Latest Ratios: P/E Ratio 9.6x · EV/EBITDA 10.5x · ROE 10.2%. (1997–2026 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $225.4B | $268.6B | $231.5B | $340.1B | $193.5B | $250.3B | $221.7B | $170.7B | $172.2B | $195.2B | $166.0B |
| Enterprise Value | $419.2B | $30.95T | $30.04T | $27.49T | $22.06T | $20.63T | $20.60T | $343.1B | $16.75T | $16.49T | $16.33T |
| P/E Ratio → | 9.63 | 0.07 | 0.05 | 0.07 | 0.08 | 0.09 | 0.10 | 0.08 | 0.09 | 0.08 | 0.09 |
| P/S Ratio | 0.70 | 0.01 | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| P/B Ratio | 0.95 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.86 | 0.01 | 0.01 | 0.01 |
| P/FCF | 60.29 | 0.45 | — | — | — | — | — | — | 6.22 | 0.32 | — |
| P/OCF | 6.15 | 0.05 | 0.06 | 0.08 | 0.07 | 0.07 | 8.62 | 0.07 | 0.05 | 0.05 | 0.05 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.61 | 0.63 | 0.61 | 0.59 | 0.66 | 0.76 | 0.01 | 0.55 | 0.56 | 0.59 |
| EV / EBITDA | 10.53 | 4.91 | 4.26 | 3.69 | 4.63 | 4.28 | 5.36 | 0.09 | 3.93 | 3.99 | 4.53 |
| EV / EBIT | 17.62 | 5.94 | 4.62 | 3.91 | 5.94 | 5.13 | 6.93 | 0.14 | 7.24 | 6.23 | 7.34 |
| EV / FCF | — | 52.27 | — | — | — | — | — | — | 604.39 | 26.98 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 16.7% | 16.7% | 19.9% | 20.8% | 17.0% | 19.0% | 17.8% | 18.0% | 18.0% | 18.7% | 17.6% |
| Operating Margin | 7.4% | 7.4% | 10.0% | 11.9% | 7.3% | 9.5% | 8.1% | 8.0% | 8.2% | 8.2% | 7.2% |
| Net Profit Margin | 7.9% | 7.9% | 9.9% | 11.0% | 6.6% | 9.1% | 8.3% | 6.8% | 6.2% | 8.5% | 6.6% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 10.2% | 10.2% | 13.2% | 15.3% | 8.7% | 10.5% | 16.4% | 20.1% | 9.5% | 13.3% | 10.2% |
| ROA | 4.0% | 4.0% | 5.2% | 6.0% | 3.5% | 4.2% | 6.6% | 7.8% | 3.7% | 5.0% | 3.8% |
| ROIC | 4.1% | 4.1% | 5.6% | 7.1% | 4.1% | 4.7% | 6.9% | 9.7% | 5.1% | 5.1% | 4.4% |
| ROCE | 5.5% | 5.5% | 7.7% | 9.6% | 5.7% | 6.5% | 9.5% | 14.1% | 7.5% | 7.5% | 6.4% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.05 | 1.05 | 1.05 | 1.04 | 1.00 | 0.98 | 0.98 | 1.00 | 1.00 | 1.00 | 1.05 |
| Debt / EBITDA | 6.88 | 6.88 | 5.51 | 4.91 | 6.17 | 5.50 | 6.90 | 0.05 | 4.73 | 4.68 | 5.31 |
| Net Debt / Equity | — | 0.74 | 0.81 | 0.77 | 0.75 | 0.75 | 0.75 | 0.87 | 0.83 | 0.84 | 0.89 |
| Net Debt / EBITDA | 4.87 | 4.87 | 4.23 | 3.65 | 4.59 | 4.23 | 5.31 | 0.04 | 3.89 | 3.94 | 4.48 |
| Debt / FCF | — | 51.82 | — | — | — | — | — | — | 598.18 | 26.66 | — |
| Interest Coverage | 86.47 | 86.47 | 77.27 | 108.60 | 78.47 | 123.94 | 60.06 | 51.21 | 82.40 | 95.99 | 75.74 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.27 | 1.27 | 1.26 | 1.19 | 1.10 | 1.09 | 1.09 | 1.05 | 1.04 | 1.02 | 1.03 |
| Quick Ratio | 1.12 | 1.12 | 1.10 | 1.03 | 0.93 | 0.91 | 0.91 | 0.91 | 0.89 | 0.88 | 0.89 |
| Cash Ratio | 0.38 | 0.38 | 0.54 | 0.48 | 0.39 | 0.39 | 0.39 | 0.23 | 0.32 | 0.32 | 0.34 |
| Asset Turnover | — | 0.48 | 0.51 | 0.50 | 0.50 | 0.46 | 0.40 | 59.74 | 0.58 | 0.58 | 0.57 |
| Inventory Turnover | 8.19 | 8.19 | 8.36 | 7.76 | 7.25 | 6.65 | 5.86 | 1043.18 | 9.07 | 9.41 | 9.52 |
| Days Sales Outstanding | — | 126.64 | 116.63 | 121.11 | 118.72 | 122.00 | 140.67 | 1.08 | 117.09 | 112.52 | 115.72 |
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 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.3% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 2.7% | 100.0% | 100.0% | 100.0% | 100.0% |
| Payout Ratio | 33.0% | 33.0% | 23.8% | 17.8% | 29.7% | 24.9% | 0.3% | 30.4% | 34.2% | 25.1% | 34.9% |
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 10.4% | 1518.8% | 2036.8% | 1454.0% | 1266.6% | 1138.6% | 1018.4% | 1200.7% | 1093.2% | 1277.6% | 1103.3% |
| FCF Yield | 1.7% | 220.4% | — | — | — | — | — | — | 16.1% | 313.1% | — |
| Buyback Yield | 0.1% | 15.8% | 100.0% | 67.9% | 100.0% | 100.0% | 0.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Total Shareholder Yield | 3.5% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 2.7% | 100.0% | 100.0% | 100.0% | 100.0% |
| Shares Outstanding | — | $1.3B | $1.3B | $1.4B | $1.4B | $1.4B | $1.4B | $1.4B | $1.5B | $1.5B | $1.5B |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying TM stock.
Toyota Motor Corporation's current P/E ratio is 9.6x. The historical average is 0.2x. This places it at the 100th percentile of its historical range.
Toyota Motor Corporation's current EV/EBITDA is 10.5x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 3.9x.
Toyota Motor Corporation's return on equity (ROE) is 10.2%. The historical average is 10.1%.
Based on historical data, Toyota Motor Corporation is trading at a P/E of 9.6x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Toyota Motor Corporation's current dividend yield is 3.34% with a payout ratio of 33.0%.
Toyota Motor Corporation has 16.7% gross margin and 7.4% operating margin.
Toyota Motor Corporation's Debt/EBITDA ratio is 6.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Margin compression from competition
Deep Value with Cyclical Risks
Toyota trades at a P/E of 9.37 and P/B of 0.93, according to recent market data, suggesting the market prices in persistent margin pressure despite a PEG of 0.65 implying undervaluation relative to growth.
The trailing P/E of 9.37 is below the peer average, but the forward P/E of 0.06 is distorted by data anomalies and should be disregarded. The EV/EBITDA of 10.37 is in line with GM's 10.86, yet Toyota's superior net margin (10.9% vs GM's 1.5%) suggests the market is not fully crediting its profitability. The low P/B of 0.93 indicates the market values the asset base at a discount, possibly reflecting concerns about future returns on capital in a transitioning auto industry.
Margin Recovery Still Incomplete
Gross margin improved to 18.0% in 2027Q1 from 15.1% in 2026Q4, as reported in financial statements, yet remains below the 20%+ levels of 2025, indicating cost pressures persist.
Operating margin of 7.9% in 2027Q1 is a sharp rebound from 4.5% in the prior quarter, but it still trails the 10%+ seen in early 2025. Net margin of 10.9% is inflated by non-operating items, as evidenced by the 79% jump in net income versus a 11.8% revenue increase. Investors should monitor whether margin expansion is sustainable or a one-off recovery from a weak prior quarter.
Return on Capital Remains Subdued
ROIC averaged around 1.2% over the last ten quarters, based on reported figures, well below the cost of capital, indicating that Toyota is not generating excess returns on its invested capital.
ROE fluctuated between 1.6% and 6.1% quarterly, with the 2027Q1 reading of 3.8% reflecting a modest improvement but still far from the double-digit returns typical of a strong compounder. The low ROIC is partly due to the massive capital base, with asset turnover of only 0.13, suggesting that Toyota's heavy investment in tangible assets is not yet yielding proportional returns. This may indicate a period of transition as the company invests in electrification and autonomous technology.
Working Capital Cycle Lengthens
Toyota's cash conversion cycle extended to 125 days in 2027Q1 from 116 days in 2026Q4, according to the latest balance sheet data, driven by a rise in days sales outstanding to 129.
The increase in DSO from 122 to 129 days suggests slower collections, which may indicate customer financing pressure or a shift in sales mix. DIO and DPO remained relatively stable, but the overall CCC of 125 days is elevated compared to the 70-day level in 2025Q4, implying more capital is tied up in operations. This trend, combined with negative free cash flow margins in several quarters, highlights working capital as a key drag on cash generation.
Leverage Creeps Higher, Coverage Thins
Debt-to-equity rose to 1.15 in 2027Q1 from 1.04 a year earlier, as per the balance sheet, while interest coverage fell to 3.72 from 41.37 in the prior quarter, signaling increased debt service risk.
The sharp drop in interest coverage is partly due to a spike in interest expense, but the trend is concerning given the rising debt load. D/EBITDA of 25.27 is elevated, though this metric is distorted by the low EBITDA base in the quarter. The company's net debt position, with total debt of ¥43.7T against cash of ¥10.3T, suggests that leverage is higher than the reported D/E implies. Investors should monitor refinancing needs and the sustainability of coverage ratios.
Liquidity Buffer Thins Sequentially
Toyota's current ratio fell to 1.17 in 2027Q1 from 1.27 in 2026Q4, based on the latest balance sheet, while cash dropped ¥2.4T quarter-over-quarter, indicating a tighter liquidity position.
The quick ratio of 1.00 suggests that Toyota can cover its short-term liabilities without relying on inventory, but the sequential decline in both ratios points to reduced financial flexibility. The company's aggressive capital returns, including ¥3.7T in buybacks, may be straining liquidity. Under a severe stress scenario, the current ratio could approach 1.0, leaving little room for unexpected cash needs.
P/E Misleads on Cyclical Earnings
The P/E ratio is commonly misapplied to Toyota because its earnings are highly volatile, as seen in the 79% net income swing in 2027Q1, making the metric unreliable for valuation.
A more appropriate metric is EV/EBITDA, which at 10.37 is more stable and better captures the company's operating performance. However, even EV/EBITDA is distorted by the low EBITDA in the quarter; a normalized EBITDA over a full cycle would provide a clearer picture. Investors should also consider price-to-book, given the asset-heavy nature of the business, but note that ROIC is low, so the discount may be justified.