Latest Ratios: P/E Ratio 17.5x · EV/EBITDA 10.0x · ROE 11.3%. (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 | $4.3B | $3.5B | $3.1B | $3.9B | $3.0B | $3.1B | $2.4B | $2.1B | $2.1B | $4.6B | $3.4B |
| Enterprise Value | $6.3B | $5.6B | $5.5B | $4.3B | $3.5B | $3.6B | $3.1B | $2.9B | $3.0B | $4.9B | $4.5B |
| P/E Ratio → | 17.48 | 16.03 | 9.32 | 7.60 | 9.89 | 14.32 | 268.38 | 10.20 | 8.78 | 41.21 | — |
| P/S Ratio | 0.79 | 0.65 | 0.61 | 0.76 | 0.67 | 0.80 | 0.80 | 0.49 | 0.47 | 1.21 | 0.77 |
| P/B Ratio | 1.84 | 1.69 | 1.71 | 2.35 | 2.51 | 2.81 | 2.65 | 2.29 | 2.46 | 3.86 | 2.24 |
| P/FCF | 13.24 | 10.99 | 16.53 | 11.82 | 19.56 | 13.33 | 15.20 | 33.15 | — | 41.79 | 11.19 |
| P/OCF | 9.69 | 8.04 | 9.58 | 8.54 | 11.35 | 10.62 | 10.85 | 12.33 | 22.51 | 29.91 | 9.02 |
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 | — | 1.03 | 1.06 | 0.83 | 0.80 | 0.93 | 1.00 | 0.67 | 0.66 | 1.30 | 1.02 |
| EV / EBITDA | 9.95 | 8.81 | 8.97 | 6.20 | 7.55 | 9.56 | 25.93 | 7.56 | 6.29 | 16.74 | — |
| EV / EBIT | 13.27 | 11.89 | 10.97 | 6.68 | 8.47 | 11.47 | 39.82 | 8.67 | 8.26 | 21.40 | — |
| EV / FCF | — | 17.32 | 28.86 | 12.94 | 23.25 | 15.48 | 19.03 | 45.11 | — | 45.06 | 14.96 |
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 | 19.4% | 19.4% | 20.8% | 22.8% | 19.7% | 19.5% | 17.5% | 20.4% | 21.3% | 20.2% | 17.5% |
| Operating Margin | 8.8% | 8.8% | 10.3% | 12.4% | 9.5% | 8.4% | 2.2% | 7.7% | 9.1% | 6.0% | -3.2% |
| Net Profit Margin | 4.1% | 4.1% | 6.5% | 10.1% | 6.8% | 5.7% | -0.3% | 1.2% | 2.5% | 3.4% | -4.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 11.3% | 11.3% | 19.1% | 36.3% | 26.2% | 21.8% | -1.1% | 6.1% | 11.1% | 9.5% | -10.3% |
| ROA | 3.7% | 3.7% | 7.2% | 15.4% | 10.0% | 7.5% | -0.3% | 1.6% | 3.3% | 3.0% | -3.3% |
| ROIC | 8.6% | 8.6% | 12.7% | 25.2% | 18.8% | 15.6% | 3.2% | 14.7% | 19.0% | 8.1% | -3.6% |
| ROCE | 9.9% | 9.9% | 14.7% | 27.6% | 20.6% | 15.4% | 3.0% | 14.6% | 17.6% | 7.6% | -3.6% |
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 | 1.34 | 1.34 | 1.48 | 0.44 | 0.73 | 0.69 | 1.39 | 1.40 | 1.42 | 0.83 | 1.04 |
| Debt / EBITDA | 4.44 | 4.44 | 4.47 | 1.07 | 1.85 | 2.03 | 10.85 | 3.40 | 2.58 | 3.34 | — |
| Net Debt / Equity | — | 0.97 | 1.27 | 0.22 | 0.47 | 0.45 | 0.67 | 0.83 | 0.99 | 0.30 | 0.75 |
| Net Debt / EBITDA | 3.22 | 3.22 | 3.83 | 0.54 | 1.20 | 1.32 | 5.22 | 2.01 | 1.80 | 1.22 | — |
| Debt / FCF | — | 6.33 | 12.33 | 1.12 | 3.70 | 2.14 | 3.83 | 11.96 | — | 3.27 | 3.77 |
| Interest Coverage | 2.65 | 2.65 | 5.58 | 10.16 | 8.47 | 6.12 | 1.17 | 3.82 | 4.92 | 3.42 | -1.65 |
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 | 2.30 | 2.30 | 2.16 | 2.01 | 1.96 | 1.94 | 2.60 | 2.32 | 1.99 | 2.30 | 1.92 |
| Quick Ratio | 1.36 | 1.36 | 1.09 | 0.95 | 0.97 | 1.05 | 1.75 | 1.34 | 1.00 | 1.36 | 1.31 |
| Cash Ratio | 0.65 | 0.65 | 0.36 | 0.33 | 0.30 | 0.29 | 0.92 | 0.61 | 0.30 | 0.61 | 0.30 |
| Asset Turnover | — | 0.88 | 0.89 | 1.43 | 1.42 | 1.36 | 1.01 | 1.36 | 1.30 | 1.10 | 0.89 |
| Inventory Turnover | 3.94 | 3.94 | 3.54 | 3.35 | 3.59 | 3.85 | 4.16 | 4.09 | 2.93 | 3.12 | 4.29 |
| Days Sales Outstanding | — | 49.15 | 45.78 | 38.82 | 45.23 | 47.68 | 56.52 | 40.10 | 49.05 | 55.79 | 42.10 |
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 | 1.2% | 1.3% | 1.5% | 1.1% | 1.2% | 1.1% | 0.3% | 1.5% | 1.4% | 0.6% | 0.9% |
| Payout Ratio | 20.4% | 20.4% | 13.7% | 8.3% | 11.9% | 15.2% | — | 57.7% | 26.4% | 22.9% | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.7% | 6.2% | 10.7% | 13.2% | 10.1% | 7.0% | 0.4% | 9.8% | 11.4% | 2.4% | — |
| FCF Yield | 7.6% | 9.1% | 6.0% | 8.5% | 5.1% | 7.5% | 6.6% | 3.0% | — | 2.4% | 8.9% |
| Buyback Yield | 1.3% | 1.6% | 1.6% | 1.6% | 3.4% | 0.1% | 2.3% | 0.3% | 20.2% | 20.2% | 2.4% |
| Total Shareholder Yield | 2.5% | 2.9% | 3.0% | 2.7% | 4.6% | 1.2% | 2.6% | 1.8% | 21.6% | 20.9% | 3.3% |
| Shares Outstanding | — | $66M | $68M | $68M | $69M | $71M | $70M | $72M | $77M | $95M | $108M |
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Quick answers to the most common questions about buying TEX stock.
Terex Corporation's current P/E ratio is 17.5x. The historical average is 20.3x. This places it at the 68th percentile of its historical range.
Terex Corporation's current EV/EBITDA is 10.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.8x.
Terex Corporation's return on equity (ROE) is 11.3%. The historical average is 15.7%.
Based on historical data, Terex Corporation is trading at a P/E of 17.5x. This is at the 68th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Terex Corporation's current dividend yield is 1.17% with a payout ratio of 20.4%.
Terex Corporation has 19.4% gross margin and 8.8% operating margin.
Terex Corporation's Debt/EBITDA ratio is 4.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Revenue volatility and margin compression
Metrics are mathematically derived from official filings.
Deep Value Despite Earnings Volatility
TEX trades at 0.90x sales and 10.89x EV/EBITDA, with a forward P/E of 13.32, according to recent market data, suggesting the market prices in continued margin recovery.
The forward P/E of 13.32 implies the market expects earnings to nearly double from TTM levels, which aligns with the 2026Q2 revenue surge but may underappreciate the historical margin instability. The PEG of 0.22 is misleadingly low because it likely uses a near-term growth rate that is unsustainable; investors should compare this to the peer average forward P/E of roughly 15x to gauge relative value.
Margin Recovery Still Below Prior Peaks
Gross margin rebounded to 19.8% in 2026Q2 from 11.9% in 2026Q1, as per quarterly reports, yet remains below the 23.8% peak in 2024Q2, indicating incomplete recovery.
Operating margin of 8.4% in 2026Q2 is still well below the 14.0% achieved in 2024Q2, suggesting that the recent revenue surge has not fully translated into operating leverage. The erratic net margin, swinging from -5.1% to 4.9% within two quarters, underscores that TTM profitability is not representative of run-rate earning power; investors should focus on normalized margins over a full cycle.
ROIC Recovery but Still Subpar
ROIC improved to 2.4% in 2026Q2 from -1.1% in 2026Q1, as reported in financial statements, but remains far below the 6.8% seen in 2024Q2, indicating capital efficiency has not fully recovered.
The sharp decline in ROIC from 6.8% in 2024Q2 to negative in 2026Q1 was driven by both margin compression and a doubling of invested capital from acquisitions. Even with the recent recovery, ROIC of 2.4% is below the cost of capital, suggesting value destruction; the company must demonstrate that the acquisition-driven asset base can generate returns above its cost of capital.
Working Capital Cycle Lengthens
Cash conversion cycle extended to 78 days in 2026Q1 from 89 days in 2024Q1, as per quarterly data, driven by higher DIO and DSO, indicating less efficient working capital management.
The CCC has been volatile, peaking at 108 days in 2024Q3 and improving to 78 days in 2026Q1, but the recent increase in DSO to 44 days and DIO to 81 days suggests that the revenue surge is consuming cash. Asset turnover has declined from 0.37 in 2024Q2 to 0.22 in 2026Q2, reflecting the larger asset base from acquisitions; investors should monitor whether this efficiency metric improves as integration progresses.
Rapid Deleveraging After Acquisition Spike
Debt-to-equity fell from 1.34 in 2025Q4 to 0.00 in 2026Q2, as per balance sheet data, while interest coverage turned positive at 3.74, indicating a swift reduction in leverage.
The leverage spike in 2025Q4 was likely tied to acquisition financing, but the subsequent drop to zero debt is dramatic and may reflect a one-time repayment or reclassification. Interest coverage of 3.74 in 2026Q2 is still thin relative to the 12.16 seen in 2024Q2, suggesting that the company's earnings are not yet robust enough to comfortably service debt if it were to re-lever.
Liquidity Cushion Thins Despite Ratio
Current ratio improved to 1.82 in 2026Q2, but cash dropped to $407M from $772M in 2025Q4, as per balance sheet data, indicating a tighter liquidity position.
The current ratio of 1.82 appears healthy, but the quick ratio of 1.82 in 2026Q2 (versus 0.88 in 2026Q1) suggests that inventory levels may be low relative to current liabilities, which could be a data anomaly. The significant cash drawdown, combined with a goodwill-heavy asset base, implies that the company may have limited buffer to absorb a demand shock; investors should monitor cash generation in coming quarters.
Misapplied P/E on Cyclical Earnings
The TTM P/E of 19.92 is misleading for TEX because earnings are highly cyclical and volatile, as evidenced by the swing from a net loss in 2026Q1 to a profit in 2026Q2.
Using a trailing P/E for a company with such erratic earnings can lead to incorrect valuation conclusions; the forward P/E of 13.32 is more informative but still depends on the sustainability of the recent revenue surge. A better metric is EV/EBITDA, which at 10.89 is closer to peer levels, but investors should adjust for the goodwill-heavy balance sheet and potential impairment risk, as a 10% goodwill write-down would significantly impact equity.