Latest Ratios: P/E Ratio -6.3x · EV/EBITDA 2.4x · 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 | $2.5B | $1.9B | $1.7B | $1.7B | $1.6B | $801M | $558M | $1.6B | $752M | — | — |
| Enterprise Value | $3.4B | $2.8B | $2.8B | $2.9B | $2.1B | $1.7B | $1.5B | $2.3B | $1.3B | — | — |
| P/E Ratio → | -6.30 | — | — | 9.18 | 4.14 | — | — | 27.92 | 3.39 | — | — |
| P/S Ratio | 1.17 | 1.08 | 0.86 | 1.18 | 0.96 | 0.64 | 0.97 | 1.81 | 0.84 | — | — |
| P/B Ratio | 1.20 | 0.89 | 0.62 | 0.80 | 1.36 | 1.05 | 0.60 | 1.52 | 0.75 | — | — |
| P/FCF | 5.08 | 4.25 | 3.76 | — | 4.09 | 6.79 | — | — | 33.36 | — | — |
| P/OCF | 2.65 | 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 | 2.43 | 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 | 10.65 |
| 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 | 10.16 |
| 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 | 19.7% | 23.5% | 26.6% | — | 24.5% | 14.7% | — | — | 3.0% | — | — |
| Buyback Yield | 4.8% | 6.2% | 2.6% | 2.8% | 0.3% | 0.4% | 0.1% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 4.8% | 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 -6.3x. The historical average is 11.2x.
Talos Energy Inc.'s current EV/EBITDA is 2.4x. 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 -6.3x. 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-driven earnings volatility
Metrics are mathematically derived from official filings.
Low Multiples Reflect Earnings Skepticism
Based on TALO's reported figures, the stock trades at 3.12x EV/EBITDA and 5.46x P/FCF, well below peer EV/EBITDA levels of roughly 4.8x to 8.3x for SM, WTI, and TPVG, suggesting the market doubts the durability of current cash generation.
The trailing P/E of -5.26 is not meaningful given swings between large quarterly losses and profits, so valuation rests on EV/EBITDA and free cash flow yield. The forward EV/EBITDA of 2.14x implies the market expects a sharp EBITDA step-up or is discounting the recent peak as temporary. Pricing in line with CIVI at 1.89x points to a sector-wide commodity discount rather than a company-specific mispricing.
Margin Peak Versus Structural Earning Power
As reported in the quarterly income statements, TALO's operating margin reached 29.8% in 2026Q2 and 26.3% in 2026Q3 after running negative through much of 2025, implying the recent strength is cyclical rather than established earning power.
Gross margin jumped from single digits to roughly 76% in 2026 against a 2024 to 2025 range of about 4% to 21%, a level that likely reflects a favorable price window and cost base changes rather than a durable step-up. Net margin of -13.6% in 2026Q3 shows interest, depletion, and other below-the-line items absorb much of the operating gain. Free cash flow margin, which has been less volatile than net margin, may be a more reliable gauge of earning power across a full cycle.
ROIC Recovering From Sustained Weakness
Based on TALO's reported figures, ROIC improved from -5.7% in 2025Q2 to 5.5% in 2026Q2 before easing to 4.2% in 2026Q3, a level still modest for a capital-intensive upstream producer and below the 8.6% to 10.8% range seen at SM and CIVI.
The gap between ROIC and ROE in recent quarters suggests operating returns on the asset base are improving faster than returns to equity, consistent with a heavy debt load and accumulated deficit weighing on shareholders. With net PP&E at roughly 79% of total assets, returns depend heavily on sustaining production and realized pricing. Returns appear to be recovering but not yet compounding.
Debt Falling but Equity Base Thinning
As reported in the balance sheet history, TALO's debt-to-equity rose from 0.45 in 2025Q1 to 0.73 in 2026Q3 even as gross debt declined from about $1.6B to $1.4B, because equity contracted faster, pointing to a shrinking equity cushion.
Debt/EBITDA of 3.33x in the latest quarter is manageable but reached extreme levels in 2025Q2 when EBITDA collapsed, illustrating how quickly leverage metrics deteriorate in a commodity downturn. Interest coverage swings from negative readings to 4.15x in 2026Q1, making debt service comfort hard to judge from any single period. Investors should monitor whether absolute deleveraging continues to outpace equity erosion.
Current Ratio Improves but Remains Thin
Based on TALO's reported figures, the current ratio improved from 0.80 in 2024Q2 to 1.15 in 2026Q3, indicating current assets now exceed current liabilities, though the cushion is narrow and the quick ratio reported equal to the current ratio, so inventory dependence cannot be separated out.
Working capital changes ranged from roughly a $110M outflow to an $88M inflow across recent quarters, a magnitude large enough to erase a thin current ratio cushion within a single period. Upstream producers typically carry limited inventory, so liquidity is likely driven mainly by receivables and cash, tying it directly to commodity prices and collection timing. Under a sharp price decline the position could tighten quickly, warranting monitoring of receivables and near-term maturities.
Recent Margin Strength May Not Persist
As reported in the historical ratio data, TALO's 2026 gross margins of roughly 76% stand far above the 4% to 21% range seen across 2024 and 2025, raising the question of whether the recent peak can be sustained through a commodity price normalization.
The most commonly misapplied metric here is the trailing P/E, which is negative and not meaningful for a producer whose net income swings with commodity prices and non-cash depletion. EV/EBITDA and free cash flow yield, normalized over a full cycle, better reflect earning power and debt capacity. Investors should weigh normalized through-cycle cash generation over the latest two quarters before drawing conclusions about structural profitability.