Latest Ratios: P/E Ratio -2.3x · EV/EBITDA 38.4x · ROE -7.3%. (2012–2025 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 | $635M | $426M | $229M | $159M | $92M | $345M | $277M | $774M | $892M | $1.1B | $982M |
| Enterprise Value | $2.8B | $3.5B | $2.8B | $1.7B | $2.3B | $2.7B | $2.3B | $3.2B | $3.9B | $4.1B | $4.1B |
| P/E Ratio → | -2.34 | — | — | 1.01 | — | 2.19 | 5.66 | 20.72 | — | 10.44 | 16.76 |
| P/S Ratio | 2.63 | 1.02 | 0.40 | 0.23 | 0.12 | 0.45 | 0.34 | 0.85 | 0.99 | 1.14 | 1.06 |
| P/B Ratio | 0.49 | 0.24 | 0.09 | 0.07 | 0.05 | 0.20 | 0.24 | 0.81 | 0.82 | 0.92 | 0.82 |
| P/FCF | — | — | — | 1.40 | 0.56 | 1.32 | 0.78 | 2.28 | 2.46 | 3.10 | 3.46 |
| P/OCF | 13.46 | 6.39 | 3.67 | 0.94 | 0.40 | 1.16 | 0.74 | 2.06 | 1.91 | 2.17 | 1.86 |
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 | — | 8.29 | 4.92 | 2.44 | 3.03 | 3.59 | 2.76 | 3.56 | 4.27 | 4.45 | 4.37 |
| EV / EBITDA | 38.36 | 16.81 | 28.54 | 2.25 | 4.60 | 4.33 | 3.54 | 4.35 | 5.37 | 5.62 | 5.43 |
| EV / EBIT | 68.72 | — | — | 1.82 | 12.00 | 6.46 | 5.09 | 6.84 | 8.34 | 8.48 | 8.20 |
| EV / FCF | — | — | — | 15.11 | 13.99 | 10.45 | 6.36 | 9.54 | 10.62 | 12.13 | 14.34 |
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 | 36.8% | 36.8% | 93.4% | 94.5% | 92.9% | 96.0% | 95.9% | 95.9% | 56.9% | 79.8% | 81.2% |
| Operating Margin | 13.7% | 13.7% | -7.1% | 80.8% | 39.0% | 54.0% | 49.3% | 52.5% | 51.8% | 52.4% | 53.3% |
| Net Profit Margin | -37.2% | -37.2% | -15.4% | 22.3% | -3.1% | 12.2% | 29.8% | 20.6% | -10.1% | 54.5% | 31.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -7.3% | -7.3% | -3.6% | 7.4% | -1.3% | 6.5% | 23.2% | 18.2% | -8.1% | 43.2% | 27.7% |
| ROA | -2.3% | -2.3% | -1.3% | 2.5% | -0.4% | 1.7% | 5.5% | 3.6% | -1.6% | 8.5% | 4.8% |
| ROIC | 0.9% | 0.9% | -0.7% | 10.7% | 5.5% | 8.5% | 9.3% | 9.6% | 8.5% | 8.6% | 8.7% |
| ROCE | 1.1% | 1.1% | -0.6% | 9.1% | 4.7% | 7.8% | 9.3% | 9.4% | 8.3% | 8.5% | 8.5% |
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 | 2.00 | 2.00 | 1.25 | 1.35 | 2.11 | 2.26 | 2.20 | 3.00 | 3.41 | 3.11 | 3.24 |
| Debt / EBITDA | 17.14 | 17.14 | 31.83 | 4.22 | 7.77 | 6.09 | 3.95 | 3.88 | 5.20 | 4.84 | 5.16 |
| Net Debt / Equity | — | 1.72 | 1.03 | 0.65 | 1.20 | 1.40 | 1.73 | 2.57 | 2.71 | 2.69 | 2.58 |
| Net Debt / EBITDA | 14.74 | 14.74 | 26.21 | 2.04 | 4.41 | 3.78 | 3.11 | 3.31 | 4.13 | 4.19 | 4.12 |
| Debt / FCF | — | — | — | 13.71 | 13.43 | 9.13 | 5.58 | 7.26 | 8.16 | 9.03 | 10.88 |
| Interest Coverage | -1.73 | -1.73 | -0.29 | 3.48 | 0.86 | 2.24 | 2.18 | 1.75 | — | — | — |
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 | 0.18 | 0.18 | 3.98 | 13.19 | 10.43 | 8.89 | 5.51 | 7.04 | 4.76 | 3.56 | 4.39 |
| Quick Ratio | 0.18 | 0.18 | 3.97 | 13.16 | 10.42 | 8.80 | 5.48 | 7.02 | 4.75 | 3.54 | 4.37 |
| Cash Ratio | 0.15 | 0.15 | 2.15 | 12.12 | 9.79 | 7.97 | 5.05 | 6.37 | 4.42 | 3.07 | 3.81 |
| Asset Turnover | — | 0.06 | 0.08 | 0.11 | 0.12 | 0.12 | 0.19 | 0.20 | 0.15 | 0.16 | 0.15 |
| Inventory Turnover | 177.82 | 177.82 | 26.06 | 8.92 | 26.70 | 1.78 | 8.14 | 13.57 | 160.31 | 62.60 | 44.66 |
| Days Sales Outstanding | — | 56.22 | 120.28 | 49.14 | 28.68 | 60.62 | 19.22 | 28.06 | 15.87 | 23.06 | 18.84 |
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 | — | — | — | — | — | 0.0% | 0.0% | 0.0% | — | 0.0% | 0.0% |
| Payout Ratio | — | — | — | — | — | — | — | — | — | 0.0% | 0.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | 98.6% | — | 45.8% | 17.7% | 4.8% | — | 9.6% | 6.0% |
| FCF Yield | — | — | — | 71.4% | 177.9% | 75.6% | 128.4% | 43.9% | 40.7% | 32.3% | 28.9% |
| Buyback Yield | 0.0% | 0.0% | 3.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 48.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 3.4% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 48.0% | 0.0% |
| Shares Outstanding | — | $15M | $14M | $15M | $12M | $12M | $13M | $24M | $24M | $24M | $24M |
Includes 30+ ratios · 14 years · Updated daily
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Quick answers to the most common questions about buying TSAT stock.
Telesat Corporation's current P/E ratio is -2.3x. The historical average is 28.4x.
Telesat Corporation's current EV/EBITDA is 38.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 7.3x.
Telesat Corporation's return on equity (ROE) is -7.3%. The historical average is 6.4%.
Based on historical data, Telesat Corporation is trading at a P/E of -2.3x. Compare with industry peers and growth rates for a complete picture.
Telesat Corporation has 36.8% gross margin and 13.7% operating margin. Operating margin between 10-20% is typical for established companies.
Telesat Corporation's Debt/EBITDA ratio is 17.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Liquidity crisis amid accelerating cash burn
Valuation Reflects Distress, Not Growth
Telesat's EV/EBITDA of 19.18x appears elevated but is misleading given the company's negative earnings and shrinking EBITDA base, while the P/B of 0.50x suggests the market is pricing in significant asset impairment or equity dilution risk.
The negative P/E ratio of -5.67x renders it meaningless for valuation, forcing reliance on EV/EBITDA, which at 19.18x is higher than peer Viasat's 9.85x but lower than EchoStar's 35.94x. This premium likely reflects the market's attempt to value TSAT's spectrum assets and Lightspeed optionality rather than its current cash flows. The P/B ratio of 0.50x, well below 1.0x, indicates the market believes the book value of assets is overstated or that future returns on equity will remain negative, a view supported by the -13.9% ROE in 2026Q2.
Margin Collapse Signals Structural Break
Gross margin compression from over 90% to 22.7% in 2026Q2, as reported in the financial data, indicates a fundamental shift in revenue mix toward lower-margin services, severely undermining the core business's ability to generate cash.
The dramatic decline in gross margin from a stable ~93% range to 22.7% suggests the company is now recognizing revenue from lower-margin hardware sales or transit services, a stark departure from its high-margin legacy broadcast model. This structural shift, combined with a negative operating margin of -16.0%, means the business is currently destroying value on each dollar of revenue generated. The net margin of -2.1% in 2026Q2, while an improvement from prior quarters, remains negative and is likely distorted by non-operating items, indicating core operational profitability is still absent.
Capital Erosion Accelerates
Return on Invested Capital (ROIC) has turned negative at -0.2% in 2026Q2, a sharp reversal from the modest positive returns seen in early 2025, indicating the company is now destroying value on the capital deployed for its Lightspeed transition.
The ROIC trend shows a clear decay from a peak of 1.2% in 2024Q1 to negative territory, driven by collapsing operating income and a growing capital base. This negative return is compounded by a negative ROE of -13.9%, confirming that equity holders are experiencing direct capital impairment. The drivers are twofold: a severe contraction in operating margins and an increase in invested capital for the Lightspeed constellation that has yet to generate any meaningful return.
Leverage Surges Amidst Operational Collapse
The debt-to-equity ratio surged to 3.20x in 2026Q2 from 2.00% in 2025Q4, a dramatic increase that, when combined with a negative interest coverage ratio of -0.25x, suggests the company's debt service capacity is critically strained.
The leverage profile has deteriorated from a seemingly manageable 1.25x in 2024Q4 to a highly leveraged 3.20x, driven by both a surge in total debt to $3.8B and a collapse in equity to $376.8M. The negative interest coverage ratio indicates that operating income is insufficient to cover interest expenses, raising significant concerns about covenant compliance and refinancing risk. This level of leverage is unsustainable for a company with negative profitability and accelerating cash burn, warranting close monitoring for potential restructuring or dilutive financing.
Liquidity Position Approaches Critical Levels
The current ratio has collapsed to 0.17 in 2026Q2 from 11.69 in 2024Q1, indicating that Telesat's short-term liabilities now vastly exceed its liquid assets, a position that appears untenable without immediate access to additional capital.
The rapid deterioration in the current ratio from a fortress-like 11.69 to 0.17 signals a severe liquidity crunch, with the company's cash reserves of $383.4M appearing insufficient to cover near-term obligations. This position would likely be untenable under any severe stress scenario, such as a delay in Lightspeed funding or a further decline in legacy revenue. The quick ratio mirrors the current ratio at 0.17, confirming there is no meaningful inventory buffer to provide additional liquidity, and the company is entirely dependent on cash and near-term cash generation.
The Misleading Safety of EV/EBITDA
The EV/EBITDA multiple is the ratio most commonly misapplied to Telesat's business model, as it obscures the true capital intensity and liquidity risk by excluding the massive capital expenditures required for the Lightspeed constellation.
For a company in a capital-intensive transition like Telesat, EV/EBITDA is a poor proxy for valuation because it ignores the substantial cash outflows for capital expenditures, which have surged to $159.3M in a single quarter. This metric makes the company appear less distressed than it is, as it does not reflect the negative free cash flow burn or the need for future equity raises. A more appropriate metric would be EV/FCF or a discounted cash flow analysis that explicitly models the Lightspeed funding gap and the timeline to positive returns, which would likely reveal a much higher risk profile.