply chain adjustments tied to the ERP transition. Days sales outstanding has stayed relatively stable near 47 to 67 days, so the deterioration appears concentrated in inventory rather than collections. The asset turnover ratio of roughly 0.14 to 0.16 is consistent with a capital-intensive, asset-heavy base, and the lengthening cycle appears to be eroding the working capital efficiency that supported earlier cash generation.
Cash Quality Obscured by Working Capital Timing
Based on Solventum's reported figures, the swing in working capital from negative $360M in Q1 2026 to positive $459M in Q3 2026 may indicate that headline cash results are driven more by timing than by durable generation, a dependency the ratio profile alone does not resolve.
Trailing P/E near 99 and a 60.4 percent net margin in Q3 2025 both illustrate how a single non-recurring item can dominate ratio readings, so the headline metrics may flatter or penalize the business depending on the quarter chosen. Investors may find that the most commonly misapplied measure here is the trailing P/E, which should be replaced with normalized earnings or forward EBITDA adjusted for separation costs. Further investigation of inventory build and receivables timing is warranted before treating the current cash position of roughly $451 million as a reliable measure of standalone liquidity.