Latest Ratios: P/E Ratio 37.3x · EV/EBITDA 33.1x · ROE 18.6%. (2019–2025 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 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $20.1B | $21.6B | $21.5B | $9.7B | $9.2B | $17.4B | — | — |
| Enterprise Value | $18.8B | $20.2B | $20.7B | $9.2B | $8.8B | $16.7B | — | — |
| P/E Ratio → | 37.32 | 63.41 | 1131.99 | — | — | — | — | — |
| P/S Ratio | 2.81 | 3.50 | 4.34 | 2.52 | 3.38 | 10.23 | — | — |
| P/B Ratio | 9.91 | 10.15 | 13.94 | 8.15 | 8.41 | 15.99 | — | — |
| P/FCF | 33.29 | 35.45 | 70.40 | 104.65 | — | — | — | — |
| P/OCF | 30.42 | 32.61 | 59.84 | 72.09 | — | 8722.74 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.29 | 4.17 | 2.37 | 3.22 | 9.82 | — | — |
| EV / EBITDA | 33.15 | 54.41 | 333.43 | — | — | — | — | — |
| EV / EBIT | 61.62 | 58.50 | 333.43 | — | — | — | — | — |
| EV / FCF | — | 33.29 | 67.56 | 98.62 | — | — | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 25.8% | 25.8% | 24.0% | 21.6% | 18.7% | 18.4% | 17.0% | 9.3% |
| Operating Margin | 5.0% | 5.0% | 0.3% | -7.4% | -14.1% | -13.4% | -26.7% | -32.0% |
| Net Profit Margin | 5.6% | 5.6% | 0.4% | -6.4% | -10.1% | -28.6% | -30.1% | -31.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | 18.6% | 18.6% | 1.4% | -21.5% | -25.1% | -157.1% | — | — |
| ROA | 12.2% | 12.2% | 0.9% | -13.2% | -15.7% | -38.8% | -45.9% | -68.4% |
| ROIC | 30.8% | 30.8% | 1.8% | -33.7% | -56.1% | -98.0% | — | — |
| ROCE | 15.9% | 15.9% | 1.1% | -22.4% | -29.0% | -22.5% | -54.6% | -128.3% |
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 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.02 | 0.02 | 0.02 | 0.04 | 0.09 | 0.09 | — | — |
| Debt / EBITDA | 0.11 | 0.11 | 0.55 | — | — | — | — | — |
| Net Debt / Equity | — | -0.62 | -0.56 | -0.47 | -0.41 | -0.65 | — | — |
| Net Debt / EBITDA | -3.53 | -3.53 | -14.02 | — | — | — | — | — |
| Debt / FCF | — | -2.16 | -2.84 | -6.03 | — | — | — | — |
| Interest Coverage | — | — | — | — | — | -39.83 | -18.65 | — |
Net cash position: cash ($1.4B) exceeds total debt ($40M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.75 | 2.75 | 2.34 | 2.28 | 2.75 | 4.13 | 4.81 | 1.64 |
| Quick Ratio | 2.64 | 2.64 | 2.20 | 2.09 | 2.49 | 3.95 | 4.67 | 1.53 |
| Cash Ratio | 2.05 | 2.05 | 1.75 | 1.70 | 2.06 | 3.60 | 4.27 | 1.08 |
| Asset Turnover | — | 1.96 | 2.01 | 1.97 | 1.55 | 0.98 | 1.06 | 2.18 |
| Inventory Turnover | 40.00 | 40.00 | 31.95 | 24.44 | 17.08 | 22.08 | 35.33 | 39.19 |
| Days Sales Outstanding | — | 7.53 | 8.46 | 11.99 | 10.29 | 11.77 | 14.99 | 24.49 |
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 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 2.7% | 1.6% | 0.1% | — | — | — | — | — |
| FCF Yield | 3.0% | 2.8% | 1.4% | 1.0% | — | — | — | — |
| Buyback Yield | 0.5% | 0.5% | 0.3% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.5% | 0.5% | 0.3% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $607M | $591M | $533M | $512M | $503M | $461M | $461M |
Includes 30+ ratios · 7 years · Updated daily
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DCF models, multiple analysis, and analyst estimates.
10-year return with dividends reinvested.
Compare growth, multiples, and margins vs sector.
Quick answers to the most common questions about buying TOST stock.
Toast, Inc.'s current P/E ratio is 37.3x. The historical average is 63.4x.
Toast, Inc.'s current EV/EBITDA is 33.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 54.4x.
Toast, Inc.'s return on equity (ROE) is 18.6%. The historical average is -36.7%.
Based on historical data, Toast, Inc. is trading at a P/E of 37.3x. Compare with industry peers and growth rates for a complete picture.
Toast, Inc. has 25.8% gross margin and 5.0% operating margin.
Toast, Inc.'s Debt/EBITDA ratio is 0.1x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Margin sustainability and buyback dependence
Metrics are mathematically derived from official filings.
Premium Trailing Multiples Compress on Forward Earnings
Based on the supplied multiples, Toast trades at a trailing P/E of 62.79 but a forward P/E of 25.58, indicating the market is pricing substantial earnings expansion over the next twelve months rather than current profitability.
The gap between trailing and forward P/E suggests investors are underwriting a sharp step-up in net income, which is consistent with the operating margin recovery from 0.4% to 8.3% observed across the ten-quarter window. Relative to peer Patria Investments at 17.80 P/E, the multiple carries a meaningful premium that appears to assume margin durability the reported history has not yet fully demonstrated. Investors should monitor whether forward estimates are revised as quarterly net margins have proven volatile.
Operating Margin Recovery Still Thin
Toast's operating margin rose from 0.4% in 2024Q2 to 8.3% in 2026Q3, yet remains modest against a gross margin near 27%, implying that most gross profit is still absorbed by operating expenses.
The spread between gross margin of 27.4% and operating margin of 8.3% indicates a cost base, led by SG&A, that consumes roughly 70% of gross profit, leaving limited cushion for pricing or volume shocks. Net margin of 8.5% in the latest quarter sits above operating margin, which may reflect non-operating gains rather than purely recurring earning power. Based on reported figures, the improvement appears real but warrants caution before treating the latest quarter as a run-rate.
ROIC Recovering but Below Prior Peak
According to the supplied ratio table, ROIC climbed from 0.6% in 2024Q2 to 11.8% in 2026Q2 before easing to 11.7% in 2026Q3, suggesting returns on invested capital have been rebuilt over roughly two years.
The trajectory indicates compounding of returns as operating margins expanded, though ROE of 7.8% remains well below ROIC-implied economics, which may reflect a large equity base accumulated through prior financing. The 2025Q4 dip in ROIC to 9.0% alongside rising ROE suggests returns are sensitive to quarterly swings in earnings. Continued improvement will depend on whether margin expansion persists rather than on balance sheet efficiency alone.
Strong Current Ratio Supported by Cash Build
Toast's current ratio of 2.66 and quick ratio of 2.43 in 2026Q3 indicate short-term obligations are covered well over twice by liquid assets, with inventory playing a negligible role in the position.
The near-identical current and quick ratios suggest the liquidity position rests almost entirely on cash and receivables rather than inventory, which is consistent with a software-infrastructure business model. Based on the reported figures, the position appears comfortably able to absorb moderate operating shocks. The main analytical question is whether elevated cash is being deployed through buybacks, which fell from $323M in 2026Q1 to zero in 2026Q3 and may signal a shift in capital allocation priorities.
Gross-to-Net Margin Gap Warrants Scrutiny
The ratio most commonly misapplied to Toast is net margin, which the supplied data shows swinging from 1.1% to 8.5% and which may be distorted by non-operating items and stock-based compensation rather than reflecting core software economics.
Applying net margin as a proxy for earning power obscures the effect of stock-based compensation, which the cash flow findings indicate is a non-cash add-back of roughly $49M per quarter. A more informative lens is operating margin adjusted for SBC, or free cash flow margin, which has ranged between 5.2% and 13.4%. Investors should treat reported net income as an incomplete gauge of economic profitability until the SBC-adjusted earnings base is clearer.