Latest Ratios: P/E Ratio 32.5x · EV/EBITDA 19.0x · ROE 20.7%. (1996–2025 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 | $46.1B | $36.6B | $24.9B | $11.7B | $10.1B | $8.9B | $10.6B | $10.7B | $15.7B | $19.3B | $34.8B |
| Enterprise Value | $59.9B | $50.4B | $39.7B | $28.6B | $28.9B | $30.2B | $34.8B | $36.1B | $42.9B | $50.8B | $69.6B |
| P/E Ratio → | 32.51 | 26.01 | — | — | — | 21.08 | — | — | — | — | 517.86 |
| P/S Ratio | 2.67 | 2.12 | 1.51 | 0.74 | 0.68 | 0.56 | 0.63 | 0.63 | 0.84 | 0.86 | 1.59 |
| P/B Ratio | 5.78 | 4.63 | 4.36 | 1.44 | 1.18 | 0.79 | 0.96 | 0.71 | 1.00 | 1.03 | 1.00 |
| P/FCF | 40.13 | 31.89 | 33.28 | 13.87 | 9.72 | 37.57 | 16.56 | 25.52 | 8.77 | 7.31 | 8.06 |
| P/OCF | 27.94 | 22.20 | 19.99 | 8.54 | 6.37 | 11.11 | 8.69 | 19.87 | 6.44 | 5.49 | 6.67 |
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 | — | 2.92 | 2.40 | 1.81 | 1.94 | 1.90 | 2.09 | 2.14 | 2.27 | 2.27 | 3.18 |
| EV / EBITDA | 18.96 | 15.97 | 52.52 | 18.04 | — | 9.90 | — | 28.19 | 209.16 | — | 19.09 |
| EV / EBIT | 27.77 | 23.58 | 11.78 | 70.64 | — | 9.80 | 11.39 | 13.28 | — | — | 50.76 |
| EV / FCF | — | 43.93 | 53.01 | 33.98 | 27.72 | 127.80 | 54.53 | 86.06 | 23.89 | 19.28 | 16.11 |
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 | 51.8% | 51.8% | 48.7% | 48.2% | 46.7% | 47.8% | 46.4% | 44.6% | 44.0% | 48.4% | 54.1% |
| Operating Margin | 12.5% | 12.5% | -1.8% | 2.7% | -14.7% | 10.8% | -21.4% | -2.6% | -8.7% | -78.1% | 9.8% |
| Net Profit Margin | 8.2% | 8.2% | -9.9% | -3.5% | -16.4% | 2.6% | -24.0% | -5.9% | -11.4% | -72.7% | 1.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 20.7% | 20.7% | -23.7% | -6.7% | -24.7% | 3.7% | -30.5% | -6.5% | -12.4% | -60.5% | 1.0% |
| ROA | 3.5% | 3.5% | -4.0% | -1.3% | -5.3% | 0.8% | -7.4% | -1.7% | -3.3% | -19.9% | 0.4% |
| ROIC | 7.7% | 7.7% | -1.0% | 1.2% | -5.5% | 3.8% | -7.1% | -0.8% | -2.6% | -21.8% | 3.1% |
| ROCE | 8.0% | 8.0% | -1.0% | 1.4% | -6.4% | 4.6% | -8.8% | -1.0% | -3.3% | -27.5% | 3.7% |
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 | 2.20 | 2.20 | 3.16 | 2.48 | 2.51 | 2.09 | 2.39 | 1.82 | 1.83 | 1.73 | 1.02 |
| Debt / EBITDA | 5.50 | 5.50 | 23.91 | 12.71 | — | 7.70 | — | 21.38 | 141.05 | — | 9.81 |
| Net Debt / Equity | — | 1.75 | 2.58 | 2.08 | 2.18 | 1.89 | 2.19 | 1.68 | 1.72 | 1.68 | 0.99 |
| Net Debt / EBITDA | 4.38 | 4.38 | 19.55 | 10.67 | — | 6.99 | — | 19.83 | 132.36 | — | 9.54 |
| Debt / FCF | — | 12.04 | 19.73 | 20.10 | 18.00 | 90.23 | 37.96 | 60.54 | 15.12 | 11.97 | 8.05 |
| Interest Coverage | 2.34 | 2.34 | 3.58 | 0.39 | -2.40 | 3.46 | 4.05 | 2.84 | -1.88 | -19.66 | 1.03 |
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 | 1.04 | 1.04 | 0.98 | 1.02 | 1.05 | 1.14 | 0.99 | 0.98 | 0.96 | 0.86 | 0.92 |
| Quick Ratio | 0.80 | 0.80 | 0.75 | 0.69 | 0.72 | 0.79 | 0.65 | 0.66 | 0.63 | 0.58 | 0.65 |
| Cash Ratio | 0.26 | 0.26 | 0.26 | 0.26 | 0.24 | 0.20 | 0.17 | 0.14 | 0.12 | 0.05 | 0.05 |
| Asset Turnover | — | 0.42 | 0.42 | 0.36 | 0.34 | 0.33 | 0.33 | 0.29 | 0.31 | 0.32 | 0.24 |
| Inventory Turnover | 2.62 | 2.62 | 2.82 | 2.04 | 2.07 | 2.17 | 2.03 | 2.11 | 2.23 | 2.35 | 2.03 |
| Days Sales Outstanding | — | 78.45 | 67.49 | 78.51 | 90.39 | 104.11 | 100.37 | 122.68 | 112.71 | 116.23 | 125.37 |
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 | — | — | — | — | — | — | — | 0.5% | 0.1% | 4.7% | 3.7% |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | 396.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.1% | 3.8% | — | — | — | 4.7% | — | — | — | — | 0.2% |
| FCF Yield | 2.5% | 3.1% | 3.0% | 7.2% | 10.3% | 2.7% | 6.0% | 3.9% | 11.4% | 13.7% | 12.4% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.5% | 0.1% | 4.7% | 3.7% |
| Shares Outstanding | — | $1.2B | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.1B | $1.0B | $1.0B | $961M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TEVA stock.
Teva Pharmaceutical Industries Limited's current P/E ratio is 32.5x. The historical average is 31.3x. This places it at the 64th percentile of its historical range.
Teva Pharmaceutical Industries Limited's current EV/EBITDA is 19.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 19.0x.
Teva Pharmaceutical Industries Limited's return on equity (ROE) is 20.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 4.6%.
Based on historical data, Teva Pharmaceutical Industries Limited is trading at a P/E of 32.5x. This is at the 64th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Teva Pharmaceutical Industries Limited has 51.8% gross margin and 12.5% operating margin. Operating margin between 10-20% is typical for established companies.
Teva Pharmaceutical Industries Limited's Debt/EBITDA ratio is 5.5x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
High leverage and legal overhang
Metrics are mathematically derived from official filings.
Margin Recovery Remains Uneven
Gross margin expanded from 46.4% in 2024Q1 to 52.0% in 2026Q2, yet operating margin collapsed to 3.6% in 2026Q2 from 19.7% in 2025Q3, per reported quarterly data.
The gross margin improvement suggests underlying pricing power or cost efficiencies in the generics portfolio, but the operating margin volatility indicates that these gains are not translating consistently to the bottom line. The 2026Q2 net loss of -13.9% margin, despite a 52.0% gross margin, points to significant non-operating charges or one-time items that distort true earning power. Investors should focus on operating margin trends excluding litigation and restructuring costs to assess the core profitability trajectory.
Return on Capital Remains Thin
ROIC has hovered near zero, turning slightly positive at 0.5% in 2026Q2, while ROE swung from -12.0% in 2024Q2 to 4.6% in 2026Q1, as per financial statements.
The near-zero ROIC indicates that Teva is barely earning its cost of capital, a concern given its high leverage. The improvement from negative ROIC in 2024 to marginally positive in 2026 suggests a fragile recovery, but the absolute level remains inadequate for a company with this risk profile. The thin returns are driven by low asset turnover (0.10) and volatile margins, implying that efficiency gains are not yet sufficient to generate meaningful shareholder value.
Working Capital Cycle Lengthens
Cash conversion cycle deteriorated from 100 days in 2026Q2 to 147 days in 2024Q1, driven by DIO rising to 146 days and DPO at 122 days, based on quarterly ratio data.
The lengthening cash conversion cycle indicates that Teva is holding inventory longer and taking longer to collect receivables, which ties up cash and increases financing needs. DSO has remained elevated around 76-80 days, while DPO has not kept pace with inventory growth, suggesting weaker supplier leverage. This inefficiency is particularly concerning given the company's thin liquidity position and high debt load, as it may force additional borrowing or strain cash flow.
Debt Burden Eases but Remains Heavy
Debt-to-equity improved from 3.16 in 2024Q4 to 2.17 in 2026Q2, yet interest coverage fell to 0.74 in 2026Q2 from 4.09 in 2025Q3, per reported figures.
The reduction in D/E suggests deleveraging progress, but the sharp drop in interest coverage to below 1.0 in 2026Q2 indicates that operating income is insufficient to cover interest expenses, a red flag for debt sustainability. The D/EBITDA ratio spiked to 42.29 in 2026Q2, reflecting depressed EBITDA, which may be temporary but warrants close monitoring. If operating margins do not recover, refinancing risk could escalate, especially with $16.9B in debt on the balance sheet.
Liquidity Buffer Thin and Stretched
Current ratio fell to 0.88 in 2026Q2 from 1.04 in 2025Q4, with quick ratio at 0.67, indicating potential difficulty covering short-term obligations, as per balance sheet data.
A current ratio below 1.0 suggests that current liabilities exceed current assets, which could force reliance on cash reserves or external financing. The quick ratio of 0.67 highlights that even excluding inventory, liquid assets are insufficient to cover near-term debts. While cash stands at $3.7B, the tight liquidity position combined with high leverage and volatile cash flows implies that any adverse event could strain the company's ability to meet obligations.
Misapplied Metric: EV/EBITDA
EV/EBITDA at 17.89 appears reasonable, but with D/EBITDA spiking to 42.29 in 2026Q2, this multiple obscures the true leverage burden, as per reported figures.
EV/EBITDA is commonly used to value pharmaceutical companies, but for Teva, it fails to capture the extreme volatility in EBITDA and the heavy debt load. The forward EV/EBITDA of 22.33 implies market expectations of significant EBITDA growth, yet the recent operating margin collapse suggests this may be optimistic. A more appropriate metric would be EV/EBIT or EV/(EBITDA - capex) to account for the capital intensity and the impact of litigation costs, which are not fully reflected in EBITDA. Investors should also consider net debt to EBITDA, which at 42.29 in 2026Q2 signals severe leverage that the standard EV/EBITDA multiple masks.