Latest Ratios: P/E Ratio 9.6x · EV/EBITDA 10.8x · 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 | $256.0B | $268.6B | $231.5B | $340.1B | $193.5B | $250.3B | $221.7B | $170.7B | $172.2B | $195.2B | $166.0B |
| Enterprise Value | $449.7B | $30.95T | $30.04T | $27.49T | $22.06T | $20.63T | $20.60T | $17.41T | $17.61T | $16.49T | $16.33T |
| P/E Ratio → | 9.60 | 0.07 | 0.05 | 0.07 | 0.08 | 0.09 | 0.10 | 0.08 | 0.09 | 0.08 | 0.09 |
| P/S Ratio | 0.76 | 0.01 | 0.00 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| P/B Ratio | 1.08 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| P/FCF | — | 1.50 | — | — | — | — | — | — | 6.22 | 0.31 | 6.14 |
| P/OCF | 7.41 | 0.05 | 0.06 | 0.08 | 0.07 | 0.07 | 0.06 | 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 | 0.58 | 0.58 | 0.56 | 0.59 |
| EV / EBITDA | 10.83 | 4.91 | 4.26 | 3.69 | 4.63 | 4.28 | 5.37 | 4.36 | 4.13 | 3.99 | 4.53 |
| EV / EBIT | 18.91 | 5.94 | 4.62 | 3.91 | 5.94 | 5.13 | 6.93 | 7.26 | 7.61 | 6.23 | 7.34 |
| EV / FCF | — | 172.34 | — | — | — | — | — | — | 635.64 | 26.41 | 603.55 |
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% | 9.3% | 9.7% | 9.4% | 13.3% | 10.2% |
| ROA | 4.0% | 4.0% | 5.2% | 6.0% | 3.5% | 4.2% | 3.7% | 3.8% | 3.6% | 5.0% | 3.8% |
| ROIC | 4.1% | 4.1% | 5.6% | 7.1% | 4.1% | 4.7% | 3.8% | 4.7% | 5.0% | 5.1% | 4.4% |
| ROCE | 5.5% | 5.5% | 7.7% | 9.6% | 5.7% | 6.5% | 5.4% | 6.8% | 7.3% | 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 | 1.02 | 1.00 | 1.05 |
| Debt / EBITDA | 6.88 | 6.88 | 5.51 | 4.91 | 6.17 | 5.50 | 6.91 | 5.34 | 4.94 | 4.68 | 5.31 |
| Net Debt / Equity | — | 0.74 | 0.81 | 0.77 | 0.75 | 0.75 | 0.75 | 0.81 | 0.84 | 0.84 | 0.89 |
| Net Debt / EBITDA | 4.87 | 4.87 | 4.23 | 3.65 | 4.59 | 4.23 | 5.32 | 4.32 | 4.09 | 3.94 | 4.48 |
| Debt / FCF | — | 170.84 | — | — | — | — | — | — | 629.42 | 26.10 | 597.41 |
| 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 | 0.34 | 0.34 | 0.32 | 0.34 |
| Asset Turnover | — | 0.48 | 0.51 | 0.50 | 0.50 | 0.46 | 0.40 | 0.55 | 0.57 | 0.58 | 0.57 |
| Inventory Turnover | 8.19 | 8.19 | 8.36 | 7.76 | 7.25 | 6.65 | 5.86 | 9.66 | 9.07 | 9.41 | 9.52 |
| Days Sales Outstanding | — | 126.64 | 116.63 | 121.11 | 118.72 | 122.00 | 140.67 | 116.19 | 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 | 2.8% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Payout Ratio | 31.1% | 31.1% | 23.8% | 17.8% | 29.7% | 24.9% | 31.6% | 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 | — | 66.9% | — | — | — | — | — | — | 16.1% | 319.9% | 16.3% |
| Buyback Yield | 0.1% | 14.9% | 100.0% | 67.9% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% |
| Total Shareholder Yield | 2.9% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 100.0% | 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 10.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 4.0x.
Toyota Motor Corporation's return on equity (ROE) is 10.2%. The historical average is 9.5%.
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 2.78% with a payout ratio of 31.1%.
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
Compressing margins and cash volatility
Low Multiples Reflect Cyclical Earnings Doubt
Based on reported figures, Toyota trades at a trailing P/E of 9.60 and EV/EBITDA of 10.83 against a P/B of 1.08, a discount to GM's 19.47 P/E that suggests the market is pricing in earnings durability concerns. The forward multiples in the data appear unreliable and should not be used for valuation conclusions.
The trailing P/E of 9.60 and PEG of 0.66 imply the market expects limited growth or is discounting the sustainability of recent earnings given gross margin compression from 21.3% to 15.1%. The forward P/E of 0.07 is implausible and likely reflects a data artifact, so it should be treated as data unavailable rather than a signal of extreme undervaluation. The 2.8% dividend yield provides some support, but valuation conclusions here rest on trailing figures and warrant further investigation.
Margin Compression Undermines Earnings Power
As reported in financial statements, Toyota's operating margin fell from 11.1% in 2025Q1 to 8.4% in 2027Q2, while net margin swung between 5.0% and 17.7%, indicating reported net income is far less stable than operating earnings. Operating margin is the more reliable gauge of underlying earning power.
Gross margin contracted from roughly 21% to 16-17% across the window, pointing to unit-cost or pricing pressure rather than a one-off charge. Net margin spikes, such as 17.7% in 2025Q3, appear to reflect non-operating or non-recurring items and should be stripped out before inferring earning power. Investors may wish to anchor on operating margin and monitor whether the recent partial recovery in gross margin persists.
Thin ROIC Shows Limited Capital Compounding
Based on Toyota's reported figures, ROIC has hovered between roughly 0.6% and 1.5% over ten quarters, a level that appears low relative to typical cost-of-capital assumptions and that suggests returns on the large asset base are not compounding meaningfully.
ROE ranging from 1.6% to 6.1% is inflated only sporadically by one-off gains, with the underlying trend closer to 2-3%. The gap between thin ROIC and a 1.08 P/B implies the market is valuing the franchise close to book rather than assigning a premium for returns. Declining margins rather than improving asset turnover appear to be the main drag on returns.
Debt Load Steady but Coverage Volatile
According to recent SEC filings, Toyota's debt-to-equity held narrowly between 1.04 and 1.15, yet interest coverage swung from 3.72 to over 200 across quarters, suggesting that coverage metrics are distorted by fluctuating interest expense and should be read with caution.
Stable D/E implies leverage has not been actively increased, though the sharp swings in coverage and the very high D/EBITDA readings (up to 35) point to inconsistent EBITDA or interest figures in the source data. Investors should monitor whether debt service comfort improves once operating margins stabilize. Refinancing risk cannot be assessed from the data supplied.
Misapplied Metric: Net Margin Overstates Earnings
Based on reported figures, net margin is the metric most commonly misapplied to Toyota, as its swings from 5.0% to 17.7% reflect financial and non-operating items that can mask a steady decline in core operating margin.
For a manufacturer with a large captive finance arm and substantial equity holdings, net income can be dominated by items unrelated to vehicle economics, so a headline net margin can look strong while gross and operating margins deteriorate. Operating margin, adjusted for non-recurring items, better reflects unit economics. Investors should monitor the gap between operating and net income as a signal of earnings quality.