Latest Ratios: P/E Ratio 46.6x · EV/EBITDA 10.3x · ROE 2.8%. (2000–2025 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 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $59.8B | $59.4B | $47.7B | $43.9B | $51.7B | $45.2B | $57.5B | $47.5B | $39.4B | $38.4B | $37.2B |
| Enterprise Value | $87.0B | $4.36T | $4.18T | $4.43T | $3.90T | $3.54T | $3.73T | $4.50T | $5.09T | $729.5B | $862.6B |
| P/E Ratio → | 46.61 | 0.29 | 0.44 | 0.30 | 0.16 | 0.20 | 0.15 | 1.07 | 0.59 | 0.21 | 0.32 |
| P/S Ratio | 1.98 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.01 | 0.02 | 0.02 | 0.02 |
| P/B Ratio | 1.22 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 |
| P/FCF | 11.72 | 0.07 | 0.06 | 0.19 | 0.15 | 0.05 | 0.07 | 0.11 | 0.20 | 0.15 | 0.25 |
| P/OCF | 9.52 | 0.06 | 0.05 | 0.06 | 0.05 | 0.04 | 0.06 | 0.07 | 0.12 | 0.10 | 0.14 |
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 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.91 | 0.91 | 1.04 | 0.97 | 0.99 | 1.17 | 1.37 | 2.43 | 0.41 | 0.50 |
| EV / EBITDA | 10.30 | 3.26 | 3.78 | 5.16 | 3.38 | 3.39 | 3.49 | 6.58 | 11.24 | 1.72 | 2.64 |
| EV / EBIT | 24.05 | 6.66 | 9.30 | 8.87 | 6.29 | 5.90 | 8.79 | 51.02 | 28.95 | 3.21 | 5.72 |
| EV / FCF | — | 5.40 | 4.88 | 18.80 | 11.36 | 3.78 | 4.81 | 9.96 | 26.18 | 2.92 | 5.78 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 51.1% | 51.1% | 65.5% | 66.4% | 69.1% | 69.0% | 68.9% | 66.9% | 68.5% | 72.0% | 67.7% |
| Operating Margin | 12.0% | 12.0% | 7.5% | 5.0% | 12.2% | 12.9% | 15.9% | 3.1% | 9.8% | 13.7% | 9.0% |
| Net Profit Margin | 4.3% | 4.3% | 2.4% | 3.4% | 7.9% | 6.4% | 11.8% | 1.3% | 5.2% | 10.6% | 6.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 2.8% | 2.8% | 1.5% | 2.1% | 5.3% | 4.2% | 7.6% | 0.9% | 3.0% | 9.4% | 5.8% |
| ROA | 1.4% | 1.4% | 0.7% | 1.0% | 2.3% | 1.8% | 2.9% | 0.3% | 1.2% | 4.4% | 2.8% |
| ROIC | 3.7% | 3.7% | 2.3% | 1.5% | 3.8% | 3.8% | 4.2% | 0.8% | 2.4% | 6.6% | 4.6% |
| ROCE | 4.6% | 4.6% | 2.8% | 1.8% | 4.4% | 4.2% | 4.7% | 0.9% | 2.8% | 7.6% | 5.2% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 0.65 | 0.67 | 0.69 | 0.76 | 0.90 | 1.08 | 1.11 | 0.49 | 0.59 |
| Debt / EBITDA | 3.67 | 3.67 | 4.09 | 5.64 | 3.79 | 4.16 | 4.34 | 7.45 | 12.70 | 2.33 | 3.50 |
| Net Debt / Equity | — | 0.55 | 0.60 | 0.60 | 0.61 | 0.62 | 0.71 | 0.94 | 0.98 | 0.34 | 0.42 |
| Net Debt / EBITDA | 3.22 | 3.22 | 3.74 | 5.11 | 3.33 | 3.35 | 3.43 | 6.51 | 11.15 | 1.63 | 2.52 |
| Debt / FCF | — | 5.32 | 4.82 | 18.61 | 11.21 | 3.73 | 4.74 | 9.86 | 25.98 | 2.77 | 5.53 |
| Interest Coverage | 1.73 | 1.73 | 3.27 | 470.12 | 5.30 | 4.90 | 3.24 | 60.51 | 3.65 | 7.12 | 6.49 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.27 | 1.27 | 1.01 | 1.11 | 0.97 | 1.21 | 1.53 | 1.13 | 1.21 | 1.46 | 0.92 |
| Quick Ratio | 0.70 | 0.70 | 0.52 | 0.58 | 0.57 | 0.81 | 1.10 | 0.79 | 0.82 | 1.17 | 0.76 |
| Cash Ratio | 0.24 | 0.24 | 0.16 | 0.20 | 0.22 | 0.41 | 0.57 | 0.30 | 0.29 | 0.51 | 0.28 |
| Asset Turnover | — | 0.31 | 0.32 | 0.28 | 0.29 | 0.27 | 0.25 | 0.26 | 0.15 | 0.43 | 0.40 |
| Inventory Turnover | 1.67 | 1.67 | 1.30 | 1.18 | 1.26 | 1.30 | 1.32 | 1.43 | 0.67 | 2.33 | 2.47 |
| Days Sales Outstanding | — | 67.24 | 57.78 | 59.72 | 61.78 | 74.08 | 92.76 | 87.05 | 130.38 | 88.40 | 93.73 |
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 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.5% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Payout Ratio | 162.7% | 162.7% | 280.3% | 199.3% | 88.1% | 123.3% | 75.4% | 638.7% | 131.0% | 75.9% | 123.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.1% | 345.1% | 226.1% | 328.1% | 612.7% | 509.4% | 654.3% | 93.1% | 170.7% | 486.6% | 309.3% |
| FCF Yield | 8.5% | 1362.2% | 1793.7% | 536.7% | 663.8% | 2074.5% | 1347.7% | 950.7% | 493.4% | 649.9% | 401.9% |
| Buyback Yield | 0.6% | 92.2% | 100.0% | 5.3% | 52.0% | 100.0% | 3.7% | 7.9% | 3.0% | 48.8% | 62.2% |
| Total Shareholder Yield | 4.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Shares Outstanding | — | $3.2B | $3.2B | $3.2B | $3.1B | $3.2B | $3.1B | $3.1B | $1.9B | $1.6B | $1.6B |
Includes 30+ ratios · 26 years · Updated daily
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Quick answers to the most common questions about buying TAK stock.
Takeda Pharmaceutical Company Limited's current P/E ratio is 46.6x. The historical average is 0.3x. This places it at the 100th percentile of its historical range.
Takeda Pharmaceutical Company Limited's current EV/EBITDA is 10.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 3.2x.
Takeda Pharmaceutical Company Limited's return on equity (ROE) is 2.8%. The historical average is 8.3%.
Based on historical data, Takeda Pharmaceutical Company Limited is trading at a P/E of 46.6x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Takeda Pharmaceutical Company Limited's current dividend yield is 3.46% with a payout ratio of 162.7%.
Takeda Pharmaceutical Company Limited has 51.1% gross margin and 12.0% operating margin. Operating margin between 10-20% is typical for established companies.
Takeda Pharmaceutical Company Limited's Debt/EBITDA ratio is 3.7x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Patent cliff and R&D execution
Valuation Reflects Conglomerate Discount
Takeda's forward P/E of 0.29 and EV/EBITDA of 10.08 appear anomalous, suggesting the market is pricing in severe earnings contraction or significant non-recurring distortions, as reported in recent financial statements.
The current valuation multiples, particularly the forward P/E, are not comparable to peers like Novo Nordisk (12.70 P/E) or AstraZeneca (12.44 P/E) and likely reflect the anticipated earnings impact from the Vyvanse patent cliff and the non-cash amortization burden from the Shire acquisition. The P/B ratio of 1.18 is low relative to innovative peers, indicating the market is not assigning significant value to Takeda's intangible assets or pipeline, which may present a value opportunity if the plasma business proves more durable than anticipated.
Margin Volatility Masks Core Earning Power
Takeda's operating margin has swung from -7.1% in 2024Q4 to 16.5% in 2026Q1, indicating that reported profitability is heavily influenced by non-recurring items and product mix rather than stable operational performance.
The significant volatility in operating and net margins, with net margin ranging from -9.8% to 11.2% over the past ten quarters, suggests that headline profitability metrics are unreliable for assessing core earning power. The gross margin of 66.7% in 2026Q1, while improved, remains structurally lower than pure-play innovative peers, reflecting the high variable cost base of the plasma-derived therapy segment. Investors should focus on Core Operating Profit to gauge underlying performance, as non-cash charges from the Shire deal continue to distort net income.
Low and Volatile Returns on Invested Capital
Takeda's ROIC has been volatile, ranging from -0.5% to 1.3% over the past ten quarters, indicating the company is not generating consistent returns above its cost of capital, as shown in the reported ratio data.
The consistently low ROIC, which has not exceeded 1.3% in any quarter, suggests that the significant capital invested in the business, including the goodwill from the Shire acquisition, is not generating commensurate returns. This trend is in stark contrast to peers like Novo Nordisk (36.2% ROIC) and AstraZeneca (14.9% ROIC), highlighting a potential structural issue in capital efficiency. The drivers appear to be a combination of lower-margin revenue mix from the plasma business and the drag from large intangible assets on the balance sheet.
Working Capital Intensity Drives Cash Flow Swings
Takeda's cash conversion cycle has been highly volatile, ranging from 205 to 282 days over the past ten quarters, indicating that working capital management is a primary driver of free cash flow volatility.
The extended cash conversion cycle, driven primarily by a very high days inventory outstanding (DIO) of 319 days in 2026Q1, reflects the capital-intensive nature of plasma collection and fractionation. This long cycle ties up significant capital and makes free cash flow highly sensitive to changes in inventory levels and supplier payment terms. The volatility in CCC, from 205 to 282 days, suggests that working capital management is not a stable source of cash generation but rather a source of quarterly unpredictability.
Debt Serviceability Improving but Absolute Load Remains High
Takeda's interest coverage ratio improved from -25.74 in 2024Q4 to 3.55 in 2026Q1, suggesting debt service is becoming more comfortable, though the absolute debt load from the Shire acquisition remains substantial.
The dramatic improvement in interest coverage, from deeply negative to a positive 3.55x, indicates that core operating profit is now sufficient to cover interest expenses, a positive trend for credit quality. However, the debt-to-equity ratio of 0.65 and the absolute debt level of ¥4.9T still represent a significant legacy burden. The improvement appears driven by a recovery in operating income rather than aggressive deleveraging, and investors should monitor whether this level of coverage can be sustained through the Vyvanse patent cliff.
The Misleading Nature of the P/E Multiple
The P/E ratio is the most commonly misapplied metric for Takeda, as it is heavily distorted by non-cash amortization from the Shire acquisition and volatile non-operating items, rendering it nearly meaningless for valuation.
The reported P/E of 45.12 is not comparable to peers and does not reflect the company's true earnings power because net income is suppressed by substantial, non-cash purchase price allocation (PPA) amortization. A more appropriate metric would be the EV/EBITDA multiple, which strips out these non-cash charges and provides a clearer view of operating cash flow generation. Furthermore, the forward P/E of 0.29 is likely a statistical anomaly based on projected earnings that include significant one-time items, making it an unreliable indicator of future valuation.