Latest Ratios: P/E Ratio -5.9x · EV/EBITDA 3.4x · ROE -20.1%. (2015–2025 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 | $2.8B | $1.9B | $1.7B | $1.7B | $1.6B | $801M | $558M | $1.6B | $752M | — | — |
| Enterprise Value | $3.6B | $2.8B | $2.8B | $2.9B | $2.1B | $1.7B | $1.5B | $2.3B | $1.3B | — | — |
| P/E Ratio → | -5.87 | — | — | 9.18 | 4.14 | — | — | 27.92 | 3.39 | — | — |
| P/S Ratio | 1.55 | 1.08 | 0.86 | 1.18 | 0.96 | 0.64 | 0.97 | 1.81 | 0.84 | — | — |
| P/B Ratio | 1.34 | 0.89 | 0.62 | 0.80 | 1.36 | 1.05 | 0.60 | 1.52 | 0.75 | — | — |
| P/FCF | 6.09 | 4.25 | 3.76 | — | 4.09 | 6.79 | — | — | 33.36 | — | — |
| P/OCF | 2.95 | 2.06 | 1.77 | 3.31 | 2.23 | 1.95 | 1.85 | 4.17 | 2.85 | — | — |
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 | — | 1.58 | 1.44 | 1.98 | 1.29 | 1.38 | 2.66 | 2.54 | 1.42 | — | — |
| EV / EBITDA | 3.39 | 2.61 | 2.16 | 3.00 | 1.77 | 2.07 | — | 3.88 | 2.20 | — | — |
| EV / EBIT | — | — | 24.41 | 9.60 | 4.31 | — | — | 19.14 | 3.58 | — | — |
| EV / FCF | — | 6.19 | 6.25 | — | 5.53 | 14.50 | — | — | 56.24 | — | — |
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 | 2.9% | 2.9% | 19.4% | 27.6% | 56.0% | 45.1% | -6.3% | 34.9% | 51.0% | 34.7% | -0.5% |
| Operating Margin | -5.9% | -5.9% | 8.8% | 14.4% | 44.6% | 30.1% | -73.2% | 23.5% | 28.4% | 11.0% | -32.3% |
| Net Profit Margin | -27.9% | -27.9% | -3.9% | 12.8% | 23.1% | -14.7% | -80.8% | 6.5% | 24.9% | -15.3% | -83.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -20.1% | -20.1% | -3.1% | 11.3% | 39.7% | -21.7% | -46.4% | 5.6% | 46.5% | — | -2978.6% |
| ROA | -8.5% | -8.5% | -1.4% | 4.8% | 13.1% | -6.5% | -17.2% | 2.3% | 11.9% | -5.1% | -15.9% |
| ROIC | -2.3% | -2.3% | 3.6% | 6.2% | 32.5% | 15.7% | -17.4% | 9.8% | 17.8% | 5.3% | -7.2% |
| ROCE | -2.0% | -2.0% | 3.6% | 6.3% | 31.9% | 16.5% | -18.3% | 9.9% | 16.8% | 4.7% | -7.1% |
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 | 0.57 | 0.57 | 0.45 | 0.55 | 0.52 | 1.29 | 1.09 | 0.70 | 0.65 | — | 100.37 |
| Debt / EBITDA | 1.15 | 1.15 | 0.94 | 1.25 | 0.50 | 1.18 | — | 1.27 | 1.14 | 3.14 | 3.90 |
| Net Debt / Equity | — | 0.41 | 0.41 | 0.54 | 0.48 | 1.20 | 1.05 | 0.62 | 0.51 | — | 95.75 |
| Net Debt / EBITDA | 0.82 | 0.82 | 0.86 | 1.21 | 0.46 | 1.10 | — | 1.12 | 0.89 | 3.00 | 3.72 |
| Debt / FCF | — | 1.94 | 2.50 | — | 1.44 | 7.72 | — | — | 22.87 | 31.87 | 216.42 |
| Interest Coverage | -2.70 | -2.70 | 0.62 | 1.73 | 3.95 | -0.39 | -3.33 | 1.23 | 3.93 | 0.22 | -1.96 |
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 | 1.30 | 1.30 | 0.91 | 0.73 | 0.61 | 0.57 | 0.55 | 0.79 | 1.10 | 0.45 | 0.81 |
| Quick Ratio | 1.30 | 1.30 | 0.91 | 0.73 | 0.61 | 0.57 | 0.55 | 0.79 | 0.79 | 0.45 | 0.81 |
| Cash Ratio | 0.56 | 0.56 | 0.15 | 0.06 | 0.07 | 0.12 | 0.08 | 0.23 | 0.37 | 0.10 | 0.17 |
| Asset Turnover | — | 0.32 | 0.32 | 0.30 | 0.54 | 0.45 | 0.20 | 0.35 | 0.36 | 0.33 | 0.21 |
| Inventory Turnover | — | — | — | — | — | — | — | — | 3.78 | 319.04 | 229.65 |
| Days Sales Outstanding | — | 66.24 | 74.77 | 69.50 | 46.84 | 64.37 | 110.99 | 52.55 | 62.93 | 79.14 | 95.21 |
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 | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | 10.9% | 24.2% | — | — | 3.6% | 29.5% | — | — |
| FCF Yield | 16.4% | 23.5% | 26.6% | — | 24.5% | 14.7% | — | — | 3.0% | — | — |
| Buyback Yield | 4.3% | 6.2% | 2.6% | 2.8% | 0.3% | 0.4% | 0.1% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 4.3% | 6.2% | 2.6% | 2.8% | 0.3% | 0.4% | 0.1% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $175M | $176M | $121M | $84M | $82M | $68M | $54M | $46M | $54M | $54M |
Includes 30+ ratios · 11 years · Updated daily
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Quick answers to the most common questions about buying TALO stock.
Talos Energy Inc.'s current P/E ratio is -5.9x. The historical average is 11.2x.
Talos Energy Inc.'s current EV/EBITDA is 3.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 2.5x.
Talos Energy Inc.'s return on equity (ROE) is -20.1%. The historical average is 1.5%.
Based on historical data, Talos Energy Inc. is trading at a P/E of -5.9x. Compare with industry peers and growth rates for a complete picture.
Talos Energy Inc. has 2.9% gross margin and -5.9% operating margin.
Talos Energy Inc.'s Debt/EBITDA ratio is 1.2x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Commodity price and hedging volatility
Metrics are mathematically derived from official filings.
Margin Volatility Masks Underlying Earning Power
Gross margin swung from -7.9% in 2025Q4 to 76.6% in 2026Q2, per reported financials, illustrating extreme commodity price sensitivity that obscures Talos's true operational profitability.
The dramatic swings in gross and operating margins across quarters—operating margin ranged from -64.4% to 29.8%—suggest that Talos's profitability is heavily dependent on realized oil and gas prices rather than cost control. The 2026Q2 recovery to a 76.6% gross margin appears to be a cyclical peak, not a sustainable run-rate, given the historical volatility. Investors should focus on mid-cycle margins or use a normalized commodity price scenario to assess earning power, as trailing margins are not indicative of future performance.
Return on Capital Remains Subdued
ROIC averaged roughly 0.5% over the last ten quarters, per financial statements, with a peak of 5.5% in 2026Q2, indicating that Talos is not consistently earning its cost of capital.
Despite a strong 2026Q2, ROIC has been negative or near zero in most quarters, reflecting the combination of volatile margins and a large asset base. The improvement in 2026Q2 to 5.5% is encouraging but still below typical energy sector returns, and the prior quarters' negative ROIC suggests that capital employed is not generating adequate returns during downturns. This pattern implies that Talos's returns are highly cyclical and may not compound over time unless commodity prices remain elevated.
Working Capital Efficiency Shows Mixed Signals
DSO improved from 77 days in 2025Q4 to 46 days in 2026Q2, per reported data, while DPO rose to 57 days, suggesting better receivables collection and delayed supplier payments.
The improvement in DSO and extension of DPO indicate that Talos is managing its working capital more aggressively, which likely contributed to the strong free cash flow margin of 29.9% in 2026Q2. However, the absence of DIO data limits a full assessment of the cash conversion cycle, and the volatility in DSO (ranging from 46 to 77 days) suggests that collection efficiency is not stable. The working capital swings noted in the cash flow analysis—ranging from -$111.5M to +$87.5M—highlight that these metrics can shift significantly quarter to quarter, so investors should monitor whether the recent improvement is sustainable.
Leverage Eases but Coverage Remains Thin
D/EBITDA improved from 6.55 in 2025Q3 to 2.91 in 2026Q2, per financial statements, but interest coverage of 4.15x in 2026Q2 remains modest and was negative in prior quarters.
The reduction in D/EBITDA reflects both debt repayment and a rebound in EBITDA, but the interest coverage ratio has been highly volatile, turning negative in several quarters (e.g., -9.20 in 2026Q1). This indicates that Talos's ability to service debt is closely tied to commodity prices, and the current coverage level, while improved, may not provide a comfortable cushion if prices fall. The balance sheet analysis noted total debt fell from $1.7B to $1.2B, which is positive, but the company's leverage metrics remain sensitive to the same price shocks that drive profitability.
Liquidity Buffer Strengthens Sharply
Current ratio improved from 0.78 in 2024Q1 to 1.61 in 2026Q2, per reported data, with cash rising to $577.6M, providing a robust buffer against commodity price shocks.
The improvement in the current ratio and the significant cash build indicate that Talos has strengthened its liquidity position, which is critical given the volatility in its operating cash flows. The quick ratio equals the current ratio, suggesting that inventory is not a significant component of current assets, which is typical for an E&P company. This liquidity buffer appears adequate to cover near-term obligations even if cash flows deteriorate, but the prior quarters' sub-1.0 ratios show that this is a recent development and may not be permanent if the company deploys cash into acquisitions or buybacks.
EV/EBITDA Misleads in Cyclical Downturns
EV/EBITDA of 3.26x appears cheap, per current multiples, but this metric is distorted by depressed EBITDA during trough quarters, making it unreliable for valuing Talos.
The EV/EBITDA multiple is commonly used in the energy sector, but for Talos, EBITDA has swung dramatically—from negative in 2025Q4 to positive in 2026Q2—so the current multiple may be artificially low or high depending on the quarter. A more appropriate approach would be to use a normalized EBITDA based on mid-cycle commodity prices or to focus on EV/2P reserves or EV/ daily production, which better reflect the underlying asset value. Investors should be cautious about relying on trailing EV/EBITDA for Talos, as it can lead to incorrect valuation conclusions during periods of extreme price volatility.